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How Nigerian banks lost N42.6bn to scam in 3 months
Nigerian commercial banks have suffered a massive loss of N42.6 billion to fraud within just three months, according to a report released by the Financial Institutions Training Centre (FITC).
The report covers the period from April to June 2024 and reveals a sharp surge in fraudulent activities across banking platforms, marking a significant increase from previous quarters and years.
In comparison, Nigerian banks lost N9.4 billion to fraud throughout the entire year of 2023. The Q2 2024 loss of N42.6 billion represents an alarming 8,993 per cent increase compared to the N468.4 million lost in Q1 2024.
FITC’s report highlights a dramatic rise in fraudulent activities, with various channels, including ATMs, online platforms, bank branches, and point-of-sale terminals, being exploited.
FITC’s data indicates that miscellaneous and other types of fraud accounted for 96.46 per cent of the total losses, amounting to N41.14 billion.
This category dwarfs the losses from fraudulent withdrawals and computer/web fraud, which amounted to N781.2 million and N400.7 million, respectively.
The FITC report, based on fraud returns from 28 deposit money institutions, shows that 80 cases were reported during Q2, with a significant jump in the amount involved.
The sum involved in fraud cases rose by 1,784 per cent, from N2.9 billion in Q1 to an estimated N56.3 billion in Q2.
Computer and web-related fraud saw a 1,560 percent increase in losses, surging from N24 million in Q1 to N400.8 million in Q2. Despite the overall rise, card fraud decreased by 47.66 percent, dropping from 21,469 incidents in Q1 to 11,237 in Q2.
Meanwhile, fraudulent activities involving cheques and cash increased by 36.67 percent and 9.09 percent, respectively.
In terms of channels, bank branches experienced the most significant spike, with losses skyrocketing by 31,497 percent from N133.9 million in Q1 to N42.2 billion in Q2 2024.
However, mobile fraud recorded a decline, with losses decreasing by 59 percent from N216.4 million in Q1 to N88.7 million in Q2.
With these startling figures, the FITC urged Nigerian banks to strengthen their monitoring and auditing procedures.
“Banks should enhance their monitoring systems by utilising AI-driven tools that can flag unusual entries or patterns,” the Centre advised.
They recommended that continuous, automated systems be implemented to detect anomalies in settlement files.
To mitigate further risks, the FITC suggested restricting access to sensitive settlement files to a small, vetted group of personnel trained in the latest security protocols.
“Multi-factor authentication and role-based access controls are essential in reducing the risk of unauthorised access or changes to these files,” the Centre added.
As banks grapple with these alarming losses, FITC emphasised the importance of regular, unannounced internal audits. The audits should focus on settlement processes to promptly identify and address any irregularities.
The recent surge in fraud has sharply highlighted Nigeria’s banking sector’s vulnerability to evolving security threats.
The Centre’s recommendations serve as a crucial roadmap for banks to improve their resilience and curb the rising trend of financial fraud.
News
Northern Senators hold closed door meeting on Tax Reform Bills
Northern Senators convened a closed door meeting on Thursday, lasting over two hours, following the Senate’s passage of the contentious Tax Reform Bills for a second reading.
The closed-door session, held in Room 301 of the National Assembly Complex, was announced during the day’s plenary, igniting speculation about the agenda.
However, Senator Abdulaziz Yar’Adua, Chairman of the Northern Senators Forum, refrained from divulging the details of their deliberations.
The Tax Reform Bills, which include significant changes to Nigeria’s fiscal landscape, have drawn considerable attention. Earlier in the day, the Senate instructed its Committee on Finance to organize a public hearing involving state governors, the Governors Forum, traditional rulers, and other key stakeholders. The committee is expected to present its findings and recommendations within six weeks.
During plenary, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) spearheaded discussions on the bills, emphasizing their importance for modernizing the nation’s tax framework. The four bills include:
The Nigeria Tax Bill 2024 – designed to establish a comprehensive fiscal framework for taxation in the country.
The Tax Administration Bill – aimed at providing a unified legal structure for all taxes in Nigeria while minimizing disputes and ambiguities.
The Nigeria Revenue Service Establishment Bill – which seeks to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service for improved efficiency in tax collection.
The Joint Revenue Board Establishment Bill – intended to create a tax tribunal and a tax ombudsman to resolve disputes and enhance accountability in revenue management.
The Senate described the reform bills as critical to ensuring sustainable revenue generation and streamlining tax administration. Lawmakers highlighted the need for robust engagement with stakeholders to address potential concerns and ensure a fair and inclusive tax system.
