ECONOMIC AND FINANCIAL CRIMES COMMISSION (EFCC) AND PERFORMANCE OF BANKS IN NIGERIA: AN IMPACT ASSESSMENT
Amaefule, Leonard I.1*, Okoye, Emma. I.2 & Umeaka, Ernest C.3
1Department of Accountancy, Imo State University Owerri, Imo State, Nigeria
2Accountancy Department, Nnamdi Azikiwe University Awka, Anambra State, Nigeria
3Department of Accountancy, Imo State University Owerri, Imo State – Nigeria
Email: leo4christ2002@yahoo.com;
Abstract: This study evaluates the impact of EFCC on the performance of the Nigerian banks. Quantitative data were sourced from the publications of the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) for the period covering 1993-2014. Test of Equality of difference between Means was employed in the analysis. Findings show that there is a significant positive difference in the amount involved in bank frauds between the post and pre EFCC establishment eras; that is, that amount lost to fraudsters during the post-EFCC establishment period is greater than (>) amount of bank frauds before the establishment of EFCC. It also reveals that the establishment of EFCC has brought about a positive impact on banks’ credit performance in Nigeria and has warranted a positive effect on total banks deposit. The implication being that the prevalence of fraud and fraudulent practices in Nigerian banking sector has been more even after the establishment of the anti-graft agency (EFCC); however, the operations of the agency has improved banks performance in terms of credit to the economy, sequel to more money at the disposal of banks occasioned by improved confidence of depositors on Nigerian banks. The study concludes that the establishment of EFCC as an anti-graft agency of Nigerian government has not made significant impact in curbing financial crimes in Nigerian banks; thus, have not justified the core objective of its establishment. It suggested, inter alia, an urgent need to restructure the legal framework guiding the operations of EFCC in Nigeria.
Keywords: Fraud, Corruption, Financial Crimes, Banks, Performance