Market News

By Jide Ajia

The Chartered Institute of Bankers of Nigeria has issued a stern warning to financial institutions regarding the surge in insider-related fraud, calling for an urgent return to ethical standards in recruitment and operations.

Speaking at the 2026 Annual General Meeting of the CIBN Lagos State Branch, the President and Chairman of Council, Pius Olanrewaju, linked the growing threat of cybercrime to a “paradigm shift” where banks now prioritise deposit targets and social connections over the character and integrity of prospective employees.

“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,” Olanrewaju stated.

The CIBN President revealed that the industry continues to suffer heavy losses due to a dangerous collaboration between bank insiders and external criminal networks. Highlighting a recent surge in high-profile breaches, he noted that billions of naira were syphoned from two banks in just a fortnight, a trend he attributed to a “rush for quick wealth” among young professionals. He emphasised that the era of thorough background checks and educational verification must be restored to safeguard public confidence in the financial system.

“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 added.

Despite these ethical concerns, the institute expressed optimism regarding the ongoing Central Bank of Nigeria recapitalisation exercise. Olanrewaju commended the apex bank for its structured approach and the 24-month implementation period, which allowed banks to align with international, national, or regional categories at their own pace.

Meanwhile, the Lagos State Branch of the CIBN posted a strong performance for the 2025 financial year, as total net assets rose to N264.3m and net surplus reached N10.4m, reflecting the branch’s leading role in membership growth and professional capacity building.

“The key is identifying the business units where AI can accelerate productivity and transform decision-making,” Olanrewaju noted, while further urging banks to treat customers as partners in growth rather than mere targets for profit.