On Monday, the Economic and Financial Crimes Commission filed an indictment against banks, alleging their involvement in nearly 70% of financial crimes in Nigeria.
Speaking at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria in Abuja, Ola Olukayode, the Chairman of the EFCC, revealed this.
He made the observation that the banking industry was turning into a hotbed of fraud, which had been posing serious problems and worries for the commission.
Olukayode, who was accompanied by Idowu Apejoye, Director of Internal Audit at the EFCC, stated that in order to stop and address fraudulent practices in the industry, key authorities and professionals—especially audit executives—need to work together.
He said, “Broadly speaking, banking fraud in Nigeria is both inside and outside related. The inside 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 per cent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable.”
Olukayode said that ACAEBIN should make sure that accounts are properly reconciled each month in compliance with accounting regulations in order to stop the inconsistencies.
He gave the group the task of keeping an eye on the financial operations of banks, which included, among other things, conducting quarterly reviews, checking, and comparing actual and planned revenue with expenses.