Whistle-Blowing Mechanism and Fraud Incidences in Nigerian Banking Industry

ABSTRACT

The study investigates the relationship between whistle blowing mechanism and fraud incidences in Nigerian banking industry. It focuses on the whistle-blowing guideline issued by CBN in 2014 to banks. It specifically examines the mechanism which is proxy as hotlines, web base portals and electronic device viz-a-viz video portals. The study adopts a cross sectional research design. Secondary data was used, as well as questionnaire that was administered to the staff of group internal audit department of the various deposit money banks at the head offices. The questionnaire was used to collect data on the independent variables. The study used descriptive and inferential statistics as methods of data analysis. The study finds that there exist a significant positive relationship between whistle blowing mechanism (hotlines, web-based portals and video portals) and fraud incidences in Nigerian banking industry. The study recommends that in the fight against fraud, other regulatory bodies should borrow a leaf from the CBN and NDIC in their supervisory role of entities activities. To ensure that the war against fraud is won, they should issue whistle blowing guidelines that must be adhered to and strictly monitor compliance at every short interval. Defaulters should be sanction to ensure compliance. It also adds that though good corporate governance was introduced as a means of minimising occurrence of fraud, it will be both efficient and effective with the inclusion of whistle-blowing mechanism.