NIGERIA Deposit Insurance
Corporation has said that the
reported cases of frauds, forgeries
and outright theft involving bank
staff declined by 48.12 percent
from N18.02 billion in 2015 to
N8.68 billion in 2016, while
the actual losses to the nation’s
banking industry dropped by
24.29 percent from N3.17 billion
in 2015 to N2.40 billion in 2016.
According to a statement, the
NDIC Managing Director/Chief
Executive, Alh. Umaru Ibrahim
who disclosure while delivering
a lecture: “The Role of NDIC
in Mitigating Corruption in the
Nigerian Banks” at the general
meeting of the Abuja Chapter
of the Alumni Association of
the National Institute (AANI)
said the level of attempted cases
of frauds and forgeries also
declined by N0.329 billion or
11.94 percent from N2.756 billion
in March 2017 to N2.427 billion in
June 2017.
Represented by a Deputy
Director in Research, Policy
and International Relations
Department, Mr. Hashim I.
Ahmad, the NDIC boss also
stated that although reported
cases of fraud and forgeries rose
by 36.42 per cent from 12,279
cases in 2015 to 16,751 cases in
2016, the reduction in the rate of
successful fraud incidences and
actual losses was an indication
of improved regulatory/
supervisory oversight, increased
vigilance by banks and the
deployment of improved
security architecture in the
banking industry.
He attributed the factors breeding
corruption in Nigerian banks
to poor corporate governance,
infractions in foreign exchange
operations, cumbersome legal
process and lack of effective
sanctions of offenders, amongst
Ibrahim reiterated that the
NDIC in conjunction with the
Central Bank of Nigeria (CBN)
continuously supervise the banks
to ensure their strict adherence
to sound corporate governance
practices. He added that issues
bordering on unethical financial
practices and the resolution of
conflicts between customers and
their banks were being addressed
by the Bankers Committee.
The NDIC boss also noted the
rising trend in the level of banks’
non-performing loans (NPLs)
and stated that the NDIC had
recommended the prohibition
of Directors of licensed banks,
including microfinance banks
(MFBs) and primary mortgage
banks (PMBs) from obtaining
credit facilities from their
respective banks.

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