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Tag: Banks

  • Cybercriminals will continue to target banks, says Wigwe

    Cybercriminals will continue to target banks, says Wigwe

    The Group Managing Director/CEO Access Bank Plc, Herbert Wigwe, yesterday said cybercriminals will continue to target banks, but advised lenders to ensure the fraudsters fail every time they try.

    Speaking at the 2017 Anti-Fraud Week hosted by Access Bank in Lagos, Wigwe said banks were expected to educate customers on the need to protect their data from fraudsters.

    “We can’t fight today’s crime with yesterday’s technology,”he said.

    Wigwe, who was represented by the bank’s Executive Director, Personal Banking, Victor Etuokwu, said  financial fraud was as old as mankind.

    “As some people tend to do good, others are motivated to do evil. In the world of today, there are people that fight financial crimes and others that commit financial crimes,” he said.

    Wigwe called on banks to fight fraud through active collaboration. He said the improved usage of digital banking exposes lenders to cybercriminals.

    The Access Bank boss said the advancement in technology helps lenders into new markets and understanding of their business better.

    Hesaid digital banking is also creating new opportunities for fraudsters.

    “In Access Bank, our sales mantra is Speed, Service and Security. There is need for stakeholders to inaugurate appropriate laws to secure online transactions. Fraudsters dedicate their time and resources to discover imperfection in the banking system,” he said.

    Head, Information System Security & Fraud Management at Nigeria Inter-Bank Settlement Systems Plc (NIBSS), Olufemi Fadero, defined digital banking as the moving online of all the traditional banking activities and programs that historically were only available to customers when physically inside of a bank branch.

    He said that digital banking has changed everyday life for consumers – dramatically altering the way they transact businesses.

    According to him, while digital banking has forever transformed the way people bank, it is also increasingly creating new opportunities for fraudsters. “Due to the speed and ease of digital banking ,more frauds are perpetrated effortlessly. Ongoing migration of the banks to faster payment mechanisms is a definite magnet for fraud. Online channels help criminals remain hidden and anonymous,” he said.

    Fadero said that financial losses affect customers’ trust. “Joint efforts are most effective in curbing fraud not just in digital banking but fraud in  general. Collaborations fosters proactive measures which are instrumental in tackling fraud. Information shared will aid in the reduction of payment transactions fraud,” he said.

    Continuing, he said: “Cooperation between relevant stakeholders is a key element necessary to effectively identify and counter cybercrime”.

    He said that fraud trend shows drop despite increase in transactions amount and count at the point financial institutions began to join efforts to tackle fraud. It is highly anticipated that heightened collaborations would mean further reductions in fraud.

    Central Bank of Nigeria (CBN) Director, Payment Systems Department, ‘Dipo Fatokun, said apex bank  recognises the need to harness expertise and consult broadly across the banking industry, payments services organisations, ICT sector, law enforcement to effectively combat electronic frauds.

  • Court modifies orders freezing accounts without BVN

    Court modifies orders freezing accounts without BVN

    A Federal High Court in Abuja Wednesday modified the order it made on October 17 this year for interim freezing of bank accounts who owners have not registered for the Bank Verification Number (BVN)

    The court, which had stayed further operation of such accounts pending the determination of a case pending before it, has now said the accounts could be operated once the owner registers for BVN.

    Justice Nnamdi Dimgba announced the modification Wednesday after parties in the case agreed that as presently couched, the order creates an awkward and unfortunate result such that even when account owners have got their BVN, they still will not be able to operate the accounts because doing so will be in violation of the order of court.

    Parties in the case also agreed that the said Relief No 4 should be revised to eliminate this problem, in the interim.

    In a ruling, Justice Dimgba said: “Having listened to all counsel on record, and with the consent of all parties represented, I hereby revise Relief No 4 of the court’s order of 17/10/17 such that the new Relief No 4 shall be:

    “AN INTERIM ORDER of the Honourable Court stopping all outward payments, operations or outward transactions (including any bill of exchange) in respect of the accounts pending the linking of the accounts to a Bank Verification Number”.

    In view of the above agreed compromise revision of Relief No 4, I also hereby revoke and set aside Relief No 5 of the Court’s Order of 17/10/17, which provides for:

    “AN INTERIM ORDER of forfeiture of the monies in the said accounts without BVN to the Claimants/Applicants being accounts with insufficient Know Your Customer (KYC) guidelines contrary to Section 3 of the Money Laundering Act, 2011 and CBN guidelines the determination of the Originating Motion on Notice,” the judge said.

