There is growing unease within Nigeria’s banking sector following the Economic and Financial Crimes Commission (EFCC)’s announcement of its intention to target top bank executives as part of efforts to combat corruption in the public sector.
This coming against the accusation that banks in the country have been identified as major facilitators and conduit pipe for the perpetration of corruption in Government and it’s agencies, which has severely undermined the country’s economy.
The EFCC Executive Chairman, Olanipekun Olukoyede, stirred the hornet’s nest at the weekend, during the gathering of bankers, when he gave indication of the resolve of the Commission to begin prosecution of top officials of banks over alleged financial crimes and other infractions.
Olukoyede, at the opening of the 17th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, revealed that the EFCC had completed investigations into a number of bank officials and was preparing to take legal action.
At a banking conference the Chairman emphasised the Commission’s commitment to prosecute senior bank officials involved in financial crimes.
He stressed the importance of strict adherence to regulations, warning that the EFCC would no longer tolerate criminal activities within the banking sector. “We are ready to work with the banks to clean up the system; but where there are criminal infractions, penal sanctions must follow,” Olukoyede stated, adding that banks had been complicit in some of the country’s most damaging financial crimes.
The EFCC’s chairman pointed to several illegal practices, including forex manipulation, fraudulent charges to depositors, and complicity in money-laundering involving politically-exposed persons. According to him, these activities have eroded trust in the banking sector and weakened Nigeria’s economy.
Olukoyede called on the CIBN to reinforce its oversight of the banking profession to help restore integrity to the financial system. He further noted that the EFCC would continue working with the banking sector to enforce anti-money laundering laws and protect the industry from internal and external cybercrime threats.
The EFCC’s resolve comes after earlier warnings in March when Olukoyede urged bank auditors to do more to uncover fraudulent activities within their institutions. At a retreat of the Association of Chief Audit Executives of Banks in Nigeria, Olukoyede highlighted that an estimated 70% of financial crimes in Nigeria were linked to the banking sector, often involving both insider and outsider elements working together.
His call for tighter scrutiny of bank activities was echoed by other experts. Dr. Olufemi Omoyele, of Osun State University commended the EFCC’s initiative, stating that banks had played a significant role in enabling financial crimes that have hurt the nation’s economy.
Project Director of the Accountability and Transparency Network, Biola Adewumi, also welcomed the move, calling for swift prosecutions of those responsible.
The renewed push by the EFCC coincides with an ongoing investigation into questionable foreign exchange transactions and forward contracts worth approximately $2.4 billion, flagged by the Central Bank of Nigeria (CBN). Its governor, Olayemi Cardoso revealed that law enforcement agencies, including the EFCC, were looking into the matter as part of a broader audit of the CBN’s foreign exchange dealings under the previous administration.
As the EFCC prepares to launch prosecutions against bank officials, the banking industry faces heightened scrutiny amid efforts to restore stability and growth to Nigeria’s troubled economy.
