NCJ Number
189264
Journal
Journal of Financial Crime Volume: 8 Issue: 3 Dated: February 2001 Pages: 265-275
Date Published
February 2001
Length
11 pages
Annotation
This article discusses the various causes of bank fraud in Nigeria and suggests various possibilities for helping to curtail it.
Abstract
In recent years, the volume and frequency of fraudulent practices in Nigerian banks have been on the increase. The growing scope and scale of fraud in the Nigerian banking industry is not surprising, given the rising profile of the country as a corrupt and fraudulent nation. Pre-independence bank fraud, prevalent among indigenous banks, was made possible by the absence of rules governing the practice of banking at the time. The Structural Adjustment Program (SAP) of 1986 was designed to achieve balance of payment viability by altering and restructuring the production and consumption patterns of the economy. However, the post-SAP bank fraud of the 1990's occurred when the government deregulated the licensing of banks. This resulted in a sharp increase in the number of registered banks and increased competition in the industry. The post-SAP bank fraud occurred when there were rules governing almost all facets of banking, therefore regulation alone could not curtail bank fraud in Nigeria. To tackle fraud in the banking industry of Nigeria successfully, the level of fraud and corruption in the wider society will have to be greatly reduced. This entails the need to change the attitude of most Nigerians towards fraud. If fraud is to be effectively combated in the industry, there is a need for the provision of a conducive macroeconomic and political environment for banking operations and the availability of competent regulators. 63 references.