    As as yesterday, none of the 19 commercial banks listed as defendants in the suit complied with the court’s order that they provide information about accounts without BVN in their custody.

    They only filed a motion challenging the court’s jurisdiction.

    Earlier in the proceedings, lawyer to 18 of the 20 banks listed as defendants in the suit, A. A. Adegbonmire (SAN) said his clients have filed an application, challenging the court’s jurisdiction to have made the order of October 17.

    He said the plaintiffs served him with their response yesterday, which he needed time to react to.

    Adegbonmire urged the court for an adjournment, which was not objected to by Joseph Tobi (for the plaintiffs).

    The judge consequently adjourned further proceedings to December 11.

    The Federal Government and the Attorney General of the Federation had filed the suit, querying among others, the continuous retention of accounts without BVN by banks.

  • Banks dump start-up businesses for private investors

    •Stanbic IBTC restates commitment to SMEs

    Commercial banks are avoiding funding start-up businesses because of high risk associated with such transactions, Head Trade Finance and Enterprise Banking at Stanbic IBTC Bank, Babatunde Akindele has said.

    Speaking during Stanbic IBTC Bank 2017 SME Capacity Building Series held in Lagos, he explained that private or angel investors should fund such enterprises and grow them to full capacity instead of relying on commercial banks.

    He said: “The Angel Investors are designed to fund start-ups. Banks were not designed to fund start-ups. The best we can do is impart business skills on them to enable them grow and add value to the economy. ‘’Stanbic IBTC wants to create employment, stimulate the economy and increase the impact of SMEs on the economy” he said.

    Akindele said the essence of the capacity building is to impact skills on SMEs and enhance  their capabilities. “SMEs remain the lifeblood of any economy. The better our SMEs, the more growth we will see. The idea is to impart skills on owners of SMEs businesses. We are training SMEs operators that are both new, or have been in the business for long,” he said.

    On why it is still difficult for many SMEs to access credit, he said the operators must comply with set lending criteria.

    “All lending come with criteria. We are here to let them understand the principles of business and letting them to meet those principles. We are happy that Nigeria’s Ease of Doing Business Report released by the World Bank showed an improvement. That alone will help boost foreign direct investment to the economy, which the SMEs will benefit from,” he said.

    “SMEs are the livewire of any economy. So the idea is that the better our SMEs become, the better their impact on the economy and the more growth we will experience.

    “It is a priority and that is why we are training people who are new in the business and those who have been in the business for a while. We have different roles in the economy but impacting business skills on small and medium businesses is something we can do and it’s something we are doing right here today,” he said.

    Akindele added that the Central Bank of Nigeria (CBN) recognises that there was the need to find ways to work on interest rates for SMEs, which have given rise to a number of intervention funds like the SMEs Fund.

    “The Federal Government has provided funding to banks to lend to SMEs at much lower interest rates and a lot of SMEs are already accessing the funds. All lending comes with criteria and that is part of why we are here to better understand the principles of business to better meeting those criteria,” he added.

    The workshop, which attracted several SME operators, had facilitators drawn from the China Europe International Business School.

    Topics on book keeping, financial management, operations management, digital marketing, customer experience management, local business landscape, among others, were covered.

  • CBN sets clearing rules for banks

    CBN sets clearing rules for banks

    The Central Bank of Nigeria (CBN) has reviewed the settlement banking arrangements for banks and merchant banks.

    The CBN’s Monetary, Credit, Foreign Trade and Exchange Guideline says it can only maintain a Settlement Account for a commercial bank that provides clearing collateral of not less than N15 billion worth of treasury bills.

    The apex bank said achieving the benchmark gives a bank the right to engage in clearing and settlements operations in the country.

    In a circular to all banks and the Nigeria Interbank Settlement System (NIBSS), CBN Director, Banking and Payments System Department, ‘Dipo Fatoku, said it had become imperative for the banks to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018.

    Specifically, he said the settlement of net clearing obligations from Central Securities Clearing System (CSCS), cheques, cards Automated Clearing House (ACH), NIBSS Instant Payment (NIP), National Electronic Funds Transfer (NEFT) and other clearing instruments shall be through the account of settlement banks only.

