EFCC Warns Banks Against Unsecured Loans Endangering Funds

The Economic and Financial Crimes Commission (EFCC), under the leadership of Chairman Ola Olukoyede, has issued a warning to Nigerian banks regarding the issuance of unsecured loans. During a visit to First Bank PLC, Olukoyede expressed concerns that lending practices, particularly those based solely on personal guarantees, pose significant risks to depositors' funds and fuel the increase in non-performing loans.

He highlighted that loans granted without credible collateral are unsafe and urged banks to implement stringent verification processes, including due diligence and outsourcing checks. Olukoyede called for stronger cooperation among banks and the EFCC, advocating for the prompt release of staff involved in investigations of suspected insider abuse.

He noted that cases may escalate to foreign agencies if necessary. Mufutau Olawal, Chief Audit Executive at First Bank, acknowledged the engagement and described steps taken to strengthen collaboration with the EFCC, emphasizing the bank's commitment to addressing these issues.