The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has shed light on a concerning trend, revealing that an estimated 70% of financial crimes in Nigeria can be traced back to the banking sector. This revelation came during the 2024 Annual Retreat/Conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) held in Abuja.
The theme of the event, “The Role of the Internal Auditor in Promoting Stability in the Financial Services Sector and National Economic Growth,” underscored the critical importance of internal audit executives in combating fraud within the banking sector. Represented by the Director Internal Audit EFCC, Mrs. Idowu Apejoye, Olukoyede emphasized the pivotal role of Chief Audit Executives in sanitizing, stabilizing, and strengthening the financial services sector.
Olukoyede highlighted the pervasive nature of banking fraud in Nigeria, describing it as both insider and outsider-related. Insider-related fraud includes outright stealing of customers’ deposits, authorized loan facilities, and forgery, while outsider-related activities encompass hacking, ATM fraud, and conspiracy. He stressed the alarming collaboration between insider and outsider elements in perpetrating financial crimes.
The EFCC Chairman further emphasized the multifaceted responsibilities of internal auditors, ranging from risk assessment and fraud prevention to enhancing operational efficiency. He noted that every audit engagement contributes to the management of economic entities and society as a whole, advocating for robust prevention strategies as the most effective measures against financial malpractices.
Prince Akamadu, Chairman of ACAEBIN, echoed the need for introspection within the banking industry to address challenges for economic growth. He reassured stakeholders of the industry’s commitment to maintaining integrity, emphasizing the importance of addressing regulatory reporting processes and fraudulent activities.
The retreat aimed to produce a communique addressing the role of banks in addressing industry challenges, particularly in light of the sector’s significant contributions to Know Your Customer (KYC) initiatives. Through collaborative efforts and strategic interventions, stakeholders aim to mitigate the risk of financial crimes and promote stability within the financial services sector, safeguarding national economic growth.