Administrative Framework for the Prevention and Punishment of Banking Malpractice in Nigeria

This Article examines the activities of the bodies established under the Chartered Institute of Bankers Act in Nigeria for the prevention of malpractice in the Nigerian banking sub-sector. This inquiry aligns with the broader research objective of assessing the adequacy of the institutional arrangements designed to prevent and punish banking malpractice. Specifically, the Article evaluates whether these bodies perform their functions in accordance with the statutes that created them. The institutions under review are: the Chartered Institute of Bankers of Nigeria (CIBN) Investigating Panel and the CIBN Disciplinary Tribunal. The Article also examines the Bankers’ Committee and its complementary role within the administrative framework for preventing and punishing banking malpractice. This article administrative framework for preventing banking malpractice is also anchored by the Central Bank of Nigeria (CBN) Chartered Institute of Baking in Nigeria (CIBN) and the Nigeria Deposit Insurance Corporation (NDIC) operating under the Banks and Other Financial Institutions Act (BOFIA). It combines strict regulatory oversight, digitized consumer protection, and internal compliance controls to safeguard the banking sector. Also, the administrative framework for preventing banking malpractice in Nigeria relies on a multi-layered structure enforced by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC). This framework mitigates fraud and unethical practices through risk-based supervision, strict consumer protection mandates, data tracking, and law enforcement collaboration.