CHAPTER ONE
1.0 INTRODUCTION
The period between 1947 and 1952 witnessed a rapid growth of indigenous banks in Nigeria. The increase in the number of indigenous banks was correspondingly followed by a high rate of collages of such banks. By 1954 about 21 out of 25 indigenous bank operating then in Nigeria had folded. The experience of banks failures was a sad affair for both officials, depositors and regulator. However, since the establishment of CBN IN 1959 the government had ensured through direct support mechanism that the banking public was no longer exposed to the hazards of bank failures. The government active involvement in banking and other economic scenes, were both for socio-economic and political consideration. The issue of efficiency in both the allocation and utilization of resources in these sectors where government actively participate, was therefore, relegated behind other considerations that were mainly socio political.
However, charge in the country’s fortunes coupled with increased competitive demand for resources in these sectors called for a review of government participation in the economic scene, in particular the liability and eiciency of its investments hence the deregulation of the entire economy, as well as the banking industry. The deregulation of banking industry marked a turning point in the causes of bank failures. The proliferation of banks, relative growth of the industry, provision of improved services offered and higher wages to bank workers, among other fulled the issue of fraud in financial institutions. Fraud is arguably the fastest growing phenomenon in Nigeria, millions of Naira are undoubtedly lost each year to fraud in Nigeria and other countries of the world. This raging distress syndrome, which is not incurious now in finance houses and banks has its roots in several fraudulent practices. The international Auditing Guidelines (IAG) define fraud as a particular type of irregularity
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