THE FINANCIAL IMPACT OF BANKS FRAUD ON ECONOMIC GROWTH: AN EMPIRICAL EVIDENCE FROM NIGERIA

Abstract

The current study evaluated how bank fraud affected Nigeria's economy monetarily. Information was gathered from the Nigerian National Bank. The ordinary least square (OLS) was used in this study to accomplish its stated goal. Measures of variability like variance and standard deviation were employed along with measures of central tendency like mean, maximum, and minimum in the descriptive statistics. To ascertain the financial impact of banking fraud on the Nigerian economy, the number of fraud and forgery cases, the amount of fraud, the loss to banks, and the number of successful fraud cases were regressed on the main explanatory variables. The results of the study demonstrated the significance of the links and the applicability of the models for insightful analysis and judgment. Once more, it was determined that bank fraud and Nigeria's economic expansion are highly correlated. This study has made an effort to draw attention to the prevalence, scope, and effects of fraud on the Nigerian economy. Banks have serious financial difficulties as a result of fraud. The study concluded that to safeguard their assets and be able to identify and stop fraud and fraudulent actions, banks need to improve their internal control systems. Using every resource at their disposal, Nigerian banks must strengthen their oversight to effectively curb and prevent the prevalence of fraud and fraudulent practices inside the country's banking sector.