Abstract
In recent years, the volume and frequency of fraudulent practices in Nigerian banks have been on the increase with obvious implications on bank performance. The performance of Nigerian banking industry is a product of its returns and services rendered to the public as a whole. However, the occurrence and frequency of fraud in the banking sector over the years has negatively affected the performance of these banks in Nigeria. It is on this note that this paper examines the problem of fraud and its implications for bank performance in Nigeria through empirical analysis. The sources of data used for the paper were extracted from the Nigerian Deposit Insurance Corporation (NDIC) Annual Report from 2004 to 2009. Statistical methods such as parametric table and Pearson correlation were employed in the evaluation of the data. The study revealed that Nigerian banks recorded the highest fraud cases in 2008. The result of the hypothesis shows that, there is a significant relationship between total amount involved in fraud cases and bank‟s profit. On this note, it was recommended that fraud can be reduced by complying effectively with the policy measures which the government, monetary and supervisory authorities designed to curb the menace of bank fraud in Nigeria.