EFCC Highlights N40 Billion Losses from Employment Fraud in Nigeria

The EFCC reports that Nigeria loses over N40 billion annually due to employment fraud. Chairman Ola Olukoyede emphasized the need for preventive measures against financial crimes during a meeting with NECA. The EFCC is committed to increasing transparency and working with private sector employers to combat fraud. Additionally, the NCS has commended the EFCC for its efforts in maintaining economic integrity.

Ola Olukoyede, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), has expressed deep concerns regarding the troubling issue of employment fraud in Nigeria. He reported that the nation incurs losses exceeding N40 billion annually due to such fraudulent practices. This statement was made during a visit to the EFCC’s headquarters in Abuja by the Nigerian Employers’ Consultative Association (NECA), headed by Adewale Oyerinde.

Olukoyede pointed out that corruption and financial crimes are among the most significant barriers to Nigeria’s economic progress. He emphasized employment fraud as a particular area of concern, as both employers and employees take advantage of systemic weaknesses for their personal gain. He reiterated findings from a 2007 study, indicating the persistence of this issue over the years.

Furthermore, he highlighted the EFCC’s success in uncovering instances of salary fraud within the Integrated Personnel and Payroll Information System (IPPIS), where individuals unlawfully received government salaries despite not being legitimate employees. Ongoing investigations have reportedly saved the government billions of naira, underscoring the EFCC’s focus on preventive action against corruption.

Olukoyede emphasized the importance of prevention over post-crime recovery efforts, noting that it is more economical to avert fraud than to investigate after the fact. As such, the EFCC established the Fraud Risk Assessment and Control Department to monitor financial transactions across Ministries, Departments, and Agencies (MDAs) and promote transparency in budget allocations.

He urged NECA, which represents private sector employers, to actively assist in curbing employment fraud, thus preventing situations in which either employers exploit employees or vice versa. In response, Oyerinde acknowledged the significant financial damage inflicted upon the private sector due to financial crimes and expressed NECA’s readiness to collaborate with the EFCC to combat these issues.

The partnership proposal included joint workshops to enhance compliance, fraud prevention efforts, and promote ethical governance practices. Olukoyede welcomed NECA’s initiative and reaffirmed the EFCC’s commitment to enhancing financial transparency and protecting employees’ rights in both public and private sectors.

Additionally, the Nigeria Customs Service (NCS) commended the EFCC for its unwavering commitment to fighting economic and financial crimes, which supports national economic development. J.O. Adelaja, the Customs Area Controller for Oyo and Osun Command, noted the need for both agencies to bolster their collaboration in identifying and prosecuting economic offenders, including smugglers exploiting Nigeria’s borders.

Adelaja called for better intelligence sharing, operational coordination, and enhanced training between the EFCC and NCS to strengthen their collective efforts against economic crime. Responding to these points, Ringim of the EFCC reiterated her agency’s willingness to collaborate closely with the NCS to tackle smuggling and illegal wildlife trafficking, which pose serious threats to Nigeria’s economy.

The Economic and Financial Crimes Commission (EFCC) under Ola Olukoyede is addressing the critical issue of employment fraud in Nigeria, which reportedly costs the nation N40 billion annually. The collaboration between the EFCC and NECA aims to foster preventive measures against corruption and financial crimes, ensuring better practices in the employment sector. Both agencies underscore the significance of cooperative efforts to combat economic offenses and enhance national economic integrity.

Original Source: businessday.ng