Fraud examiners bemoan Nigeria’s yearly loss to financial hoax

Lagos State Chapter of the Association of Certified Fraud Examiner (ACFE), said unless taut effort is taken by government and private organisations against financial crimes, Nigeria’s economic growth may remain threatened.

In the face of current economic challenges in the country, the Association decried that the sustainability of businesses and national economy may not be guaranteed if fraudulent activities are not properly tackled.

Speaking at a Seminar, organised  by ACFE in Lagos, to discuss, “Anatomy of Fraud: Understanding and Preventing Bribery and Corruption,” the Associate Director, Forensic Nigeria, Beulah Adeoye, said at least five per cent of the losses incurred by organisations yearly result from fraudulent acts, adding that only 12 per cent of victim organisations are fortunate to recover their losses.

Adeoye, noting that deep knowledge of fraudulent activities is needed to effectively tackle the menace, stressed that fraud will continue to shorten the lifespan of businesses as well as the stability of the economy.

He added that bribery and corruption, which had become pervasive in the country, was ripping off massive investment in the private and public sectors, thus denying the nation of necessary development.

Adeoye said due diligence, risk assessment, proportionate procedure, and top level commitment were required to deal with financial crimes in Nigeria. President of ACFE, Lagos Chapter, Godwin Oyedokun, stressed the need to get experts, and involve fraud examiners in addressing the challenge of scaming in Nigeria.

He said the association would take its members through the nooks and cranny of business activities to reduce the incidence of fraud in private and public organisations across the country.

Oyedokun, who is also an advocate of audit forensic services, said Nigeria’s current economic woes are man-made, adding, “It is not because we cannot produce or that we lack the capacity to produce, but it is because of mismanagement and lack of focus.”

The Vice President of ACFE Lagos Chapter, who doubles as Board Member of OGE Professional Services Ltd., Donatus Ogbonnaya, while quoting the World Bank, said: “About $1 trillion is paid each year in bribes around the world, and the total economic loss from corruption is estimated to be many times that number. This figure dwarfs the value of all development assistance. The harm that corruption causes to development is, in fact, a multiple of the estimated volume, given the negative impact of corruption on the poor and on economic growth.”