By Obas Esiedesa, Abuja 

The Economic and Financial Crimes Commission, EFCC, has warned that the Nigerian banking sector was becoming a cesspool of fraudulent activities that undermine the economy and the financial sector.

EFCC Chairman, Ola Olukoyede who stated this in Abuja yesterday at the annual conference of the Association of Audit Executives of Banks in Nigeria, ACAEBIN, said rising fraudulent activities in the sector is raising considerable challenges and concerns to the commission.

The conference has the theme: “The role of internal auditor in promoting stability in the financial services sector and national economic growth”.  

Represented by the Commission’s Director, Internal Audit, Mrs. Idowu Apejoye, he pointed out that as Chief Audit Executives of Banks, the group has to do more to curb these activities to maintain trust and integrity of the sector.

“The sector is crucial as the primary supplier of credits to individuals, organizations, businesses and governments. The sector also offers several financial services such as mobilization, safeguarding of deposits, facilitating transactions and contributing to economy stability. It is one of the most important employer of labour and driver of development through its multifarious networks.

“The diversity of the banking sector is also a strength to the economy. Whether retail, commercial investment or multi-banking, no economy grows without banking and this is why every effort should be made to tackle fraudulent practices in the sector. In Nigeria particularly, the banking sector is increasingly becoming a cesspool of fraudulent activities and this is raising considerable challenges and concerns to the Economic and Financial Crimes Commission”, he added.

Olukoyede noted that “banking fraud in Nigeria is both inside and outside related. The inside related fraud comprise outright selling of customers’ deposits, authorizing loan facilities, forgery and several other kinds of unhealthy and criminal practices. The outsider related ones include the hacking, ATM fraud, conspiracy among others and then the absurd one is when both collaborate, that is collaborating among the bankers and then the outsider”.

 Earlier, the Chairman of ACAEBIN, Prince Akamadu explained that the conference theme “resonates deeply with the challenges and opportunities our banking industry faces and by extension the economy”.

He observed that the “past one year has witnessed series of challenges in our economy which has negatively impacted the living conditions of the generality of Nigerians and the banking industry is at the centre of this melee. As members of the third line defence, we are expected to be proactive in our approach and support the effort the Central Bank of Nigeria in addressing the current challenges in the financial sector.

“For us to continue to play our part as valued stakeholders, it is pertinent that we take a look into the future and equip ourselves with those critical skills and resources that would enable us to perform our functions well, not just as gatekeepers but also as valued advisors to our organizations and the industry at large”.