The Centre for the Promotion of Private Enterprise (CPPE) has revealed alarming statistics regarding the financial impact of employee fraud on Nigeria's micro, small, and medium enterprises (MSMEs). The organization estimates that these enterprises lose between ₦5 trillion and ₦10 trillion annually due to various forms of workplace corruption and fraud. In a statement by CPPE’s CEO, Muda Yusuf, the issue of occupational fraud has been highlighted as one of the most serious yet underreported threats to the entrepreneurial landscape in Nigeria.

The CPPE emphasizes that employee-related corruption encompasses a range of fraudulent activities including cash theft, payroll manipulation, procurement fraud, and inventory diversion. Such actions are not simply management issues but represent significant economic risks that can jeopardize business sustainability, investor confidence, and the overall growth of the national economy. The report paints a concerning picture, demonstrating how internal fraud is eroding the already diminished profit margins within the MSME sector.

This revelation calls for urgent action to address the underlying issues contributing to this widespread fraud. The CPPE suggests that both the government and business owners need to work together to implement more robust internal controls and foster a culture of integrity within workplaces. If left unaddressed, the increasing rates of employee fraud could have devastating repercussions not only on individual businesses but also on the broader economic stability of Nigeria.