The Managing Director, RPA Africa Limited, an investment company, Dr. Niyi Raji, has expressed displeasure over the rising level of fraudulent practices in the banking industry.
Raji told The Point that it was unfortunate that insider abuses, conversion of depositors’ money, fraudulent transfers and posting of fictitious credits had increased over the years among Nigerian banks.
According to the former General Manager of Access Bank Plc, it is unacceptable that banks in the nation are generally operating below standard, as they have not contributed meaningfully to the development of the economy.
He said, “A lot needs to be done to improve and professionally monitor loan application request to the desired end, to avoid diversion of funds based on the fast approaching political maneouvers for the 2019 election.
“Banks and their promoters must differentiate business from political business in order to reduce the exposure to another financial crisis. In the past, lots of loans meant to finance projects were diverted to political campaigns by some banks’ promoters.”
Raji also tasked the Central Bank of Nigeria to monitor loans and advances regularly, to avoid the issue of banks running into another liquidity crisis.
“The regulatory bodies must all be on the alert now, to avoid another round of mergers and acquisition by diligently and professionally offering the services they are made to provide. Training and re-training should be given to staff to adequately be abreast of changing banking practices in this modern time,”
he said.
According to him, banks’ staff should watch out for bogus transactions and diligently and carefully observe credit tenets as a guide to either recommend or disallow a transaction from the very beginning.
