“EFCC Blasts Nigerian Banks: ‘Stop Gambling With Depositors’ Money!’”
By Paul Ebi
The Chairman of the Economic and Financial Crimes Commission, Ola Olukoyede, has issued a strong warning to Nigerian banks, cautioning against the dangerous practice of granting loans without credible collateral—an approach he says is fueling insider abuse and rising non-performing loans.
The warning came during a high-level engagement with officials of First Bank of Nigeria, led by its Chief Audit Executive, Mufutau Abiola, who visited the EFCC’s Lagos Zonal Directorate 2 in Ikoyi.
Speaking through the Acting Zonal Director, Bawa Kaltungo, Olukoyede did not mince words as he described current lending practices in some banks as deeply flawed and risky.
“We have issues with banks’ mode of giving loans. The process often shows insider abuse,” he stated.
“Personal Guarantees Are Not Security”
The EFCC boss expressed particular concern over loans backed solely by personal guarantees—even those issued by top executives—warning that such arrangements lack real security and expose depositors’ funds to serious risk.
According to him, so-called “top-down loans,” where influence replaces due process, are a ticking time bomb within Nigeria’s financial system.
“You cannot give a loan based solely on the personal guarantee of the Chief Executive. This is not security,” he stressed.
Depositors’ Funds at Risk
Olukoyede reminded banks that they are merely custodians of public funds, not owners, warning that reckless lending practices amount to tampering with depositors’ money.
He emphasized that enforcing strict collateral requirements would significantly reduce the growing burden of bad loans in the banking sector.
Call for Stronger Due Diligence
Beyond collateral, the EFCC also called for tighter background checks on borrowers, urging banks to strengthen due diligence processes—even when outsourced.
“There must be a clause of liability,” he noted, signaling that accountability must be enforced at every stage of loan approval.
EFCC Seeks Deeper Collaboration
Reaffirming its commitment to tackling financial crimes, the Commission urged banks to cooperate fully with investigations, particularly in cases involving suspected insider misconduct.
Olukoyede made it clear that financial institutions must promptly release staff members invited for questioning, stressing that collaboration is key to staying ahead of increasingly sophisticated financial crimes.
“Where money is, that is where people’s hearts are,” he added, hinting at the deep-rooted motivations behind financial misconduct.
Banks Respond
In response, First Bank’s Chief Audit Executive, Mufutau Abiola, expressed appreciation for the engagement, describing the visit as a step toward strengthening cooperation between the banking sector and anti-corruption authorities.
Why This Matters
This warning has sparked fresh concerns about the safety of depositors’ funds and the integrity of Nigeria’s banking system. With insider abuse now openly acknowledged by regulators, many Nigerians may begin to question:
Are banks truly protecting customers’ money?How many loans are influenced by power rather than policy?
Could stricter enforcement reshape the financial system—or expose deeper scandals?
The EFCC’s stance sets the stage for what could become a major crackdown on reckless banking practices in Nigeria.
