EFCC Warns Banks Against Loans Without Collateral

The Economic and Financial Crimes Commission (EFCC), under the leadership of Chairman Ola Olukoyede, has issued a stern warning to Nigerian banks regarding the issuance of loans without verifiable collateral. Olukoyede emphasized that such practices often lead to insider abuse and an increase in non-performing loans.

This warning was articulated during a recent courtesy visit from Mufutau Abiola, the Chief Audit Executive of First Bank PLC, to the Lagos Zonal Director of the EFCC, Ikoyi. Olukoyede highlighted the risks posed to depositor funds when loans are granted based solely on personal guarantees, particularly from top executives.

He urged banks to strengthen their due diligence processes to prevent loan defaults and protect depositor funds. Furthermore, he called for financial institutions to promptly release staff for investigations involving allegations of financial misconduct to collaboratively combat economic and financial crime.