    Besides, such a Settlement Bank will have the ability to offer agency facilities to other banks and settle on their behalf, nationwide. It will equally have a branch network in all the CBN locations.

    The guidelines will be reviewed from time to time.

    It said that banks that meet the specified criteria will continue to be designated as “Settlement Banks”. This implies that non-settlement banks, called “Clearing Banks” will continue to carry out clearing operations through the settlement banks under agency arrangement.

    In the circular titled: Extension of Settlement Banking Arrangement to all Clearing Sessions’, Fatokun recalled that the CBN introduced settlement banking framework on April 1, 2014.

    “The framework categorised deposit money banks into settlement and non-settlement banks. The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during sessions 1 and 2.”

    He said non-settlement banks should going forward, enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly. “The aforementioned framework has been working well and contributed to the relative stability in the net settlement operations for settlement of clearing sessions 1 and 2 on the Real-time Gross Settlement System (RTGS),” he said.

    “In view of this, it has become imperative for the bank to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018. Specifically, the settlement of net clearing obligations from CSCS, cheques, cards ACH, NIP, NEFT and other clearing instruments shall be through the account of settlement banks only”.

    The CBN advised settlement banks to update the agency agreements with their non-settlement banks. “Merchant banks that do not have settlement banks should appoint a settlement bank and inform the CBN on or before December 15,” it said.

  • Banks may recall loans over BVN

    Banks may recall loans over BVN

    Banks are bracing for the effects of a likely  forfeiture of funds in accounts without the Bank Verification Number ( BVN ).

    Should the government enforce the court order on such accounts, the banks will

    • recall loans from customers; and
    • lay-off staff.

    Speaking yesterday on the development, former Registrar/Chief Executive, Chartered Institute of Bankers of Nigeria (CIBN), Uju Ogubunka, said a massive loan recall would help the lenders keep their liquidity ratio within regulatory threshold.

    Liquidity ratios are based on various portions of a bank’s current assets and liabilities taken from its balance sheet. A bank with a low coverage rate should raise a red flag for investors and customers as it may be a sign that it will have difficulty meeting its short-term financial obligations, and consequently in running its day-to-day operations.

    The Central Bank of Nigeria’s (CBN’s) Economic Report obtained by The Nation showed that aggregate credit (net) to the economy stood at  N27.47 trillion in the first quarter of 2017. The report also indicated that banks loaned N22.27 trillion to the private sector within same period. However, it is not yet established the percentage of the loans that may be recalled by the lenders.

    Justice Dimgba Igwe of the Federal High Court, ruling on an ex parte application filed by the Federal Government through the Office of the Attorney-General of the Federation on October 21, granted the temporary forfeiture of funds in accounts not linked to BVN within two weeks unless the owners justify their ownership of such accounts. The deadline for compliance ended last Friday.

    Ogubunka, who is now the President, Bank Customers Association of Nigeria (BCAN) said many banks have ‘core deposits or savings’ which are usually kept with them for long time and used for long-term financing because the owners of the funds might have abandoned them. He said the new policy will likely affect such funds and shake liquidity positions of banks that rely on such funds to finance long-term projects.

    He disclosed that one of the risks banks suffer is regulatory, but the current challenge facing the lenders is legal risks and there are likelihood that some banks may recall credits given out to customers to boost liquidity position.

    He added that such remains an option because of the shortness of time, which makes it difficult for the affected lenders to go for fresh capital immediately.

    When asked if such practice will not be breach of the loan contract, Ogubunka said: “It will not be breach of contract. There is always a caveat in every loan offer which stipulates that the bank may recall the credit or change conditions of the loan. So, any bank that recalls loans under this circumstance is covered by law because such lender needs to stay in business”.

    He also said that job losses remain imminent because the level of deposit to be lost by the affected banks seems huge, and lenders may want to minimize their cost of operation by laying off some of their staff.

    “There will so many implications but we pray no bank goes under. We may see some banks with porous liquidity as the Federal Government begins to implement the court order. But government has to be cautious in implementing this policy because it has huge implications for the banks, customers and economy,” he said.

    He said enough time was not given to bank customer to comply with the directive given that the BVN was not originally meant to be used to confiscate customers’ money but to protect their accounts. “Some people may have taken the BVN policy for granted, but the reality now is that if you don’t have BVN, you may lose the money in your account to the Federal Government,” he said.

