It is indeed disturbing and unacceptable that 70 percent of financial crimes in Nigeria are traceable to the banking sector.

Development Diaries reports that the Economic and Financial Crimes Commission (EFCC) Chairman, Ola Olukayode, revealed this while speaking in Abuja at a retreat of the Association of Chief Audit Executives of Banks in Nigeria.

‘It is estimated that about 70 percent of financial crimes in Nigeria are traceable to the banking sector; this scenario is disturbing and unacceptable’, Olukayode said.

The disclosure that 70 percent of financial fraud cases in Nigeria involve banks highlights serious concerns regarding the integrity of the nation’s financial sector.

As the primary custodians of individuals’ and businesses’ funds, banks play a pivotal role in maintaining trust and security in the financial system.

However, their involvement in such a significant portion of fraudulent activities raises questions about their regulatory oversight, internal controls, and ethical standards.

The EFCC should intensify its monitoring and supervision of banks to ensure compliance with anti-fraud regulations and guidelines.

Also, the EFCC should enforce strict penalties or sanctions against banks found to be involved in financial fraud. This can act as a deterrent to other financial institutions and create a culture of compliance within the industry.

Furthermore, strengthened collaboration with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC) is essential so that these agencies can better detect and prevent financial fraud in the banking sector.

Development Diaries calls on the EFCC to conduct thorough investigations into reported cases of financial fraud involving banks and prosecute perpetrators to the fullest extent of the law.

Photo source: EFCC