Nigerian auditors advocate for enhanced institutional framework to tackle fraud

The Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) has called for an improved governance structure to enhance risk management practices and strengthen infrastructures to safeguard financial institutions.

Aina Amah, chairperson of ACAEBIN, stated this at the 2024 annual general meeting and fraud conference, which was held on Wednesday in Lagos on the theme ‘Fraud and Governance: Strengthening Institutional Frameworks in Nigeria. ’

“This gathering, a hallmark of our collective commitment to integrity, transparency, and corporate governance, comes at a critical time when financial institutions and regulatory bodies must work hand in hand to fortify our institutional frameworks against fraud and financial crimes,” she said.

Amah stated that this year’s theme emphasizes the urgent need to enhance governance structures, strengthen risk management practices, and fortify the mechanisms designed to protect the financial system.

“The evolving nature of fraud, fuelled by technological advancements and complex financial transactions, demands that we remain vigilant, innovative, and collaborative in our approach to combating financial malpractices,” she added.

Babajide Olusola Sanwo-Olu, Governor of Lagos State, represented by Oyeyemi Ayoola, Special Adviser to the Governor on Internal Audits, underscored the importance of Lagos’ unique position as the financial hub of Nigeria and West Africa.

“Governance is the foundation that holds everything together. Strong policies and regulations are important but leadership, transparency, and ethical decision-making are what truly sustain trust in our financial system.”

Sanwo-Olu emphasised that a strong, fraud-resistant financial system is essential to driving economic growth, attracting investment, and creating jobs.

“Financial fraud is changing rapidly, cybercrime, insider threats, digital payment vulnerabilities, and regulatory loopholes have made fraud more sophisticated than ever. Criminals are getting smarter, but we must be smarter and faster in our response,” he said.

Sanwo-Olu called for collective responsibility in tackling financial fraud, urging corporate leaders to enforce internal controls.

“This conference is a call to reinforce trust in our financial institutions, to uphold the integrity of our systems, and to ensure that governance remains the foundation of everything we do.”

Oliver Alawuba, chairman of the Board of Bank CEOs and the Group managing director/chief executive officer of United Bank for Africa (UBA) Plc, also noted that fraudulent activities are the by-products of governance failures.

“In Nigeria’s financial landscape, we have seen insider business, cyber fraud, identity theft, and regulatory breaches and these things are escalating because of one weak corporate governance framework, inadequate internal controls, and lack of real-time fraud monitoring and enforcement,” he said.