The Chartered Institute of Bankers of Nigeria (CIBN) has raised concerns over rising insider-related fraud in the banking sector, warning that weakening ethical standards in recruitment and operations is exposing financial institutions to greater risks. It called for urgent reforms to restore professionalism, integrity, and public confidence in the industry.
Speaking at the 2026 Annual General Meeting of the CIBN Lagos State Branch, the President and Chairman of Council, Pius Olanrewaju, said hiring practices in the sector are increasingly driven by deposit mobilisation and personal connections rather than competence and character.
“Today, the parameter for employment seems to have shifted. If you can bring in deposits or have connections, you are employed without proper scrutiny. That paradigm shift is giving us problems,” he said.
He warned that this trend is weakening internal controls and increasing exposure to fraud, especially through collaboration between insiders and external criminal networks.
Olanrewaju expressed concern over repeated financial crimes in the sector, noting that banks have suffered significant losses linked to insider involvement and cyber-enabled fraud.
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“We are too much in a hurry. People now want to make money quickly without understanding that wealth built without integrity can collapse in a minute,” he said.
He stressed the need to restore strict background checks, verification processes, and ethical discipline in recruitment and operations.
According to him, rebuilding integrity is essential to maintaining trust in the banking system and ensuring long-term financial stability.
He also referenced ongoing Central Bank of Nigeria recapitalisation reforms, commending the structured approach and transition timeline provided for banks to comply.
He said while recapitalisation strengthens capital buffers, it cannot replace ethical discipline and sound governance.
Olanrewaju further urged banks to adopt technology, including artificial intelligence, to improve efficiency, while also rethinking their relationship with customers as partners rather than profit targets.
He maintained that the banking sector’s future depends on ethics, accountability, and institutional discipline, warning that regulatory reforms alone are not enough.
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