    Findings showed that  it would be very difficult to put a figure to the 46 million accounts not linked to BVN but the first generation banks are believed to have the largest number of dormant accounts, although that has not been established. These banks have the largest number of dormant accounts because of how long they have been in the business.

    The CBN through the Banker’ Committee and in collaboration with all banks in Nigeria on February 14, 2014, launched a $50 million centralised biometric identification system for the banking industry tagged Bank Verification Number (BVN). The BVN gives a unique identity that can be verified across the Nigerian Banking Industry (not peculiar to one bank) while bank customers are protected from unauthorised access.

    The Federal Government secured an interim forfeiture order from Federal High Court which would now allow it to freeze the accounts of bank customers in Nigeria who have no Bank Verification Number, BVN.

    The order obtained before Justice Dimgba gave the Federal Government the nod to instruct the banks to disclose any investments made with these funds and to freeze any outward movement from these accounts.

    The court order mandates the CBN to appoint an examiner to look into the books of any commercial bank that fails to comply. The banks are expected to provide the names of accounts without BVN, account numbers, outstanding balances, domiciliary accounts without BVN, branch/locations where these accounts are domiciled.

    Read Also: BVN: First generation banks to suffer biggest losses

  • IMF: banks must recapitalise

    IMF: banks must recapitalise

    Many commercial banks need to raise new capital and boost their capital adequacy ratios for them to drive the desired growth in the economy, the International Monetary Fund (IMF) said at the weekend.

    The IMF’s Mission Chief for Nigeria, African Department, Amine Mati, said the commercial lenders needed recapitalisation to secure fresh funds to boost the Federal Government’s chances of achieving the Economic Recovery and Growth Plan (ERGP) target. The ERGP, a Medium Term Plan for 2017 to 2020, is designed to help the Federal Government jumpstart the economy.

    Mati spoke at the 2017 Chartered Institute of Bankers of Nigeria (CIBN) Investiture with the theme: Coherent set of policies for greater exchange rate flexibility.

    He advised the Federal Government to embark on full Value Added Tax (VAT) reform and cancel tax holidays and exemptions that erode the Company Income Tax (CIT) base. He also urged the government to increase taxes on alcohol and tobacco and broaden VAT by revisiting exemptions.

    The last mass recapitalisation in banking occurred in 2005 when the minimum capital base was raised from N2 billion to N25 billion. That exercise reduced the number of banks from 89 to 25 after mergers and acquisitions. Now, there are 21 commercial banks, four merchant banks and one non-interest bank.

    The Central Bank of Nigeria (CBN) has continued to advise banks to double provisions on performing loans to two percent to build adequate buffers against unexpected losses, as liquidity ratios fall. Besides, lower revenues for government and oil companies due to plunging crude prices have led to unsecured exposures for banks that are likely to increase credit risk and loan losses. The level of non-performing loans has risen to nearly 15 per cent against five per cent regulatory threshold and lenders need new capital to maintain sound capital adequacy ratio.

    While the capital adequacy ratio of most banks is generally above the minimum regulatory threshold of 15 per cent, the adoption of Basel II implies additional capital as banks grow their risk assets.

    Besides, banks that are designated as systemically important banks (SIBs) are expected to provide for additional 100 basis points to increase their minimum capital adequacy ratio to 16 per cent as against the general requirement of 15 per cent. National and regional banks need only 10 per cent capital adequacy ratio.

    Many banks are already accessing the Eurobond market for tier-2 capital. Market sources said more lenders may return to the capital market for additional funds in the months ahead to create a headroom for loan growth.

    On exchange rate policy, Mati described the Investors’ & Exporter’s Forex Window as a good move to address market segmentation, adding that the CBN should unify/ simplify the forex market. He said the current exchange rate was in line with market expectations, but there are significant headwinds, amidst structural challenges and elevated risks.

    CBN Deputy Governor (Financial System Stability) Joseph Nnanna, who was elected Fellow of the CIBN, said the exchange rate was converging and moving southward.

    He said although the IMF wants the CBN to unify the rates, that can happen organically or inorganically. “For us at the CBN, we believe that organic convergence is the way to go. Inorganic convergence, which is forced, will always produce an arbitrage and that we don’t want,” he said.

    In Nnanna’s view,  the exchange rate has greatly stabilised. “Before, the naira exchange rate to a dollar was for almost N500/ dollar. Today, it has come down through a combination of policies. We didn’t force it down. It came down organically or naturally, and that’s the way it is supposed to be,” he said.

