The Nigerian Special Fraud Unit of the Nigerian Police Force recently detained five employees of the Christ Embassy microfinance bank for defrauding the organization of NGN 60 million (USD 400,000) [1]. The five employees funneled the money into two false accounts beginning some time in 2008 and ending in February 2009 when an independent auditor noted that the funds were missing [2]. At the time, the organization’s microfinance operations had not been licensed by the Central Bank of Nigeria (CBN).
Christ Embassy, a Pentecostal church founded by Chris Oyakhilome, emphasizes quick financial gains by any means available according to a story published by The Sun Nigeria News [2]. Numerous parishioners of Christ Embassy have been arrested for stealing funds that are ultimately donated to Christ Embassy [3]. This appears to be the first occasion that Christ Embassy employees have defrauded their own organization. The five accused employees blame their actions on a culture of corruption within Christ Embassy and a lack of training [2].
Please refer to the MicroCapital story in the sources section for more information on the issue of fraud and regulation in Nigeria [4].
Central Bank of Nigeria (CBN):
Some of the regulatory objectives of CBN as follows: to issue legal tender, to maintain the external reserves of the country, to promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government.
Additional Resources:
[1] Guardian News Nigeria: “Police Arrests Microfinance Bank Workers Over N60M Fraud,” by Odita Sunday, April 21, 2010, http://microfinanceafrica.net/news/police-arrests-microfinance-bank-workers-over-n60m-fraud/
[2] The Sun Nigeria News: “Sinners in Chris Embassy Steal Millions of Naira in Church’s Bank,” by Chioma Igbokwe, April 11, 2010, http://www.modernghana.com/news/270937/1/sinners-in-christ-embassy-steal-millions-of-naira-.html
[3] Nigeriafilms.com: “Chris Oyakhilome, Pastor of Christ Embassy’s Business Empire,” March 22, 2010, http://www.nigeriafilms.com/news/6751/21/chris-oyakhilome-pastor-of-christ-embassys-busines.html
[4] MicroCapital: “MICROCAPITAL.ORG STORY: The Nigeria Deposit insurance Corporation (NDIC) ‘Overwhelmed’ by Microfinance Responsibilities,” by Radhika Chandrasekhar, November 3, 2010, https://www.microcapital.org/microcapitalorg-story-the-nigeria-deposit-insurance-corporation-ndic-overwhelmed-by-microfinance-responsibilities/
MicroCapital’s Microfinance Universe profile: Central Bank of Nigeria (CBN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Buying Maritime Microfinance, Fintech Lender Payhippo Gains Deposit License, Access to Nigeria Inter-Bank Settlement System
- MICROCAPITAL BRIEF: Investors Buy $173m in Equity in Fusion Microfinance of India; IPO Allows Exits by Early Shareholders, Promoters
- MICROCAPITAL BRIEF: Grab Adds MoMo as Mobile Payment Option for Ride-sharing, Deliveries, Digital Financial Services in Vietnam
- MICROCAPITAL BRIEF: Moniepoint Microfinance Bank Launches Mobile Banking App, Debit Card in Nigeria
- MICROCAPITAL BRIEF: DEG Loans Husk Power $750k for Solar Microgrids in Nigeria, India
