By BANNERNEWS Reporter, Calabar
Growing cases of employee theft, fraud and workplace sabotage are posing a serious threat to the survival of businesses across Nigeria, with investors warning that insider abuses are discouraging investment and undermining job creation.
The concern was raised by entrepreneur and former aide to former Vice President, Prof. Yemi Osinbajo, Philip Obin, following reports of an alleged multi-million naira theft involving workers at a hotel in Ibadan, Oyo State.
According to Obin, reports surrounding the incident indicated that a trusted employee allegedly worked with other staff members to divert hotel funds over an extended period. Bank transfer records linked to the alleged fraud were said to exceed N17 million within one year, excluding cash transactions and other reported losses.
Obin said the incident reflects a wider challenge confronting business owners across the country, many of whom are increasingly battling internal theft and financial leakages despite mounting economic pressures.
He noted that while public attention is often drawn to the amount stolen in such cases, business owners are more deeply affected by what they view as a betrayal of trust by employees recruited to help build and sustain their enterprises.
According to him, the problem has become so widespread that many investors now prefer passive investment options such as treasury bills, bonds, shares and real estate rather than operating businesses that require extensive staff management.
Obin said insider theft manifests in several forms, including cash diversion, inventory theft, inflated supplier invoices, manipulation of customer payments, creation of fictitious expenses and the unauthorised use of company resources.
He added that sectors such as hospitality, retail, agriculture, manufacturing, construction and petroleum marketing continue to record significant losses from employee misconduct, with many businesses forced to spend heavily on surveillance systems, supervision and internal controls.
Drawing from his own experience in the restaurant industry, Obin disclosed that employers frequently contend with the theft of food items, beverages, diesel, equipment, utensils and other operational materials, despite efforts to strengthen accountability measures.
He warned that persistent workplace dishonesty could lead to business closures, stalled expansion plans and reduced employment opportunities, stressing that the private sector remains Nigeria’s largest engine of job creation and economic growth.
Obin called on government to strengthen commercial law enforcement, improve security, reform tax policies and promote workplace ethics as part of efforts to create a more supportive environment for businesses. He, however, acknowledged that many Nigerian workers remain hardworking and trustworthy, while noting that some employers also contribute to workplace tensions through poor labour practices.
He urged stakeholders to confront what he described as a growing trust deficit between employers and employees, warning that failure to address the problem could discourage investment, weaken private enterprise and worsen unemployment across the country.
