Oliver Alawuba, Chief Executive Officer (CEO) of the United Bank for Africa (UBA), has tasked the financial sector’s regulators like the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), the Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM), to slam “harsher” penalties on financial firms that fail to enforce internal fraud controls.
Alawuba made this known in Lagos on Wednesday, March 12, 2025 at the 2024 annual general meeting and fraud conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), themed, ‘Fraud and Governance: Strengthening Institutional Frameworks in Nigeria’.
The CEO said fraudulent activities in Nigeria’s financial sector are increasing due to weak corporate governance, insufficient internal controls, and the lack of real-time fraud monitoring and enforcement.
Alawuba, who is also the chairperson of the body of banks’ CEOs, said financial institutions remain prime targets for fraud, emphasising the urgent need for decisive action.
“We need to fortify our governance structures to protect the present and the future of our financial institutions,” Alawuba said.
“The fight against fraud is not a one-man battle, one-bank battle. It is an ecosystem approach. We need to attack it at all levels.”
To combat fraud in the financial sector, the CEO said banks’ boards and executive management must set a tone of zero tolerance for fraudulent activities.
He also urged banks to invest in predictive fraud detection technologies such as artificial intelligence, machine learning, and real-time transaction monitoring.
“Internal audit functions must be truly independent. Whistleblowers’ protection, surprise checks, and continuous monitoring,” Alawuba said, making recommendations on fraud prevention.
“Regulatory enforcement and accountability. Fraud must carry severe consequences. Regulators must impose harsher penalties on financial institutions that fail to enforce internal fraud controls.”
Alawuba proposed the creation of an anti-fraud information-sharing platform to enable banks to collaborate in identifying emerging threats, alongside nationwide fraud awareness campaigns.
In addition, he revealed that bank executives are working on a proposal to the CBN aimed at improving fraud control within Nigeria’s instant payment system while maintaining efficiency.
