EFCC links 70% of financial crimes in Nigeria to banks

The Economic and Financial Crimes Commission (EFCC) says commercial banks are involved in about 70% of financial crimes in Nigeria.

The chairman of the agency, Ola Olukoyede, disclosed this in Abuja on Monday, March 4, 2024, while speaking at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN).

He maintained that the banking sector has become a cesspool of fraudulent activities.

The EFCC boss, who was represented by the Director of Internal Audit, EFCC, Idowu Apejoye, called on relevant authorities and professionals to address the issues of fraudulent practices in the banking sector.

“Broadly speaking, banking fraud in Nigeria is both inside and outside related. The insider-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% of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable,” the EFCC chairman said.

EFCC boss proffers solution

To address the problem, Olukoyede charged ACAEBIN to monitor the financial activities of banks and ensure proper reconciliation of accounts every month.

He also advised the association to monitor the banks’ budgeted revenue with expenses and carry out periodical reviews and checks.

Reacting to Olukoyede’s recommendations, the chairman of the association, Prince Akamadu, promised that some of the suggestions would be worked on.

He also promised that the association is fully committed to fixing Nigeria’s foreign exchange problem.