Why Nigerian banks sacked 93 employees in 2023, details emerge

• Nigerian banks recorded about 318 cases of insider fraud, accounting for a loss of N10.7 billion in the last year
• One of the old-generation banks reported that a staff member stole N44 billion within two years
• A report said the top three most common forms of fraudulent activity include computer/web, mobile, and PoS-related fraud

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Nigerian banks dismissed about 93 employees for fraud-related cases last year.

Fraud losses of about N10.7 billion were reported in the Nigerian banking industry between 2023 and 2024.

Nigerian banks report 318 cases of insider fraud, sack 93 employees in one year Credit: NurPhoto/Contributor
Source: Getty Images

Bank staff steal N44 billion in two years

Data from the Financial Institutions Training Centre (FITC) disclosed that Nigerian banks recorded about 318 cases of staff collusion in fraud during the period under review.

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Per the report, internal fraud in the Nigerian banking system has risen in recent years.

According to a BusinessDay report, a staff of a tier-1 bank reportedly stole N44 billion over two years.

The bank said in a letter written to the Lagos State Police Commissioner that it drew the attention of the state police command to fraudulent transactions within and outside the bank and requested the police set up an investigation to unravel the circumstances behind the fraud and apprehend the culprits.

Nigeria’s central switch system, the Nigeria Interbank Settlement System (NIBSS), recently noted that fraud through Internet banking rose by 325% between 2022 and 2023 due to a commercial bank's N2.4 billion internal fraud on corporate accounts.

Insider fraud cases rise to 318

Reports say about 74,978 fraud cases were recorded in the past year. 

Also, insider fraud involvement amounted to 318 cases, and outsider involvement was 67,712 during the review period, showing the rising threats from external sources on the financial system.

FITC received its data from 24 commercial banks and financial institutions.

Top three sources of fraud

The report said the top three most common forms of fraudulent activity include computer/web, mobile, and PoS-related fraud.

Experts believe that fraud cases have surged recently due to the massive adoption of digital payment channels and platforms.

In its fraud report for 2023, NIBSS revealed that fraudsters successfully scammed 80,658 bank customers within the year. Mobile channels became the most vulnerable to fraudsters.

Experts urged financial services companies and banks to be transparent in reporting incidents of fraud as a deterrent to criminals.

Banks raise interest rates on savings accounts

Meanwhile, Nigerian banks have announced new interest rates on savings accounts.

Commercial banks in Nigeria are expected to make critical changes to customers’ savings accounts in the coming quarter to prevent them from being eroded by inflation. 

Nigeria’s inflation rate hit an all-time high of 31.70% in February 2024, one of the highest in Africa. 

Analysts say the Central Bank of Nigeria (CBN) will take critical steps to protect customers' funds from inflation by raising the Monetary Policy Rate (MPR), the second since Olayemi Cardoso, the CBN’s boss, assumed office.

11 banks with the highest staff salaries

Legit.ng previously reported that Access Holdings and FBN Holdings recorded the highest staff salary costs for their workers compared to other commercial banks in the first nine months of 2023.

Staff expenses include the company's expenditures concerning staff remuneration and welfare in a specific period, including salaries/wages and other benefits like health insurance, pensions, and training.

Source: Legit.ng