EFCC Chairman Declares Banking Sector a “Cesspool of Fraudulent Activities”

Commercial banks implicated in 70% of financial crimes, says EFCC

EFCC and Commercial Banks
Abuja in The Economic and Financial Crimes Commission (EFCC) has raised alarming concerns about the prevalence of fraudulent activities in Nigeria’s banking sector. According to the chairman of the agency, Ola Olukoyede, commercial banks are involved in approximately 70% of financial crimes in the country.

Speaking at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), Olukoyede characterized the banking sector as a “cesspool of fraudulent activities.” He emphasized the need for relevant authorities and professionals to address this pressing issue.

Olukoyede, represented by the Director of Internal Audit at EFCC, Idowu Apejoye, highlighted the different types of fraudulent practices plaguing the sector. Insider-related fraud includes the misappropriation of customers’ deposits, fraudulent loan authorizations, forgery, and other illicit activities. On the other hand, outsider-related fraud encompasses hacking, ATM fraud, and conspiracy. The EFCC chairman expressed concern about collusion between insiders and outsiders, as it undermines the integrity of the banking system.

The extent of financial crimes traceable to the banking sector is estimated to be around 70%, a disturbing and unacceptable statistic, according to the EFCC chairman. Urgent action is required to combat this pervasive issue and safeguard the financial system.

Olukoyede proposed solutions to address the problem, urging ACAEBIN to closely monitor banks’ financial activities and ensure regular reconciliation of accounts. He also emphasized the importance of monitoring budgeted revenue and expenses, as well as conducting periodic reviews and checks.

In response to the EFCC chairman’s recommendations, Prince Akamadu, the chairman of ACAEBIN, pledged to work on implementing some of the suggestions. He reassured the public that the association is fully committed to addressing Nigeria’s foreign exchange problem, indicating a dedication to tackling broader financial challenges in the country.