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‘Banks lost N15billion to fraud, cyber-crime in 2018’

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Contract staffing in Nigeria Banks, Nigerian Banks, Number of contract staff across Nigerian banks drop by 3,083, biggest in 4 years  

The Nigerian banking industry lost N15.15 billion to cyber-crime and forgeries in 2018.

This amount was 539% higher than the N2.37 billion recorded in 2017.

This information was contained in the 2018 report of the Nigeria Deposit Insurance Commission (NDIC), posted on its website on Friday.

According to NDIC, the rising cases of fraud in the banking system could be attributed to the internet and technology-based channels and instruments.

The NDIC report reads: The increase in the sophistication of fraud-related techniques such as hacking, cyber-crime as well as I.T related products and usages, fraudulent withdrawals and unauthorized credit are the sources through which the perpetrators operate.”

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The fraud cases: According to the report, a total of 37,817 fraud cases which stood at N38.93 billion were reported in 2018, over 11,000 more than the 26,182 recorded fraud cases amounting to N12.01 billion in 2017.

[READ: six bank MDs in EFCC net over alleged N2 billion fraud]

  • The report showed that the number of Automated Teller Machines (ATM)/card-related fraud cases declined to 10,063 in 2018. This decline was attributed to the improved security features of the cards as well as security awareness on the part of the users.
  • Specifically,  NDIC stated that internet and technology-based channels accounted for 59.2% of fraud cases and 42.83% of actual total loss suffered during the year.
  • However, there was an increase in the number of web-based fraud cases to 12,343 in 2018 from 7,869 in 2017.

Further details: It was further revealed in the report that a total number of 899 staff were involved in fraud and forgery cases during the year This represented over 60% rise when compared to 120 recorded in the previous year.

  • 394 temporary staff were involved in fraud cases, accounting for 43.83% of the total number of staff involved in fraud.
  • Of the total number of staff, 206 or 22.91% was perpetrated by Officers and Executive Assistants’ Cadre
  • Fraud cases supervisors and managers accounted for 13.24% or 199 cases.

Curbing persisting fraud: The NDIC noted that with the consistent rise in the number of temporary staff involvement in fraud and forgery cases, the deposit money banks, as well as the regulators, need to address the problem of temporary or contract staff in terms of welfare and permanent employment in view of the risk their current position poses on the bank’s operations.

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What this means is that the banking sector becomes more vulnerable to risks as a result of the alarming rate of fraud and forgery cases within the sector as well as the advancement of technological tools in the financial sector. This, in turn, may lead to further increase in the liabilities of the deposit money banks or a possible bank failure.

[READ ALSO: DMBs meet SMEs’ financial needs with over N70 billion]

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Companies

Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.

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Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

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Appointments

Buhari appoints Abubakar Nuhu Fikpo as Acting DG of National Directorate of Employment

President Buhari has appointed Abubakar Nuhu Fikpo as the Acting DG of the National Directorate of Employment.

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Buhari sacks DG National Directorate of Employment, Nasiru Argungu

President Muhammadu Buhari has announced the appointment of Abubakar Nuhu Fikpo as the Acting Director-General of the National Directorate of Employment.

This was disclosed by media aide to the Presidency, Garba Shehu, in a social media statement on Monday.

He said:

  • President Muhammadu Buhari has formally conveyed to the Hon. Minister of State, Labour and Employment, Festus Keyamo, SAN, his approval of the nomination of Mallam Abubakar Nuhu Fikpo, as the Acting Director-General of the National Directorate of Employment, pending the appointment of a substantive Director-General for the Agency.
  • Last month, the President relieved the former DG of his appointment, and directed the Minister to nominate an Acting DG to superintend over the Agency, pending the appointment of a substantive DG.

What you should know 

  • The Federal Government through the National Directorate of Employment (NDE) formally kick-started the Special Public Works (SPW) programme, which was designed to create 774,000 jobs across the nation, with the inauguration of the State Selection Committees in 2020.
  • Nairametrics reported last month that President Muhammadu Buhari approved the sack of Dr Nasiru Mohammed Ladan Argungu as the Director-General of the National Directorate of Employment (NDE) with effect from December 7, 2020.
  • The Presidency did not give any specific reason for the sack.

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Coronavirus

Covid-19: WHO warns the world faces catastrophic moral failure due to vaccine nationalism

The WHO has said that the prospects of equitable distribution of COVID-19 vaccines were at serious risk.

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Dr Tedros Adhanom, Head of the World health organization (WHO), COVID-19

The World Health Organization (WHO) said the world is on the brink of a catastrophic moral failure due to the fear of Covid-19 vaccine nationalism by the wealthy countries, while the poor countries are left behind.

This is as the UN health agency revealed that the prospects of equitable distribution of the vaccines were at serious risk just as its COVAX vaccine-sharing scheme plans to start distributing inoculations in February.

According to a report from Reuters, this disclosure was made by the Director-General of the WHO, Tedros Adhanom Ghebreyrsus, at the opening of the body’s Annual Executive Board virtual meeting.

He pointed out that 44 bilateral deals were signed last year and at least 12 have already been signed this year.

What the WHO Director-General is saying

Tedros warned against vaccine nationalism to avoid making the same mistake during the HIN1 and HIV pandemic.

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The WHO boss in his statement said,

  • This could delay COVAX deliveries and create exactly the scenario COVAX was designed to avoid with hoarding, a chaotic market, an uncoordinated response and continued social and economic disruption. Such a ‘me-first approach’ left the world’s poorest and most vulnerable at risk.
  • “Ultimately, these actions will only prolong the pandemic, countries should avoid making the same mistakes made during the H1N1 and HIV pandemics.’

He expressed his reservations over the ‘me-first’ attitude of the rich countries and the vaccine manufacturers who prioritize going for regulatory approval in wealthy countries rather than submitting their data to WHO for approval of the vaccines for use globally.

The global scramble for shots has intensified, as more infectious virus variants circulate.

Tedros said more than 39 million vaccine doses had been administered in 49 higher-income countries, whereas just 25 doses had been given in one poor country.

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Observers say this board meeting, which lasts until next Tuesday, is one of the most important in the U.N. health agency’s more than 70-year history, and could shape its role in global health long after the pandemic ends.

What you should know

  • The WHO and health experts had severally warned against nationalism as a serious threat to the fight against the coronavirus pandemic.
  • They had called for an equitable distribution of the Covid-19 vaccine amongst all countries globally, as the wealthy nations will still be at risk of the pandemic if the poor countries are still battling with the disease.

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