Olukoyede issued the warning recently when he received the Chief Audit Executive of First Bank Plc, Mufutau Olawale Abiola, who led a delegation on a courtesy visit to the Lagos Zonal Directorate 2 of the Commission in Ikoyi.

Speaking through the Acting Zonal Director, Lagos Zonal Directorate 2, Ikoyi,  Assistant Commander of the EFCC,  ACE 1 Bawa Usman Kaltungo, Olukoyede expressed grave concerns over how banks in the country grant loans, noting that loans backed only by personal guarantees, including those of top executives, are inadequate and put depositors’ funds at risk.  He said: “We have issues with banks’ mode of giving loans. The process often shows insider abuse.”

While emphasizing  that banks should desist from issuing loans without visible or credible collateral, he added that “Top-down loans are not secured. You cannot give a loan based solely on the personal guarantee of the Chief Executive. This is not security. Banks must not issue loans without verifiable collateral. If there is proper collateral for loans obtained by bank customers, this will reduce the rate of non-performing loans.”

He further warned that a bank is only a custodian, and that giving loans without adequate collateral “amounts to tampering with depositors’ funds.”   He also urged banks  to implement measures, including thorough due diligence on its customers, to prevent loan defaults.

According to him, “ Even in situations where you outsource due diligence, there must be a clause of liability,” he said.

Reaffirming the Commission’s commitment to continued cooperation with the bank in tackling financial crimes, he urged the bank to release its staff promptly when invited during investigations of alleged financial crimes.

“When we invite your staff, especially where insider connivance is suspected, you must release them so we can jointly fight economic and financial crimes. We must work together to stay ahead of criminals. Let me add that where money is, that is where people’s hearts are. Most of the time, we escalate issues to foreign security agencies as may be necessary,” he added.

Earlier, Abiola  expressed gratitude to the EFCC leadership for the engagement, noting that the visit was intended to strengthen the existing collaboration between the bank and the Commission.

While urging  the EFCC to expedite investigations into cases involving its staff and others, Abiola also disclosed that a designated team in his bank  handles requests from the EFCC.

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By NKECHI NAECHE- ESEZOBOR–The Central Bank of Nigeria (CBN), on Monday warned the general public to dessert from engaging with individuals and groups involved in fictitious offers of contracts, loans, grants, intervention funds, and other financial benefits allegedly issued by the CBN.

In a statement issued on Monday by the CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi-Ali, the apex bank said “The attention of the Central Bank of Nigeria (CBN) has been drawn once again to the activities of individuals and groups falsely claiming to represent or act on behalf of the CBN.
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‎”These actors continue to circulate fictitious offers of contracts, loans, grants, intervention funds, and other financial benefits allegedly issued or endorsed by the CBN.
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‎It added that “despite the public advisory issued on November 18, 2024, through the Bank’s official channels and news outlets, these misleading schemes have persisted, targeting unsuspecting members of the public with false and deceptive narratives.
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‎”The CBN wishes to reiterate that it has not authorised, licensed, or appointed any individual, group, or organisation to act as an agent or intermediary in offering contracts, financial grants, or intervention funds to the public. The CBN also does not endorse or support such claims in any form.
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‎”The apex bank however warned the general public that it does not award contracts or disburse funds through unsolicited communications such as emails, phone calls, SMS, WhatsApp, or any social media platform.
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‎While also noting that  it does not request payment of fees in exchange for contracts, grants, or financial interventions, nor does it engage intermediaries or third parties to offer financial services or opportunities to the public.
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‎”If you are approached by individuals or entities making such claims, we strongly advise that you do not engage with them. Instead, such incidents should be reported immediately to the relevant law enforcement agencies or the nearest CBN Branch.”
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