BANK FRAUD AND ITS EFFECTS ON THE GROWTH OF NIGERIAN ECONOMY. (A STUDY OF UNION BANK OF NIGERIA)

This study examined Bank fraud and its effects on the growth of Nigerian economy. Specifically, the study determined the effect of fraud cases, Actual loss associated with fraud and ATM frauds on Real Gross Domestic Product of Nigerian Economy. An ex –post facto research design approach was adopted for the study. Using time series data or the period of five (5) years from 2017 – 2021, the Union Bank of Nigeria Plc was purposively chosen as the sample size. Secondary data were carefully obtained which includes the CBN Statistical Bulletin (2021), CBN and NDIC annual reports from 2017 – 2021 and from which the data were obtained. The data collected were presented and analyzed using tables, descriptive and inferential statistics. Three hypotheses were formulated and tested in the course of this study. Panel least square Regression analysis was used to test for statistical significance of the effect of bank fraud on the growth of Nigerian economy. The results showed that there is statistical significant effect of fraud cases on Real Gross Domestic Product of Nigerian Economy. The findings further revealed that there is no statistical significant effect of Actual loss associated with fraud on Real Gross Domestic Product of Nigerian Economy. Finally, the result established also that there is statistical significant effect of ATM frauds on Real Gross Domestic Product of Nigerian Economy. Consequent upon the findings, this study recommends among others; that organizations should endeavor to put in place strong internal control system in order to limit and reduce the amount usually involved in fraud cases. Again, strict disciplinary action should be taken against fraudulent staff to serve as a deterrent for others.