Revealing a startling statistic, the Economic and Financial Crimes Commission (EFCC) disclosed that a staggering 70% of financial crimes in Nigeria are directly linked to commercial banks, painting a bleak picture of the rampant fraudulent activities plaguing the nation’s financial sector.
Addressing attendees at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) in Abuja, EFCC Chairman Ola Olukoyede delivered a sobering assessment of the state of affairs, denouncing the banking sector as a breeding ground for illicit practices.
Olukoyede, speaking through EFCC’s Director of Internal Audit, Idowu Apejoye, highlighted the prevalence of both insider and outsider-related fraud, ranging from misappropriation of customers’ funds to sophisticated hacking schemes.
Expressing grave concern over the collaboration between bank insiders and external perpetrators, Olukoyede emphasized the urgent need for decisive action to stem the tide of financial malfeasance.
“Broadly speaking, banking fraud in Nigeria is both inside and outside related. The insider-related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices.
“The outsider-related ones include hacking, ATM fraud, conspiracy, among others. And then the absurd one is when both collaborate, that is collaboration among the bankers and the outsider.
“That one is the one that is really absurd because when you do that, that means you are selling out the system. It is estimated that about 70% of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable,” the EFCC chairman said.
To tackle the pervasive issue, Olukoyede urged ACAEBIN to intensify monitoring efforts, ensuring meticulous scrutiny of banks’ financial activities and rigorous reconciliation of accounts on a monthly basis.
In response, ACAEBIN Chairman Prince Akamadu pledged the association’s commitment to implementing EFCC’s recommendations, signaling a united front in the battle against financial crimes and a resolve to safeguard Nigeria’s economic integrity.
