Udenwa, Theresa A2023-12-102023-12-101998-12-14Alashi, S.O. The main Options'. Nigeria Deposit Insurance Corporation Quarterly Vol. 3, No. 2. (1993) 'Bank Failure Resolution: Adekanye, F. (1986) The Elements of Banking In Nigeria F & A Publishers Limited, Lagos. Benston, E.J. et al (1986) Perspectives on Safe and Sound Banking: Past, Present and Future. MIT Press, Cambridge Mass. Brigham, E.F. (1989)Fundamentals of Financial Management.The Drydcn Press, Chicago. Ebhodaghe, J.U. (1994) 'Effective Internal Control: Basis for Preventing and Detecting frauds.* Nigeria Deposit Insurance Corporation Quarterly Vol. 4, No. 1. Nwankwo, G.0.(1980) The Nigerian Financial System. Macmillan Publishers Limited, London, U.K.https://keffi.nsuk.edu.ng/handle/20.500.14448/974Banking fraud is an economic cankerworm that is fast eating deep into the fabrics of the banking sector of many economies including Nigeria. The adverse effects of this phenomenon can not be overemphasized because not only does it spell disaster for the banks and their customers but also for the entire economic system. In fact this ugly trend accounts for part of the high level of distress currently witnessed in the banking sector. An analysis of bank frauds in the Nigerian banking system shows that between 1989 and 1993, the level of frauds have been on the increase in both number and quantum. There is need, therefore, to examine the nature and causes of such frauds as to be able to recommend appropriate solutions and in the process establish the role of effective internal control. This is of importance not just to the Nigerian economy but to all those economies where banking fraud is prevalent.enArticle