Nigeria Loses Over N40 Billion Annually to Employment Fraud, Warns EFCC Boss

The EFCC, led by Ola Olukoyede, reported that Nigeria loses over N40 billion annually to employment fraud, stressing the need for preventative measures. Collaboration with NECA was encouraged to combat this issue. The EFCC’s proactive stance reflects its commitment to enhancing financial transparency and fighting corruption effectively. Additionally, partnerships with agencies like the Nigeria Customs Service are essential for the broader fight against economic crimes.

Ola Olukoyede, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), has voiced serious concerns regarding the rampant issue of employment fraud within Nigeria. He revealed that such fraudulent practices result in annual losses exceeding N40 billion, impacting both public and private sectors alike. Olukoyede’s statements came during a courtesy visit from the Nigerian Employers’ Consultative Association (NECA) to the EFCC headquarters in Abuja.

In his address, Olukoyede highlighted that systemic corruption and financial crimes pose significant challenges to Nigeria’s economic development. He elaborated on employment fraud as a critical area of concern, citing how both employers and employees exploit existing loopholes for illicit gains. His past research in 2007 identified these fraud practices as a persistent issue affecting national integrity.

One of the notable successes of the EFCC has been combating salary fraud, particularly related to the Integrated Personnel and Payroll Information System (IPPIS). Olukoyede reported that continued investigations have saved the government substantial funds. He reiterated a proactive approach towards preventing corruption, emphasizing that it is more efficient to prevent fraud than to pursue recovery after the fact.

To ensure financial prudence, the EFCC has established the Fraud Risk Assessment and Control Department, which monitors fiscal transactions across various Ministries, Departments, and Agencies (MDAs). This initiative aims to promote transparency and accountability in government budgeting processes. Olukoyede urged NECA to actively collaborate in combatting employment fraud, advocating for practices that protect both employees and employers.

In response, Adewale Oyerinde from NECA acknowledged the severe economic impact of financial crimes on the private sector. He expressed the association’s commitment to working with the EFCC to address issues such as money laundering and cybercrime through collaborative workshops that enhance compliance and governance ethics. Olukoyede welcomed this initiative and assured NECA of the EFCC’s ongoing dedication to financial transparency and the welfare of Nigerian workers.

In related news, the Nigeria Customs Service has commended the EFCC’s continuous efforts in combating economic and financial crimes. J.O. Adelaja, the Customs Area Controller for Oyo/Osun Command, praised the EFCC’s role in supporting national economic security and expressed the need for strengthened cooperation between the two agencies in tackling illegal activities. Adelaja emphasized the importance of intelligence sharing and operational collaboration to enhance the fight against economic offenders.

In summary, Nigeria faces significant challenges due to employment fraud, costing the economy over N40 billion annually. The EFCC, under the leadership of Ola Olukoyede, is committed to preventive measures aimed at curbing these malpractices. Collaborative efforts between the EFCC and NECA could significantly contribute to improving financial integrity and promoting ethical governance in Nigeria. Furthermore, partnerships with other agencies like the Nigeria Customs Service are vital for fostering a robust national framework against economic crimes.

Original Source: businessday.ng