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FRAUD AND ITS MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY (A CASE STUDY OF SOME SELECTED BANKS)

ABSTRACT

Banks in the country often capture the centre stage of public attention. It is

either banks are being accused for returning questionable level of

profitability particularly seen against the quality of bank services or banks

are collectively held responsible for any unintended consequences of fiscal

policies. Continued and sustained depreciation of the rate of exchange of the

Naira has been attributed to unpatriotic roles of the banks, notwithstanding

the glaring incidences of fiscal indiscipline and shortcomings on the part of

the Government and its agencies. In fact, the banks are ready whipping boys

to be held responsible for all manner of mal-practices and shortcomings of

policy instruments and programmes.

Recently, the incidence of frauds has got the attention of all and sundry and

has been the focus of government attention. The wave of this current

happenings in the financial sector, especially the banking sub-sector dictates

a worrisome pace and makes it an intractable problem of modern day

banking. That our banking industry would finally arrived at this impasse was

a matter of time. Bombarded by inside abuse, outsider scams,

customer/worker collusion and immense wastage, this supposedly enduring

edifice built on assumed unwavering trust has gone through a chaotic

metamorphosis in just under a decade.

From a solid seemingly unyielding financial edifice, we have through

avarice, greed and bad management witnessed some crashes that have

reverberated both on the populace and the government, such that

international confidence in Nigeria is now seriously eroded.

Fraud with its hydra-headed tentacles has over the past decade eaten deep

into our psyche, drained the banks, financial institutions and other

government organizations of their substance.

But is it true that all frauds are due to the activities of bank employees ? Are

these employees a special breed of Nigerians or are they a reflection of the

larger society ? Are bank employees because of their special training,

socialization and the controls in place expected to rise beyond the prevailing

level of probity in the society at large ?

There exists therefore a compelling need to examine ways of arresting,

detecting, preventing and controlling this ‘cancer’. These issues and answers

to the above recurring questions form the focus of this research work.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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