Abstract:
The effect of fraud was examined on the stability of financial institution in Nigeria for the last ten (10) years. IFR, PBP, FRL & MOL was used as representation of fraud while bank stability(BSTA) was used to represent financial institution stability. Seven banks resident in Abraka Ethiope East was used as the sample of the study. Primary data was obtained through questionnaire why secondary data was obtain from financial statement of the banks from 2013 to 2022. The coded response coupled with the financial data of banks understudied was analysed with the aid of statistical package for social sciences (SPSS). The results showed that inappropriate financial reporting, poor book keeping practices, fraudulent loans & money laundering has a negative and statistical significant influence on stability of financial institution in Nigeria. Consequence to the findings, the study recommend that measures (internal &external) should be put in place in the institution to curb fraud from its conception in order to reduce if not eliminate fraud in the financial service sector. Likewise, penalty for fraudulent activities should be spelt out clearly and publicized as this would discourage fraudulent tendencies.
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