Nigerian banking system rocked by corruption charges

by Gill Montia

Story link: Nigerian banking system rocked by corruption charges

Investigations by Nigeria’s Economic and Financial Crimes Commission (EFCC) have resulted in criminal charges being brought against executives from five banks.

The banks concerned have all been bailed out by the Nigerian government, as bad debt and low cash reserves threatened their capital positions.

Some of the loans have been granted without board approval, some unsecured, and some made to fictitious individuals or organisations, the EFCC has stated.

A former head of FinBank, Okey Nwosu, has pleaded not guilty to 11 charges in relation to the scandal.

Executives at Afribank, Intercontinental Bank, Oceanic Bank and Union Bank are also involved in the investigations.

Authorities have suspended trading in the banks’ shares as the scale of the alleged corruption, which is said to involve money laundering, threatens the entire Nigerian banking system.