1.0 Introduction
It will not be easy to say exact date fraud began in Nigeria banking industry. However, we are going to have a look at dates of the establishment of the first two indegnous banks in nigeira as this will help us to trace theorigin of some loopholes which living bring about fraudulent practices in nigeria banking system. The national bank of Nigeria was established in 1945 and the Africa continental bank in the year 1947.
1.1 Background of the Study
Prior to 1952, there was no banking regulation to monitor the activities /operations of the commercial banks in the country as a result of this there was lapses in the banking system for instance, some banks got licence for operation but did not open one day for business some opened, collected money from their customers and vanished or wound up , due to these fraudulent acts. The first banking act was eracted to monitor the activities (operations of commercially banks in the country with the view to reducing banks fraud.
But it rather seemed to stimulate the occurrence of fraud in those banks because for the decade fraudulent practices have been on the increase and this call for a review or critical evaluation of some at the “Act” now we hear of cases of bank, been distressed , advance free fraud “419” and so many other fraudulent practices all in over banking industry.
1.2 Statement of Problem
Fraud is now a household work in Nigeria, because hardly can a day pass by in Nigeria without a reported case of fraud in our industries, especially the banking sector. This has brought a lot of worries to investors the government and other interest parties we now live in area of distrust among bank and their customers. The business times on January 8 1995 had it that “the rising incidence of the bank fraud has created a lot of distrust between bank and their customer”. More also there was a report in daily champion of January 9 1995, that a bid to defraud a bank f N1,000,000 failed, we also hared what happened In orient bank plc. Enugu cate 1999- infact the report seem endless and we cannot maintain all.
As a result of this issue of fraud day in and day out, the management of various banks are trying everyday to vise means of putting an end to bank fraud, while also some fraudulent staff and reinforcing themselves in the near future, it will have adverse effect on the general economy since most business cannot be effected without the bank acting as a mediator.
1.3 Objectives of Study
The purpose of this research is among other things.
- The determine if there are fraud in Nigeria Industry.
- To find out the causes of fraud in Nigeria banking industry
- To find out and discuss forms of fraud in Nigeria banking
- To have a work at the affects of fraud on the Nigeria banking industry in particular and the general public at large.
- To determine if there are legal loopholes in the Nigeria system that facilitates fraud.
- To suggest means of eliminating fraud in the banking industry in Nigeria.
- To determine staff involvement in Fraud in the Nigeria Industry.
1.4 Research Question
- Does fraud exit in the Nigeria Banking system?
- What measures has been applied to control or reduce the existence of fraud in Nigeria?
- What are the causes of fraud in Nigeria bank?
- What are effect of fraud in Nigeria banking system?
1.5 Significance of the Study
This research work is significant with the following ways:
- This work serve as oasis for further researcher in this case of study.
- It is on contribution to knowledge in this area of fraud in Nigeria banking is on banking performance and development generally to improve through surveying.
- The qualification necessary to improve performance through surveying.
- The work will throw height or how to plan strategically in other to improve banking performance for easy actualization of banks objectives at the end.
1.6 Scope of the Study
The Scope of the study is on the input of bank fraud on banking economic growth and development in Nigeria with a reference point on first bank only.
1.7 Limitation of the Study
It would have been best to make this investment in all the banks and other banks financial institution in the country in pursuit of excellent and the achievement of the best possible result. But it is difficult to reach such large population.
In view of this , such as finance, time constrainer it has been limited to a particular firm in the banking industry i.e orint Bank Enugu. Although most Analysis carried out many incorporate other banks and financial institution as the case may be.
1.8 Definition of Terms
1. Banker:
A banker may be defined as a place where money and other valuable securities like gold, deeds, will etc are kept for safe custody.
2. Fraud:
It is a conscious premeditated act of a person or group of person with the intention of altering the fact for selfish or personal monetary gain.
3. Scope:
It is a range of action or observation.
4. Liquidation:
This is the selling of the asset of a business as part of the process of dissolving the busines.
5. Forgery:
This is the act of making or altering a writing or signature purporiting to be made by another, the false making ormaterial alteration of or addition to a written instrument for the purpose of deceit and fraud.
6. NDIC:
This is an acronym for Nigeria deposit insurance corporation. It is specially charged with the responsibility of protecting depositors by insuring customers deposits of the tune of N200,000.
7. Population:
A count of the number of resident within a political or geographical boundary.
8. Management:
The executives of an organisation especially senior executives.
9. Segregation:
The setting apart or separation of things or people, as a natural process, maner of organizing people, it may be voluntary or enforced by law.
10. Duty:
A period of time spent at work or doing a particular task. It is also that which is morally or legally obligated to do.
