The Economic and Financial Crimes Commission (EFCC) has revealed that about 70% of financial crimes in Nigeria are linked to the banking sector, calling for more vigilance and accountability from the internal auditors of banks.
The EFCC Chairman, Ola Olukoyede, made this disclosure at the 2024 Annual Retreat/Conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) held on Monday, in Abuja.
The event, which had the theme: “The Role of the Internal Auditor in Promoting Stability in the Financial Services Sector and National Economic Growth,” was attended by top bankers, auditors, regulators, and other stakeholders in the financial industry.
Olukoyede, who was represented by the Director Internal Audit EFCC, Idowu Apejoye, said the banking sector was becoming a “cesspool of fraudulent activities posing a serious challenge and concern to the EFCC.”
The EFCC boss explained that banking fraud in Nigeria involved both insiders and outsiders, who engaged in various forms of criminal practices such as stealing customers’ deposits, authorising illegal loans, forging documents, hacking, ATM fraud, and conspiracy.
He said it was “absurd scenario that there was collaboration between the insiders and outsiders, amounting to 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” he stated.
He urged the Chief Audit Executives of banks to sanitise, stabilise, and strengthen the financial services sector and the national economy.
“As Certified Bankers and professional auditors, you have an important role to play in the fight against corruption. Every audit engagement promotes management of economic entities and the society as a whole. Globally, the most effective measures against financial practices are prevention strategies owing to their cost-effective benefits.”
He also highlighted the multifaceted responsibilities of internal auditors in the financial sector, such as risk assessment, fraud prevention, operational efficiency, strategic decision-making, and financial stability.
The Chairman of ACAEBIN, Prince Akamadu, in his remarks, emphasised the need for introspection and reassessment within the banking industry and its role in addressing the challenges for economic growth.
He said the association was committed to maintaining the integrity of the industry and fixing the foreign exchange problem.
“By the end of this retreat, we are expected to come up with a communique. And we hope to address some of the issues one way or the other that will address the role of banks in the challenges in this industry given that it is multi-faceted.
There is no institution in any sector that has done more in the area of Know Your Customer (KYC) than the banking industry,” he stated.