However, the Northern Senators’ meeting has raised questions about whether regional interests or specific provisions within the bills influenced the closed-door discussions. The region’s lawmakers have previously expressed concerns about the disproportionate fiscal burdens placed on states with lower internally generated revenues, often reliant on federal allocations.
Observers are keenly watching for outcomes from the public hearing and the Senate Finance Committee’s report, as the Tax Reform Bills could significantly reshape Nigeria’s fiscal policies and their impact on citizens and businesses.
News
Just in: Military Detains Investigative Journalist, Fisayo Soyombo
Nigerian investigative journalist, Fisayo Soyombo, has been reportedly arrested and detained by the 6 Division of the Nigerian Army in Port Harcourt, Rivers State.
The arrest, which took place three days ago, was confirmed by the Foundation For Investigative Journalism (FIJ) on its official page on Friday morning.
It was gathered that Soyombo’s detention may be linked to his work exposing corruption and smugglers aided by Nigerian Customs Services.
The FIJ has called for his immediate release and raised the alarm over the increasing threats to press freedom in the country.
Soyombo, known for his investigative reporting on high-profile issues such as corruption, abuse of power, and human rights violations, has previously faced various threats and harassment.
“The 6 Division of the Nigerian Army in Port Harcourt has been detaining our founder ‘Fisayo Soyombo 3 days running. Journalism is not a crime,” FIJ said.
Earlier in November, the media had reported that Soyombo released more videos to establish his smuggling allegations involving Nigerian Customs Service (NCS) officers.
Fisayo, in a statement issued on his verified social media handles, had alleged that Nigerian customs officers had conspired with Adeyemi Habeeb Abdulganiy, an alleged multi-billionaire-naira smuggler better known as Abuga, to illegally pass about 2000 cars and smuggle in bags of rice into the country.
He had said the illegal operation was slated to take place on Sunday, 10th of November, 2024.
The journalist wrote: “All is set. Your men, working with Adeyemi Habeeb Abdulganiy, the multi-billionaire-smuggler better known as Abuga, are primed to pass more than 2,000 cars containing at least 65 bags of rice each from Bebe in the Benin Republic into Sango, Nigeria.
“Some of these cars will enter Sango from the toll gate by driving against traffic, consequently endangering lives, while some will gain entry into Sango through Ifo; others will use the Oju-Ore-Ota route.
“Road users in Sango can expect traffic congestion early tomorrow morning unless this post prompts an about-face from the actors. I understand as well that soldiers from the 192 battalion at Owode will be patrolling during the journey to prevent any resistance.
“So, @CustomsNG, just so you know, the people are watching; they will be hysterically laughing at you when you announce “seizure of one million bags of rice and 25 cartons of guns” later this week.”
However, the Nigerian Customs Service (NCS) National Public Relations Officer, Abdullahi Aliyu Maiwada, said that Fisayo’s claims were fictitious.
He had said it was illogical for anyone to believe their personnel were involved in the illegal operation.
In his another post, Fisayo had released two more videos to substantiate his smuggling allegations against the customs officers.
He said: “Since Maiwada considers my revelations ‘tales by moonlight’, I am supplying two more video evidence of smuggling-ready rice cars merely awaiting final clearance from rogue Customs officers.”
“If, after this, Maiwada still considers my revelations fictitious, I’m happy to share more videos with you. I’m just trying to be useful to you, so you can in turn be useful to Nigerians rather than your pockets,” the journalist added.
News
NYSC Updates Redeployment Rules for Married Female Corps Members
The National Youth Service Corps (NYSC) has announced a significant update to its redeployment policy for married female corps members. Going forward, changing one’s maiden name to the spouse’s name will no longer be a requirement for concessional deployment or relocation.
This was disclosed in a circular signed by the NYSC Director of Corps Mobilization, Abubakar Mohammed. The document, dated November 25, 2024, was addressed to state coordinators, Federal Capital Territory (FCT) coordinators, and other relevant officials.
Details of the New Policy
The circular, titled “Review of Criteria for Concessional Deployment/Relocation for Married Female Corps Members”, outlined the approved revisions to redeployment criteria.
Key directive:
Married female corps members seeking relocation will no longer need to adopt their spouse’s surname to qualify for redeployment.
The memo further emphasized that all other existing requirements for redeployment remain unchanged and must be adhered to.
Ensuring Compliance and Monitoring
The NYSC has mandated state and FCT coordinators to strictly comply with this updated directive. Directors in area offices have also been tasked with monitoring the policy’s implementation to ensure consistency nationwide.
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