The Economic and Financial Crimes Commission (EFCC) has warned Nigerian banks against granting loans without credible collateral, citing rising cases of insider abuse and non-performing loans.
EFCC Chairman, Ola Olukoyede, gave the warning during a courtesy visit by a delegation from First Bank of Nigeria led by its Chief Audit Executive, Mufutau Olawale Abiola, to the Commission’s Lagos Zonal Directorate in Ikoyi.
Represented by Acting Zonal Director, Bawa Usman Kaltungo, Olukoyede criticised the practice of issuing loans based solely on personal guarantees, especially from top executives, describing it as unsafe and a threat to depositors’ funds.
He stressed the need for banks to prioritise verifiable collateral and thorough due diligence, warning that failure to do so amounts to mismanagement of customers’ deposits. The EFCC boss also urged financial institutions to cooperate with investigators by promptly releasing staff when required in cases involving suspected insider misconduct.
In response, Abiola said the visit was aimed at strengthening collaboration with the EFCC and called for faster investigation of cases involving bank personnel. He added that the bank has established a dedicated team to handle requests from the anti-graft agency.