Economic and Financial Review


Central Bank of Nigeria


Banking, Banking Malpractices, Nigeria, Law


The place of banks in the economic life of any nation is so strategic that every effort is made by the appropriate national authorities to regulate and effectively supervise banking business. This objective is often achieved through the mechanism of laws designed to purge the banking system of diverse frauds, and malpractices. This paper presents a general compendium of the socio-economic, as well as the cultural background that foster and sustain banking frauds and diverse malpractices in Nigeria. This is followed by an analysis of the various types of malpractices prevalent in the banking system, among which are malpractices by bank employees, those by outsiders (non-bank employees), and those committed by banks themselves as corporate bodies. A deontic consideration of the legal and institutional framework for the prevention, and control of banking malpractices is undertaken. The current laws on banking embody reasonably adequate provisions for the regulation of banking business in Nigeria . . However, it is revealed that legislation alone cannot achieve a clean banking system for Nigeria. The larger interest of trade, commerce, and economic prosperity demand that a clean, stable, and viable banking industry be preserved through a combination of legislative and institutional methodologies, as well as social activism, and attitudinal change in the citizenry. This new order will ensure that economic criminals will no longer be glorified over their ill-gotten wealth. The paper concludes with an attempt at articulating a prescriptive stance promotive of certain policy ends in the realisation of the objective of a clean banking system.

Author Bio

The author is a lecturer in Banking Law in the Department of Commercial Law of the Law Faculty, Ahmadu Bello University, Zaria, Nigeria.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Goldface-Irokalibe, I. J. (1995). Eradication of Banking Malpractices in Nigeria: Will Law Alone Succeed?. CBN Economic and Financial Review. 33(1), 62-83.



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