Internal Control System as a Catalyst of Preventing Fraud in Nigerian Financial Institutions, Case Study of CBN (Central Bank of Nigeria)

Authors : Oyedele, K.S.; I.F Remi-Aworemi; Aworemi J.R.; Abiri O.N.

Volume/Issue : Volume 8 - 2023, Issue 9 - September

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Fraud in Nigerian financial institutions can cause substantial losses and erode public trust. An effective internal control system is widely considered critical for fraud prevention, but research debates whether controls alone are sufficient versus requiring a multifaceted approach. This quantitative correlational study analyzed survey data from 200 employees of the Central Bank of Nigeria regarding perceptions of internal control strength, fraud prevention success, organizational culture, training, oversight, monitoring, institution size, and regulatory policies. Results revealed mostly weak, statistically nonsignificant correlations between the variables. The lack of strong negative correlation between controls and fraud prevention aligns with findings that controls alone may not fully predict prevention. The positive correlation between prevention and culture indicates fostering an ethical culture may enhance control effectiveness. No single control subsystem showed a strong unique link with prevention, highlighting needs for holistic control system strengthening alongside broader organizational reforms. These findings underscore a multilayered, systemic approach to fraud prevention combining technical controls, cultural change, robust oversight, and employee participation.

Keywords : Internal Control, Fraud Prevention, Organizational Culture, Financial Institutions, Nigeria.


Paper Submission Last Date
31 - December - 2023

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