…As EFCC goes after top bankers over frauds
Tony Elumelu, group chairman of United Bank for Africa (UBA) Plc, has highlighted significant challenges facing Nigeria’s banking sector, including regulatory hurdles and high compliance costs, which he believes are impeding growth and innovation.
Elumelu spoke at the annual banking and finance conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.
This was as President Bola Tinubu, who declared the conference open, said the government was working to tackle Nigeria’s prevailing macroeconomic challenges by reducing inflation, stabilising the foreign exchange market and improving fiscal management.
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Represented by Vice President Kashim Shettima, Tinubu called for collaboration across all sectors, including the government, private industry, and civil society organisations to achieve sustained economic growth.
At the event, Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), announced that high-profile prosecutions were imminent for banks and top officials implicated in major financial frauds.
For Elumelu, to address the concerns about regulation, there was a need for constructive dialogue among government agencies, regulatory bodies, and banking institutions to foster a more collaborative environment.
“Our banking sector is a cornerstone of Nigeria’s economy. Its transformation over the last few decades is one of our success stories,” Elumelu stated. He praised the sector for employing millions, providing crucial financial support to businesses, and generating income for shareholders. However, he warned that these achievements are threatened by rising compliance costs and regulatory constraints.
Elumelu urged stakeholders to work together to build a more resilient banking sector that can drive economic growth and support the aspirations of Nigerians. He noted that the success of the Nigerian banking sector extends beyond the country’s borders.
“Nigerian banks have become multinationals, leading the sector across Africa and establishing themselves in the world’s financial capitals. They have changed how our country is perceived and set themselves up as role models for other industries,” he added.
In his keynote address titled, “Accelerated Economic Growth and Development: The State of Play and the Way Forward,” Elumelu outlined a strategy centred on three critical areas for shaping Nigeria’s economic future:
Supporting Elumelu’s views, Oliver Alawuba, group managing director of UBA Plc and chairman of the 17th annual banking and finance consultative committee, encouraged participants to transform the knowledge and strategies shared during the conference into tangible actions.
“Our collective future depends on the steps we take today to innovate, collaborate, and drive progress,” Alawuba stated. He urged all attendees to leave the conference determined to execute strategies that would build a financial sector capable of powering the economy, uplifting the people, and transforming the world.
Also speaking at the event, Olukoyede, the EFCC chairman, announced that high-profile prosecutions are imminent for banks and top officials implicated in major financial frauds. Olukayode revealed that the EFCC has completed extensive investigations into significant financial crimes, many of which have severely impacted Nigeria’s economy.
In a blunt address, the anti-graft agency chairman described the scale of the frauds as ‘mind-boggling,’ highlighting their detrimental effects on the nation’s financial stability.
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“Some of these frauds looked like an onslaught against the economy and done through the banking industry,” he stated.
He disclosed that the EFCC has gathered substantial evidence and is poised to take legal action against several banks and senior executives involved in these schemes.
The announcement comes amidst growing concerns about regulatory compliance and ethical standards within Nigeria’s banking sector.
The chairman emphasised that the forthcoming prosecutions are a critical step in restoring integrity and accountability to the financial system.
“We have compiled our documents, completed the necessary investigations, and are now ready to proceed with prosecutions,” he said.
He stressed the urgent need for enhanced professionalism and regulatory compliance within Nigeria’s financial sector.
He underscored that despite the Central Bank of Nigeria’s recent monetary policies aimed at economic stabilisation, its success hinges on the integrity and patriotism of financial sector operators. He warned that prioritising profit over national interest could erode economic progress.
“While the central bank’s policies are well-designed, their impact will be diminished if financial sector operators do not align their practices with national growth objectives,” the chairman said.
He criticised the prevalent disregard for regulations among financial institutions, noting that such behaviour undermines the sector’s integrity and damages the broader economy.
In response to these issues, the EFCC, he assured, is committed to helping sanitise the system, ensure rigorous enforcement of anti-money laundering laws and protect the sector from cyber threats, as he emphasized that serious criminal infractions will be met with legal consequences. “We will no longer remain passive. There will be no tolerance for impunity,” he asserted.
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“We need to take decisive action to ensure compliance and restore integrity within the financial system,” he stated.
The chairman urged financial sector professionals to reflect on their roles and commit to practices that support Nigeria’s economic growth.
Earlier, Pius Olanrewaju, president/chairman, CIBN, called for urgent introspection on Nigeria’s economic challenges, stressing the need for innovative solutions.
