The study examined fraud in the Nigerian banking sector. Ex-post facto research design was adopted for the study. Data for the period 2006-2015 were collected from Nigeria Deposit Insurance Corporation (NDIC) annual reports. Data relating to fraud, bank profit, bank assets and bank deposits were collected. Descriptive analysis and Ordinary Least Square (OLS) method of regression analysis were used for the data analysis. It was discovered that fraud has negative but insignificant relationship with bank profit amongst others. This implies that even though as bank fraud increases, bank profit increases, but the amount of fund involved in fraud does not significantly affect bank profit. We recommend amongst others that banks should include the amount involved in fraud in their financial statements and entrench good corporate governance (Fraud Box Model) as the key to lock the fraud -risk factors as contained in fraud diamond.
Abdurasheed, A., Babaita, I. S.M & Yinusa, M. A. (2012). Fraud and its implication for bank performance in Nigeria, International Journal of Asian Social Science 12(4), 382-387
Adediran, S., & Olugdenga, E. (2010). Impact of fraud on banks’ performance in Nigeria, The Nigerian Academic Forum 19(1).
Ademoye, K. A. (2012). Frauds in Nigerian banks: Nature, deep-seated causes, aftermaths and probable remedies, Doi:10.5901/mjss.2012.v3n2.279.
Adeniji, A. A. (2012). Auditing and Assurance Services, Revised Edition. Lagos. Value Analysis Consult.
Afayi, T. (2014). The effect of fraud on the performance of banks in the United States of America, https//www.academia.edu/7707784/the_effect_of_...April 8.
Aguolu, O. (2008). Fundamentals of Auditing. Enugu. Institute of Development Studies University of Nigeria, Enugu Campus.
American Institute of Certified Public Accountants (AICPA), (2002). Statement of auditing standards 99 consideration of fraud in financial statement audit. New York, NY: American Institute of Certified Public Accountants.
Andi, M. (2012). What’s your fraud IQ? Journal of Accountancy
Aruomoaghe, J. A., & Ikyume, J. C. (2013). Accounting for fraud in Nigeria: The banking sector in focus, International Journal of Research in Management 3(6), 59-73.
Central Bank of Nigeria. (2014). Statistical bulletin.,25.
Comer, M. J. (1985). Corporate fraud, London, McGraw-hills Company (UK) Limited.
Cressey, D. R. (1971). Other peoples’ money: A study in social Psychology of embezzlement. Glencoe, Free Press.
Dada, S. O., Owolabi, S. A., & Okwu, A. T. (2013). Forensic accounting a panacea to alleviation of fraudulent practices in Nigeria, International Journal of Business, Management, Economics and Research 4(5), 787-792
Economic & Finanacial Crimes Commission (EFCC) Establishment Act. (2004).
https://efccnigeria.org/efcc/index.php/about-efcc/the-establishment-act.
Ejike, E. (2014). Nigeria ranks 136th most corrupt country in latest global corruption index. Leadership.ng/…/NigeriaRanks-136th … Dec.4.
Fraud Awareness. (n.d). Northwesterstate University of Louisiana, office of internal audit and ethics liaison. https://internalaudit.nsula.edu/fraud awareness. Accessed 26/04/16
Gbegi, D. O., & Adebisi, J. F. (2014). Forensic skills and techniques in fraud investigations in the Nigerian public sector, Mediterranean Journal of Social Sciences 5(3), 243-252.
Ikpefan, O. A. (2006). Growth of bank frauds and impact on Nigerian banking industry
Enprint.convenantuniversity.edu.ng/1316/1/fraud.pdf.
Imoniana, J. O., Antunes, M. T. P., & Formgoni, H. (2013) Forensic accounting and corporate fraud, Journal of Information Systems and Technology Management 10(1).
Inaya, L., & Isito, E. O. (2016). An empirical analysis of social impact of fraud on the Nigerian banking industry, Research Journal of Finance and Accounting 7(4), 12-17.
Kanu, S. I., & Okorafor, E. O. (2013). The nature, extent and economic impact of fraud on bank deposits in Nigeria, Interdisplinary Journal of Contemporary Research in Business 4(9), 253-265
Kasmu, A. S. (2009). The relevance of Forensic Accounting to financial crime in private and public sectors of third world economies: A study from Nigeria. Proceedings of the 1st international conference on the governance, fraud, ethics and social responsibility, June 11-13, http://ssrn/com/abstract=1384242.
KPMG. (2009). Fraud survey 2009: Integrity survey. http://www.kpmg.com/aci/docs/insights/21001NSS fraud survey 082409.pdf Accessed 26/04/16.
Meigs, W. T., Larsan, E. J., & Meigs, R. F. (1977). Principles of auditing, 6th edition. Homewood, Illinois. Richard D, Irwin Inc.
Millichamp, A., & Taylor, J. (2012). Auditing, 10th edition. China. RR Donnelley .
Modugu, K. P., & Anyaduba, J. O. (2013). Forensic accounting and financial fraud in Nigeria: An empirical approach, International Journal of Business and Social Sciences 4(7), 281-288.
Nigerian Deposit Insurance Corporation (NDIC) Annual Reports
In-Text Citation: (Udeh & Ugwu, 2018)
To Cite this Article: Udeh, S. N., & Ugwu, J. I. (2018). Fraud in Nigerian Banking Sector. International Journal of Academic Research in Business and Social Sciences, 8(5), 585–603.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
