Nigeria: Bank Fraud
In recent years, the volume and frequency of fraudulent practices in Nigerian banks have been on the increase. According to the Nigeria Deposit Insurance Corporation (NDIC), the level of reported fraud in Nigerian banks rose from N804m in 1990 to N3,199m in 1998. Furthermore, the proportion of actual/expected loss to the amount involved in fraud rose from 3 per cent in 1990 to 22 per cent in 1998. Perhaps the highest fraud ever reported in any particular year by a Nigerian bank occurred in 1998 when United Bank for Africa plc wrote off N786m on account of fraud. The growing scope and scale of fraud in the Nigerian banking industry is not surprising, given the rising profile of the country as a corrupt and fraudulent nation. For instance, a recent survey by Transparency International, a German‐based international organisation that interviewed business people worldwide, listed Nigeria as the second most corrupt country in the world. The country also has a poor reputation concerning drug trafficking. It has, for instance, been asserted that:
Credit Risk Models: Lessons for Nigerian Banks
Credit risk arises because of the possibility that promised cash flows on financial claims held by banks and other financial institutions (BOFIs) will not be paid in full. Virtually all BOFIs face this risk. BOFIs are operating in markets with asymmetric information wherein prospective borrowers have more information about their repayment ability than the lenders. A key role of BOFIs involves gathering information which acts as reliable signal and to provide incentives for screening and monitoring loan applicants to ensure funding of the most credit worthy loans. This paper delves into these issues. It begins by explaining the various types of loans advanced by BOFIs, determinants of return on a loan and evaluation of issues in measurement of credit risk. The key idea here is that a top-down risk analysis facilitates the design of targeted controls or safeguards against credit risk losses. Various default risk models were also reviewed and the article concludes that credit control should emphasize appropriate chains of approval, collateral requirements, accurate pricing, the optimal loan size for specific borrowers, credit monitoring and knowledge of market dynamics to determine loan performance sensitivity to changing market conditions.
The Agricultural System of the Manya-Krobo of the Gold Coast
Opening Paragraph The Manya-Krobo are one of the eight groups comprising the Adangme-speaking peoples who inhabit the Shai Plain between the River Volta and the Accra Plain. Until about 1890 the Krobo head-quarters were on the Krobo Hill, a rocky fastness which rises abruptly like a craggy island out of the perfectly flat plain. They have now abandoned this hill and made their head-quarters in the town of Odumase near the foot. Résumé LE SYSTÈME AGRICOLE DES MANYA-KROBO DE LA CÔTE DE L'OR La population de Manya-Krobo sur la Cote de l'Or, 100.000 âmes environ, se compose d'agriculteurs toujours en quête de nouvelles terres. Depuis un siècle ils ont acquis les terres de ceux de leurs voisins qui en avaient plus qu'ils ne voulaient. Le terrain s'achète en grands morceaux par groupes de souscripteurs, et se divise ensuite entre eux. Chaque groupe devient alors une unité sociale et gouvernementale. L'ensemble total de terres Krobo augmente en proportion de la population mâle du pays, car les pères achètent de nouvelles terres pour leur fils. Tous les us et coutumes sociaux (viz. le mariage) ont été modifiés afin de les assujettir à la passion dominante: l'agriculture et l'extension des terres. L'ambition politique corporative égale l'ambition individuelle, causant une cohésion absolue et vraiment impressionnante de la tribu. D'énormes marchés ravitaillent les centres urbains. Ils produisent à la fois les revenus de la tribu et le gain individuel, et sont nés du désir de l'individu de s'enrichir et d'acheter plus de terres. Le problemè de l'avenir pivote sur le fait que les nouveaux terrains à acheter sont presqu'épuisés. Un enseignement agricole faisant part de méthodes plus productives et moins prodigues des terres en cultivation, est une nécessité.