Fraud-Risk Factors and Operating Performance: Empirical Evidence from Nigerian Traded Deposit Money Banks

Author: Gabriel Owoicho, Tirimisiyu Kunle Lasisi, Adeadebayo Abdulkabir Shuaib, Chimenka Ezeribe, Murtadho M. Alao

Abstract

This research seeks to examine the influence of fraud-risk factors on the operational performance of publicly traded deposit money banks in Nigeria. An ex-post facto research approach was used for this investigation. The study population comprises thirteen (13) deposit money banks that are officially listed on the Nigeria Exchange Group (NGX) as of 31 December 2024. A judgmental sampling method was used to choose six (6) banks. Secondary data were obtained from the annual reports and financial statements of the selected deposit money institutions for the five-year period from 2020 to 2024. The gathered data were evaluated with multiple regression. The research concluded that external pressure and opportunity do not significantly affect the operational performance of publicly listed deposit money banks in Nigeria. The research revealed that operationalization positively influences the operating performance of traded deposit money institutions in Nigeria. The management of traded deposit banks in Nigeria is cautioned not to let external pressures to dictate the quality of their fundamental tasks, since this might adversely affect their financial success. Traded deposit money institutions in Nigeria should have rigorous oversight with independent audit committee members. This will reduce the potential for fraudulent activities.