The Economic and Financial Crimes Commission (EFCC) has accused Nigerian banks of involvement in about 70% of the financial crimes in Nigeria.

Ola Olukayode, the EFCC Chairman, made this known recently in Abuja at the 2023 Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN).

He specifically described Nigeria’s banking sector as a cesspool of fraudulent activities while mentioning that the ugly development had been raising considerable challenges and concerns to the commission.

Idowu Apejoye, the Director of Internal Audit, EFCC, who represented Mr Olukayode, pointed out a need for concerted effort by relevant authorities and professionals, especially audit executives to prevent and tackle issues of fraudulent practices in the banking sector.

In his words, “Broadly speaking, banking fraud in Nigeria is both inside and outside related. The inside 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 per cent of financial crimes in Nigeria are traceable to the banking sector, this scenario is disturbing and unacceptable.”

While responding to the EFCC’s boss, Prince Akamadu, the ACAEBIN Chairman, explained that banks have been working tirelessly to curb fraudulent activities, while pointing out that the banking sector has done more in the area of Know Your Customer mechanism.