    He said the exchange rate will not rise as the end of year approaches.

    “No, the rate will not go up, take it from me. We have achieved stability and the stability is here to stay. The sustainability of the dollar interventions is already evident, the foreign reserve is growing. As I speak, it is $34 billion. When we had volatility, the reserve was as low as $20 billion. But let me say one thing: Nigeria can make do with a reserve level of $20 billion,” Nnanna said.

    “All we need to manage the economy and manage it properly is a reserve that can cover at least three months of import.”

    On the I & E Forex Window, the CBN Deputy Governor said it had remained a huge success as it performed beyond the CBN’s expectation. “Within four months, the I & E Forex window was introduced, we have seen volume of over $10 billion and above – it’s a huge success. I believe other countries can copy a page from us,” Nnanna said.

  • ATM charges: Report banks to us, CBN tells customers

    The Central Bank of Nigeria (CBN) has urged customers to promptly report unnecessary charges by any commercial bank especially on transactions carried out through the automated teller machine (ATM) to the apex bank.

    CBN’s Director Monetary Policy, Moses Tule, assured the apex bank has the means to sanction any bank found imposing unnecessary charges on innocent citizens.

    He however said such sanctions will follow if only the affected customers draw attention of the CBN to such frauds through formal report.

    Tule spoke in Jos while delivering a public lecture on “Monetary policy at uncertain time”.

    He said: “The CBN considered it fraud the act by commercial banks to exploit innocent customers through unnecessary charges.”

    A student of the University of Jos has asked during the question and answer session after the public lecture why the CBN is not doing anything to stop unnecessary charges by banks each time customers withdraw cash through ATM.

    The student complained he was aware charges on ATM transaction can only be done after the third withdrawals but had noticed N65 charge is often deducted from his account at first withdrawal.

  • BREAKING: Banks to keep database of fraudulent customers

    BREAKING: Banks to keep database of fraudulent customers

    The Central Bank of Nigeria (CBN) on Thursday directed banks to establish a database of their customers identified through their Bank Verification Numbers (BVNs) to be involved in a confirmed fraudulent activity in the banking industry.

    The directive was contained in the Regulatory Framework for Bank Verification Number (BVN) Operation and Watch-list for Nigerian Financial System released by the CBN. The implementation of the framework is with immediate effect.

    CBN Director, Banking & Payments System,’Dipo Fatokun, who signed the framework, said bank customers are to by this framework, abide by  the regulatory framework for BVN operations and the watch-list for the Nigerian Banking Industry and also report all suspicious or unauthorized activities on their accounts.

    Data from the CBN showed that Nigeria experienced a total of 3,500 cyber-attacks with 70 percent success rate and loss of $450 million within the last one year mainly through cross-channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

    Although e-fraud rate in terms of value dropped by 63 percent, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 percent.

    The new regulation is expected to assist the CBN to a great deal, in curbing the menace of fraudsters

    According to Fatokun, the new framework is in the exercise of the powers conferred on the CBN, by Sections 2 (d) and 47 (2), of the CBN Act, 2007, to promote the development of efficient and effective payments systems for the settlement of transactions.

    He said the framework provides standards for the BVN operations and watch-list for the Nigerian Banking Industry. The watch-list comprises a database of bank customers’ identified by their BVNs, who have been involved in a confirmed fraudulent activity in the banking industry in Nigeria.

    Fatokun said the regulatory framework shall guide activities of the participants in the provision of the BVN operations in Nigeria and that the CBN, Nigeria Inter-Bank Settlement System (NIBSS), Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Bank Customers are participants in its implementation.

    He said the CBN, in collaboration with the Bankers Committee, proactively embarked upon the deployment of a centralized BVN System and launched the BVN in February 2014. This, he said, was part of the overall strategy of ensuring the effectiveness of the Know Your Customer (KYC) principles, and the promotion of a safe, reliable and efficient payments system.

    The BVN gives a unique identity across the banking industry to each customer of Nigerian banks.

    “This framework also defines the establishment and operations of a Watch-list for the Nigerian Banking Industry, to address the increasing incidences, of frauds, with a view to engendering public confidence in the banking industry.

    “This framework, without prejudice to existing laws, is a guide for the operations of the watch-List in the Financial System.”

