The recently unveiled report from the Financial Institutions Training Centre (FITC) has sent ripples through the banking sector, uncovering a startling surge in fraud-related incidents. Over the past two years, a staggering 110 bank executives and junior staff members have faced dismissal due to fraudulent activities, as outlined in the ‘Reports of Fraud and Forgeries in Nigerian Banks’ spanning from the second quarter of 2021 to Q2 2023.
FITC’s institutional members, comprising the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria, are part of the Nigerian Banker’s Committee. The report reveals a concerning trend, with just four bank officials dismissed in Q2 2021, escalating to an alarming 175% increase, with 11 dismissals in Q2 2023.
The most significant surge occurred in Q3 2022, witnessing the termination of employment for 20 officials. The report also points to a staggering 967 fraud cases involving sacked staff members within the study period. The highest number of cases surfaced in Q4 2021, totaling 410 incidents, whereas the lowest count was observed in Q3 2021, with only 32 cases.
In the comparison between Q2 2021 and Q2 2022, bank staff were embroiled in 657 fraud cases. However, between Q3 2022 and Q2 2023, this figure stood at 310 cases. The financial repercussions have been dire, with approximately N18.01 billion lost to fraud, perpetrated both by bank staff and external actors, out of a total of N81.69 billion tied to fraud cases.
Notably, the highest amount lost, N5.79 billion, was recorded in Q2 2023, while the lowest sum, N472.28 million, was registered in Q1 2023. Concerning the total amount involved, Q3 2021 reported the highest figure, N34.78 billion, while Q2 2022 reported the lowest, at N1.18 billion.
Notably, mobile fraud, computer/web fraud, and POS-related fraud have persistently remained the dominant types of fraudulent activities, with no change in this trend observed through Q2 2023.
