Governor Babajide Sanwo-Olu of Lagos State and experts in the financial system have charged chief audit executives of banks and other financial institutions to recommit themselves to ensure that fraudulent activities are detected and prevented before they escalate.

They spoke at the 2024 Annual General Meeting and Fraud Conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) in Lagos with the theme, “Fraud and Governance: Strengthening Institutional Frameworks in Nigeria.”

Among the speakers at the conference were Managing Director/CEO, Datapro, Abimbola Adeseyoju; Acting Head, Fraud Desk, NIBSS PLC, Oluwatosin Obadimu, among others.

Daily Trust reports that financial institutions in Nigeria lost N52.26 billion to fraud in 2024 according to the latest report by the Nigeria Inter-Bank Settlement System (NIBSS), which represents a significant increase of N34.59 billion compared to the N17.67 billion recorded in 2023.

Sanwo-Olu who was represented by the Special Adviser to the Governor, Office of Internal Audits, Lagos State, Dr. Oyeyemi Ayoola stated that a “Strong, fraud-resistant financial system is essential to driving economic growth, attracting investment, and creating jobs.”

He noted that financial fraud is changing rapidly, saying cybercrime, insider threats, digital payment vulnerabilities, and regulatory loopholes have made fraud more sophisticated than ever.

He said while criminals are getting smarter, “We must be smarter and faster in our response.

“As a former banker, I understand how critical internal controls, risk management, economic growth, attracting investment, and creating jobs. That is why this conversation is so critical…However, 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,” he added.

Datapro CEO speaking on “Role of Ethics and Transparency in Preventing Fraud” stated that there is an increase in the number of fraud both in number and amount.

He said fraud prevention cannot be word of mouth, saying audit executives must have a code of ethical standards which must be imbibed by all staff.

Chairperson of ACAEBIN, Mrs. Amah Aina said the theme “Underscores the urgent need to enhance governance structures, strengthen risk management practices, and fortify the mechanisms that protect our 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 said.