    The Watch-list is a database of bank customers identified by their BVNs, who have been involved in confirmed fraudulent activities.

    The framework is expected to clearly define the roles and responsibilities of stakeholders; clearly, define the operations of the BVN in Nigeria; define access, usage and management of the BVN information, requirements and conditions and provide a database of watch-listed individuals.

    It is also expected to outline the process and operations of the watch-List and deter fraud incidences in the Nigerian Banking Industry.

    In implementing this framework, the CBN is expected to approve the Regulatory Framework and Standard Operating Guidelines as well as approve eligible users for access to the BVN information.

    The Nigeria Interbank-Settlement System (NIBSS) is to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN while the banks are to ensure proper capturing of the BVN data and validate same before the linkage with customers’ accounts.

  • Oil contracts: Kachikwu urges banks to minimise risk

    Oil contracts: Kachikwu urges banks to minimise risk

    Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has warned banks and other financial institutions to thoroughly scrutinise every oil contracts before extending any line of credits to contractors in order to curtail the incidence of bad loans.

    He spoke in Lagos yesterday, where he delivered the keynote address at the Institute of Credit Administration (ICA)’s National Credit Managers Conference/Nigeria Credit Industry Awards 2017.

    While giving a ministerial review of credit management in the nation’s oil and gas sector, the minister observed that the credit management performance of the sector over the years has been noteworthy with numerous projects in the petroleum value chain attaining completion without incidents of liquidity issues.

    He was however quick to add that in order to improve the credit management performance in the sector, “The entire value chain from due diligence of the borrower to credit funding, credit utilisation, and repayment must be analysed in detail.”

    The minister who was represented by Dr. Adetunji Oyebanji, Chairman/Managing Director, Mobil Nigeria Plc, said financial institutions need to attain higher standards in terms of capacity and capital base.

    Specifically, he said: “For oil and gas projects, I advise that lenders interact with the Ministry of Petroleum Resources as part of their due diligence before funding credit requests from borrowers. We have ensured our regulating agencies, the Department of Petroleum Resources (DPR) and Petroleum Product Pricing Regulatory Agency (PPPRA) implement due diligence measures on new investors desiring to invest in oil and gas projects such as the building of new refineries, etc.”

    He further advised that “There should also exist effective monitoring of the borrower’s activities. This allows for credit defaulting to be anticipated earlier. In such a situation where credit defaulting is anticipated, mitigating measures could then be deployed to prevent credit mismanagement.”

    The minister, who also received the prestigious Oil and Gas Industry Growth Driver of the Year award from ICA, also emphasised the role of insurance companies in recovery in a situation where there is absolute mismanagement of credit.

    Speaking earlier, Registrar/CEO, ICA, Prof. Chris Onalo in his remarks impressed on credit professionals the need to raise the bar in terms of competence and performance, stressing that they remain major drivers of a successful credit economy, which is the hall mark of a virile society.

  • Banks unwilling to disclose frauds, says NCC

    Banks unwilling to disclose frauds, says NCC

    There is an increase in banking frauds than banks are willing to disclose, Executive Vice Chairman of the Nigeria Communication Commission (NCC), Professor Umaru Danbatta, has alleged.

    He spoke in Minna while presenting a paper titled ’promoting regulatory framework for safety and security on the internet’ at the North Central Zonal Internet Governance Forum.

    According to him, banks are unwilling to discuss frauds among them due to fear of liquidation and loss of customer.

    “The banks do not report many frauds because of liquidation problems. They are scared that their customers will leave if they report such incidences.

    “These banks feel that the customers will not have confidence in them anymore,” he stressed.

    Danbatta, however, said non-disclosure by the banks is militating against the statistics towards ensuring cyber security.

    He pointed out only collaboration and cooperation between private and public organisations will build the capacity of cyber security policies across the nation.

    Chairperson of the Nigeria Internet Governance Forum, Mrs. Mary Uduma, called for adequate sensitisation on cyber security and hate speeches.

    She added hate speeches can destroy a community, stating laws against hate speech need to be strengthened for effective coordination.

    Coordinator of the Hate Speech Project, Isah Garba, said that its monitoring project revealed the nation recorded 6,258 hate speeches in 2016.

    Of the hate speeches, he said 2,603 were of religious contents, 421 were political, 2, 449 ethnic-based, 283 Biafra, 134 on farmer herders and 118 on bye elections.