Home Business Fraudsters hit Nigeria banks stole N3bn in 2015—-NDIC report

Fraudsters hit Nigeria banks stole N3bn in 2015—-NDIC report

by Business News Report

Nigerian banks lost N3 billion to fraudsters in 2015 with temporary staff accounting for 67 percent of the money lost. Nigeria Deposit Insurance Corporation (NDIC) disclosed this in its 2015 annual report released yesterday. While the report indicated a sharp decline in actual money lost to fraudsters during the year, it however revealed that losses due to internet dominated to the total lose by 27 percent.

The report also reveal that  decline in banks profitability to N588.86 billion from N601.02 billion despite 5.56 percent increase in  loans and advances to the economy which rose to N13.33 trillion in 2015

The report stated, “A total of 12,279 fraud cases were reported, representing an increase of 15.71 percent over the 10,612 fraud cases reported in 2014. However, the amount involved decreased significantly by N7.59 billion or 29.63 percent from N25.608 billion in 2014 to N18.021 billion in 2015. Similarly, the actual loss suffered by the insured banks decreased by N3.02 billion or 48.79 percent from N6.19 billion in 2014 to N3.17 billion in 2015.

“The actual loss sustained in respect of internet banking fraud was N857 million, representing 27 percent of total actual loss of the industry. There was an increase in the frequency of ATM/Card-Related Fraud cases from 7,181 in 2014 to 8,039 in 2015, an increase of 11.95 percent.  “However, the loss suffered by the industry due to such frauds declined significantly by 59.4 percent from previous year figure of ₦1.242 billion to ₦0.504 billion, representing 15.9 percent of total industry loss to frauds and forgeries.

“Out of the 12,279 fraud cases reported by the DMBs, 425 cases were attributed to staff. The number of fraud cases perpetrated by staff had decreased from 465 in 2014 to 425 in 2015. Similarly, losses arising there from substantially decreased by 70 percent from N3.165 billion in 2014 to ₦0.979 billion in 2015. The highest percentage of frauds and forgeries cases of 38.59 percent was perpetrated by temporary staff.

“The NDIC reduced the premium paid by banks by ₦9.09 billion in 2015 following the reduction of the premium base rate from 40 basis point to 35 for each DMB/NIB under the Differential Premium Assessment System (DPAS).

“The banking industry total assets grew marginally by 1.36 percent, total loans and advances rose by 5.56 percent, shareholders’ funds unimpaired by losses increased by 14.02 percent while capital adequacy ratio stood at 17.66 percent. However, total deposit liabilities declined by 2.83 percent, unaudited profits decreased by 2.02 percent while non-performing loans increased by 82.87 percent in 2015.

“The banking industry capital base remained strong. The capital adequacy ratio (CAR) of the banking industry was 17.66 percent in 2015 compared with 15.92 percent in 2014, but exceeded the minimum threshold of 10 percent and 15 percent for national and international banks respectively. Two (2) DMBs had CAR below the prescribed threshold of 10 percent in 2015.

“Total loans and advances to the Nigerian economy stood at ₦13.33 trillion in 2015, showing an increase of 5.56 percent over the ₦12.63 trillion reported in 2014. The non-performing loans to total loans ratio for the industry increased from 2.81 percent in 2014 to 4.87 percent in 2015, but was within the regulatory threshold of 5 percent.

“The banking industry operated profitably, though earnings and profitability deteriorated. The unaudited profit-before-tax (PBT) of the banking industry stood at ₦588.86 billion as at 31st December, 2015 representing a decrease of 2.02 percent over ₦601.02 billion reported as at 31st December, 2014.

The banking industry’s liquidity position was strong as its average liquidity ratio rose slightly from 53.65 percent in 2014 to 58.18 percent in 2015. All the individual DMBs had liquidity ratios above the prudential minimum threshold of 30 percent as at 31st December, 2015.    Overall, the banking industry remained stable and sound during the period under review.”


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