Banking industry leaders, regulators and audit executives have sought strategies to strengthen Nigeria’s financial system against fraud and governance failures.

They made the call, on Friday, at the two-day Annual General Meeting and fraud conference of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) in Lagos.

Speaking on the theme, ‘Fraud and Governance: Strengthening Institutional Frameworks in Nigeria’, Lagos State Governor, Babajide Sanwo-Olu, emphasised the critical role of regulatory oversight, technology, and ethical leadership in securing Nigeria’s financial ecosystem.

Represented by his Special Adviser, Internal Audits, Dr. Oyeyemi Ayoola, the governor underscored the urgent need for proactive measures to curb financial crimes, reaffirming his administration’s commitment to strengthening institutional frameworks to combat financial fraud and enhance governance.

He stressed that financial fraud was evolving, with cybercrime, insider threats, digital payment vulnerabilities, and regulatory loopholes becoming more sophisticated.

“Financial fraud is not just a banking problem, it is an economic threat, a governance challenge, and a risk to national development. Every time fraud occurs, businesses suffer, investors lose confidence, and public trust in the financial system is weakened,” he stated.

The governor stressed the importance of a collective approach to financial integrity, urging audit executives to step up their role as gatekeepers of financial integrity to protect not just their institutions, but the entire financial system.

Speaking earlier, Chairperson of ACAEBIN, Mrs. Aina Amah, highlighted the urgency of tackling financial fraud, which has been fueled by rapid technological advancements and increasingly complex financial transactions.

Amah underscored the importance of collaboration between financial institutions and regulatory bodies in protecting Nigeria’s financial system.

She said as fraudsters adopt more sophisticated methods, financial institutions were under growing pressure to stay ahead through technology-driven solutions and proactive governance measures.

Amah also underlined the need for improved governance structures, enhanced risk management practices, and stronger fraud detection mechanisms amid evolving financial crimes.

The financial expert welcomed Sanwo-Olu, whose presence, she noted, reaffirmed the government’s commitment to financial integrity and institutional governance.

“This gathering is a hallmark of our collective commitment to integrity, transparency, and corporate governance,” she said.

Delivering the keynote address, the Chairman of the Body of Bank Chief Executive Officers (CEOs), Mr. Oliver Alawuba, urged regulators to impose stricter penalties on financial institutions that fail to enforce internal fraud controls.

He stated that fraudulent activities in Nigeria’s financial sector were on the rise due to weak corporate governance, inadequate internal controls, and absence of real-time fraud monitoring and enforcement mechanisms.

Alawuba noted that to combat fraud in the sector, banks’ boards and executive management must establish a culture of zero tolerance for fraudulent activities.

He also called on banks to invest in predictive fraud detection technologies, including Artificial Intelligence (AI), machine learning, and real-time transaction monitoring, to enhance their fraud prevention efforts.