The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has warned Nigerian banks against issuing loans without credible collateral, stressing that such practices fuel insider abuse and rising non-performing loans.
Speaking through the Acting Zonal Director, Lagos Zonal Directorate 2, Ikoyi, ACE I Bawa Usman Kaltungo, during a courtesy visit by First Bank Plc’s Chief Audit Executive, Mufutau Olawale Abiola, Olukoyede expressed concern over lending practices. He stated: “We have issues with banks’ mode of giving loans. The process often shows insider abuse.”
He emphasized that loans based solely on personal guarantees, even from top executives, are unsafe: “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.”
He warned that granting such loans “amounts to tampering with depositors’ funds” and urged banks to ensure verifiable collateral and rigorous due diligence, adding that outsourced checks must include “a clause of liability.”
Olukoyede also called for stronger cooperation, urging banks to release staff promptly during investigations involving suspected insider abuse: “We must work together to stay ahead of criminals… where money is, that is where people’s hearts are.” He noted that cases may be escalated to foreign agencies when necessary.
Abiola, in response, appreciated the engagement, describing it as a step toward strengthening collaboration, while urging the EFCC to expedite investigations. He added that the bank has a dedicated team to handle EFCC requests.
