Nigeria Banks fraudulent cases in 2014 hits 25.6Bn

The Deposit Money Banks (DMBs) in the country recorded an increase in fraudulent cases in 2014, with N25.61 billion involved. The fraudulent cases also rose from 3,786 in 2013 to 10,612 cases in 2014, according to the 2014 annual reports of the Nigerian Deposit Insurance Corporation (NDIC), made available the journalists yesterday.

Central Bank of Nigeria

Central Bank of Nigeria

According to the report, “The DMBs reported 10,612 fraud cases in 2014 compared with 3,786 cases reported in 2013, representing an increase of 182.77%. In the same vein, the amount involved increased by N3.81 billion or 17.5% from N21.80 billion in 2013 to 25.61 billion in 2014.

Also the expected/actual loss increased from N5.76 billion in 2013 to N6.19 billion in 2014.’ The increase of 7.57 percent in expected/actual loss in fraud and forgeries, according to the corporation, was mainly due to the astronomical increase in the incidence of web-based (online banking)/ATM and fraudulent transfer/withdrawal of deposit frauds.

Similarly, it disclosed that the litigation in respect of the revocation of the licence of Peak Merchant Bank Ltd was yet to be resolved as at December 31, 2014, noting that the total number of closed DMBs increased to 49 in 2014 from 48 in 2013, while the number of banks in-liquidation increased to 46 in 2014 from 45 in 2013.

The increase, NDIC stressed, was due to revocation of the operating licence of African International Bank (AIB) Ltd by the Central Bank of Nigeria (CBN).

Stating that the CBN revoked the licences of 84 Microfinance Banks (MfBs) in the year under review, it said: “Following that development, the number of MfBs in-liquidation increased from 103 in 2013 to 187 in 2014. While the NDIC had since commenced the liquidation activities of the 84 MfBs recently closed, the liquidation activities of the 103 MfBs whose licences were revoked by CBN in September 2010 continued.”

As at 31st December, 2014, it stated that the locations of eight MfBs out of 103 micro banks closed in 2010 could not be traced, indicating that the NDIC had successfully closed 95. Following the closure of 21 Primary Mortgage Banks (PMBs) in November 2014, by the CBN, it said the corporation has commenced the liquidation activities of five out of 23 PMBs closed in 2012 as the remaining 18 could not be located at their last known addresses.

During the year under review, NDIC said it continued with the payment of insured deposits to depositors of the closed 48 DMBs, paying a total of N6.832 billion to 529,046 insured depositors as at 31st December, 2014 as against N6.824 billion to 528,277 insured depositors as at 31st December, 2013.

The NDIC, it said, equally paid insured deposits of closed MfBs in 2014 through the Agent Banks. “A cumulative payment of N2.772 billion had been made to 80,178 verified depositors of closed MFBs in 2014 as against N2.524 billion paid to 75,571 verified depositors in 2013.

The NDIC continued with the payment of insured deposits to depositors of closed PMBs in 2014, a cumulative payment of N2.02 million had been made to 30 verified depositors of closed PMBs in 2014,” it pointed out.

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