The purpose of this study is to identify and the impact and solution of Bank fraud and other sharp practice on the Banking Industry in Nigeria. The research is a primary research in the sense that it is established to investigate the causes and other sharp practices in Banking Industry in Nigeria. The research covers the staff of Nigeria United Bank for Africa Plc. In this research, the work of many expends in the field of the study were reviewed. This enables the researcher to know more about the various ideals of many theorists about the topic. Data gathered were analyzed in different tables using percentage where necessary an the data were interpreted as well. The research reveals that the number of Banks involved in friends and forgeries cases has been on decline over the past few years. Other findings were there is decrease in amount involved have been on the increase over the time and this across all the cadre of staff Conclusion was drawn on the data collected and the recommends were therefore provided as well.



1.1 Background of the Study

This project works examines the impact of fraud and other sharp practices on the performance of banking industry in Nigeria. Therefore, the world fraud and other sharp practices will be emphasize on the course of this unite up.

According to Babatunde (2006) fraud is define as an intentional misrepresentation, of financial information by one or more individuals among management, employees, or third parties fraud usually involves elements of dishonest deceit, non-disclosure of information concealment and other practices ingenuously perpetrated, in order to obtain unjust or illegal financial advantages

Going by this definition fraud in Nigeria economy cannot be restricted to the bank alone fraud in bank is not a new phenomenon as old as industry itself. However, like in the greater society they have become one of the most serious problems of modern day banking.

other sharp pra

ctices that is being perpetrated, in the banking industry includes, embezzlement and theft, misuse of the asset of the bank, manipulation of figures, forgeries but all this can be compressed into fraud, that is, the word “fraud” can be used capture all this act.

Fraud can be committed by the employers, customer and management of the bank concerned or others operating independently or in conspiracy, with other inside or outside the financial institution.

Fraud had its origin from the day the banking industry started in the country and in as much as the federal government through central bank attempt to solve this problem among other by promulgating different banking legislation, little or no success was achieved in this regard.

1.2 Statement of The Problem

This write up is expected provide answer to the following.

  1. To find out the cause of fraud in banking industry.
  2. To identify the impact of fraud in banking industry.
  3. To make recommendation and suggest solution to solve the problem of fraud in Nigeria banking industry

1.3 Research Hypothesis

The hypothesis to be tested in this research work is;

Ho:    There is no significance relationship between the fraud and performance of banking industry

H1: There is a significance relationship between fraud and performance of banking industry.

1.4 Purpose of the Study

The main objective of carrying out this research is to examined the impact of fraud and other sharp practice on the performance of Nigeria banking industries that is,

  1. To find out the causes of the fraud in banking industry
  2. To identify the impact of fraud in banking industry.
  3. To make recommendation and suggest solution as well to solve the problem of fraud in Nigeria banking industry.

1.5 Scope of the Study

          the study intend to examined in a broader view bank fraud and other sharp practices like forgeries, theft in banking industry, which is the pilot of Nigeria financial a

as a result of the inability of the researchers to cover the entire bank in the country the researchers has reduced the scope of study to data collected from U.B.A it will however be supplemented with a review of contribution in the daily newspaper, magazine and various professional journals in respect of the subject provided it is on banking.

1.6 Limitation of the study

In carrying at research project expenditure information to be the subject matter, there were a number of constraints encountered which among other are as follows

  1. Financial problem
  2. Time factor

1.7 Significant ofthe study

          The study will promise on those bank executives individual and other cooperate who perpetrate fraud taking into consideration the impact on the customer shareholder and Nigeria economy at large. it will help the future researchers and the public most especially the bank fraud and know how to get it curved.

Also, it will put conscious and prudent executives on the alert as to identify and tract of fraud whenever they occurred, these would be made know from the result of this project work.

1.8 Definition of term

          It becomes necessary for the researcher to define some of the terms used in research work.

  1. Bank – This is define as financial institution where money, securities and other valuable are kept and paid, used borrowed, lentor exchange.
  2. Dividends – This is the money that is been paid to the shareholder by the company for making use of their fund
  3. Fraud – Is the use of deception for unlawful gain on unjust merit. fraud can be define as an intentional misrepresentation, of financial information by one or more individuals among management, employees, or third parties
  4. Profitability – Is the yielding of a financial merit or other benefits
  5. Fraudster: A person that commit fraud
  6. Perpetrate: This is to commit a crime or something bad.
  7. Scrutinize: This means to examined with care and in detain

1.9 Historical background of the study ( U.B.A Plc )

The united bank for Africa plc has its antecedents rooted in that of its precursor.

The British and French bank limited, the British and French bank limited itself. Metamorphosed from BNCL pair, Banque national pourle commerce industries (established 1931).

In may 1949, the British and French bank began operate in Nigeria at 117 broad street Lagos, which today houses a part of the king way stores complex, the bank occupied a Flour of the Building at junction of Davies and broad street facing the Bread fruit church. The bank officially opened to business in 1949 with a staff strength of 12 and its first general manger was a French man my J. Pipar dies in 1950 while sums at the barb each Victoria land Lagos. The bank want public in 1960 in accordance with this policy and intention of the some of the share to Nigeria.

On February 23th 1960, the united bank of African limited was incorporated to take over the asset and liabilities of the bank for business under the new name was on October 3rd 1961, its registered office is at 127-129 broad street Lagos, Mr. F. Delogugie a French man was its first general manager the bank operating in Nigeria law. Paid capital was over N 4 million by 1961. the bank has grow from its one office structure to 10 branches located in Lagos, Kano, and port Harcourt.

M. Laurie was succeeded by Mr. G. Schneter whom the bank made remarkable progress and consolidated is policy of “exploition” a gilding philosophy with encourage aggressive selling of the bank service by manager going out to seek out for potential customer. In 1978, Mr. Michael took over and was succeeded by M. L. Joanme a Nigeria then Mr. Alhaji Umania Mutallab C.N.O.F.I.B, F.C.A was also appointed as the executive vice-chairman and adored Head of the bank, 1980, he was appointed as the management director and the chief executive and was succeeded in February, 1988 by Alhaji Suleiman S.Baffa. Thereafter, Mr. Joseph Sanusi succeeded in July, 1990, since incorporated in 1961, the bank has eight chairman at the head of its board of directors. on march 22 1961, Sir john Belfour, a Britain was appointed as chairman and also succeeded by another Britain, Sir partic on april 1, 1976 and was succeeded by sir Mr., Michael Audu, O.F.R, on april 8, 1980 with the appointment of november 1984 of chief Mrs. D.B.A Akuforiji Olubi M.O.N, F.C.A as board chairman U.B.A made history as the first bank to have a woman a chairman in Nigeria banking industry. she was succeeded by Alhaji, Adama Fika in july 3, 1990 and in 1993, Alhaji Bello Osagie succeeded him up till date.