Urgent Call for Collaboration in Combating Bank Fraud in Nigeria

The fight against insider abuses and financial malpractices within Nigeria’s banking sector requires a collective effort, according to recent declarations at a high-level workshop.

“This fight is not one that any corporation can undertake alone, making this year’s theme, ‘Effective Collaboration as a Strategy in the Fight Against Insider Abuses and Financial Malpractices in Banks and Other Financial Institutions in Nigeria’ particularly pertinent,” asserted a key speaker.

Representing the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Olanipekun Olukoyede, the Commander of the EFCC Lagos Zonal Command, Michael Wetkas, highlighted the escalating issue of insider fraud. He recounted a 2022 incident where bank employees colluded to unlawfully raise withdrawal limits on specific accounts, enabling external perpetrators to infiltrate the banking system and embezzle millions of naira.

Wetkas pointed out the vulnerabilities in the fintech sector, which, he said, are often exploited due to inadequate regulatory oversight. He emphasized that while reactive measures are necessary, preventive strategies are crucial. The workshop, he noted, serves as a crucial platform for sharing best practices and strategies, reinforcing a collective commitment to transparency, accountability, and resilience in the financial sector.

Data from the Financial Institutions Training Centre’s first-quarter 2024 fraud and forgeries report indicated that commercial banks terminated 35 employees for fraudulent activities between January and March. This statistic underscores the need for stronger internal controls and continuous vigilance within financial institutions.

Assistant Inspector General of Police Romokere Ibani, overseeing the FCID Annex in Alagbon, Ikoyi, Lagos, urged workshop participants to enhance their collaboration to safeguard the stability of the banking sector. “We must be more sceptical and circumspect about our financial dealings with banks,” he stated, calling for unified efforts to protect Nigeria’s banking system and alleviate the sector’s vulnerabilities.

The Nigeria Deposit Insurance Corporation (NDIC) recently hosted this workshop for judicial workers in Lagos, stressing the importance of inter-agency cooperation in tackling insider abuses and financial malpractices effectively.