In a recent revelation, the Economic and Financial Crimes Commission (EFCC) has pointed out that a significant 70 percent of financial crimes in Nigeria have their roots in the banking sector. The commission has issued a stern warning to bank auditors to take immediate action to stem this rising tide.
The EFCC expressed its concern over the increasing rate at which bank customers are suffering losses due to insider-related fraud. This type of fraud includes the outright theft of customer deposits, unauthorized loan facilities, forgery, and a host of other criminal practices.
The Chairman of EFCC, Ola Olukoyede, voiced these concerns during his speech at the 2024 Annual retreat of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBI) in Abuja. He expressed his displeasure at the high rate of fraudulent activities plaguing the local banking industry.
Speaking through the Director, Internal Audit of the Commission, Idowu Oluwole-Apejoye, the anti-graft czar highlighted that banking fraud in the country often involves either insiders or outsiders, or sometimes, a collaboration between the two.
Olukoyede urged Audit Executives in banks across the country to be more vigilant and proactive in combating financial crimes in the banking sector. He said, "Broadly speaking, banking fraud in Nigeria is both insider and outsider-related. The insider-related fraud comprises outright stealing of customers deposits’ authorized loan facilities, forgery and several other kinds of unhealthy and criminal practices. The outsider-related ones include hacking, Automated Teller Machine, ATM, fraud, conspiracy among others. And the absurd one is when there is collaboration between the both of them."
He called for a united effort by relevant authorities and professionals, especially bank auditors, to prevent and detect fraudulent practices in the industry. He emphasized that "70 per cent of financial crimes in Nigeria is traceable to the banking sector. As gatekeepers on responsible financial conduct, adherence to regulations, and effective functioning of the financial services industry."
He further encouraged the auditors to use the retreat as an opportunity to review developments in the financial sector of the nation and offer sound recommendations to the EFCC on how the rising cases of financial crimes can be curbed in our banks.
In conclusion, Olukoyede urged the auditors to always approach the Commission on any issue that they consider important in addressing corruption not only in the financial sector but in all other areas of life in our dear country.