Synergizing Forensic Accounting and Whistle-Blowing in Nigeria’s Banking Sector: Legal Frameworks and Fraud Detection

Cite this article as: Ali-Momoh, B. O., Akomolafe, O. S., Adeola, K. J., Ogunya, O., Adebayo, K., Bamigbola, B. T., Akomolafe, F. O. & Olubo, M. V. (2025). Synergizing Forensic Accounting and Whistle-Blowing in Nigeria’s Banking Sector: Legal Frameworks and Fraud Detection. Zamfara International Journal of Humanities, 4(1), 111-125. www.doi.org/10.36349/zamijoh.2025.v04i01.012.

SYNERGIZING FORENSIC ACCOUNTING AND WHISTLE-BLOWING IN NIGERIA’S BANKING SECTOR: LEGAL FRAMEWORKS AND FRAUD DETECTION

By

ALI-MOMOH, Betty Oluwayemisi

AKOMOLAFE, Olayiwola Samson

ADEOLA, Kayode Joseph

OGUNYA, Omoniyi

ADEBAYO, Kehinde

BAMIGBOLA, Babajide Tolu

AKOMOLAFE, Funmilola Olubunmi

OLUBO, Muyiwa Victor

1-8 Department of Accounting, Faculty of Management Sciences, Federal University Oye-Ekiti, Ekiti State, Nigeria

Abstract: In the wake of the increasing global trend of corporate collapses, this study explores the intersection of legal systems, forensic accounting, and whistleblowing policies as mechanisms for enhancing fraud detection in Nigeria's banking sector. The study specifically explores how systems assist in detecting financial misconduct among Deposit Money Banks (DMBs). The general objective was to investigate the synergy between whistleblowing and forensic accounting practice, as guided by current legal frameworks, and ascertain their joint effectiveness in unveiling corporate fraud in Nigeria's banking industry. The study adopted a survey research design in which structured questionnaires were administered to 83 forensic accountants practicing in Nigeria's DMBs. A census sampling technique was utilized to covered the entire population due to the small and specialized population. Quantitative data analysis, including correlation procedures, was utilized to determine the strength and statistical significance of the whistleblowing practices and forensic fraud investigation relationship. Findings shows that there is statistically significant correlation between whistleblowing activities and the effectiveness of forensic accounting in fraud detection at 5% level of significance (p < 0.05). Further, the study indicates the mandatory role played by good corporate governance, effective internal controls, and advanced forensic accounting techniques in facilitating fraud detection. The findings concluded that whistleblowing and forensic accounting supported by appropriate legal and institutional frameworks, are crucial for promoting transparency and financial integrity in the banking sector. Traditional accounting processes overlook financial malpractices, whereas forensic processes combined with protected whistleblower disclosures offer a better fraud detection mechanism. The study recommends the enactment and enforcement of robust whistleblower protection legislation with integration of emerging technology such as artificial intelligence, machine learning, and blockchain to speed up and enhance the precision of fraud detection in Nigerian banks should be established.

Keywords: Forensic Accounting, Whistle-blowing, Internal Control, Corporate Governance, and Auditor Independence.

INTRODUCTION

Fraud and fraudulent activities are so prevalent in the Nigerian banking system from the most junior staff to the most senior personnel. Huge frauds do happen in banks, even amongst employees and operational staff who commit fraud to their level of position (Apalowowa et al., 2025). Vutum et al. (2025) an increase in fraudulent activities, these scams have an impact on everyone from the developing economies to the banks, investors, and ultimately on the individuals. Therefore, fraud can be defined as the intentional and secret devaluation of an asset with the intent to profit from it (Shehu, 2025). The recent high rates of bank collapses have cast into doubt the credibility of the traditional auditing process as it relates to the Nigerian banking system. Given the prevalence of bank fraud and bank collapses, the traditional audit process has come under question for its reliability (Apalowowa et al., 2023a). Corporate governance refers to the structures, processes, and practices that ensure an organization is directed and controlled in a way that aligns with its objectives and stakeholders' interests. Apalowowa et al. (2023) opined that auditor independence is a cornerstone of the auditing profession, essential for ensuring the reliability and integrity of financial statements and maintaining public trust in the financial reporting process. Using forensic auditing expertise appears to be a magic bullet that will help to combat fraud and show the preventive role of conventional auditing to become effective and build integrity attributes for an auditor. Forensic auditing gained prominence as a result. Felix (2022) posits that forensic auditing is thought to have developed in response to specific newly fraud-related cases. Financial fraud is growing, and forensic auditing must now be included in the arsenal of instruments required for the successful investigation and prosecution of those responsible for illegal activity (Apalowowa et al., 2023a; Oladejo & Jack, 2020).

Statement of the Problem

The fraud scandals that came closest to bringing down the corporate world were those involving Enron, Arthur Anderson, and WorldCom. These events showed how badly forensic auditing is needed because the frequent fraud cases in Nigerian Deposit Money Banks have completely destroyed customers' trust in banks. The general public's trust in higher institutions in Nigeria and citizens' trust in them have also made people doubt the honesty of the management, staff, internal auditors, and even external auditors. The fraud committed by Heritage Bank's executives in Nigeria in 2024 led to the bank's demise. Examining the interplay between whistle-blowing and regulatory compliance in the discovery of fraud within the banking industry.

LITERATURE REVIEW

Theoretical Review

The following two theories were considered: Forensic accounting theory and strain theory. However, the study is hinged on forensic accounting theory as the best theory that explains the preventive measures in safeguarding both financial and non-financial assets of an organization.

Forensic accounting theory

Forensic accounting theory looks at how the accounting and non-accounting decisions made at the start, during, and at the end of the investigation process affect the choice of forensic detection methods and techniques used, and the interpretation of the findings of forensic investigation. The examined studies concur that forensic accounting is not an impartial method. Nonetheless, the subtleties differ. Apalowowa et al. (2023) and Daraojimba et al. (2023) underscore the integration of investigative choices within contextual judgements, whilst Alshurafat et al. and Al Shbeil et al. highlight the ethical justifications and ramifications for justice and equity in forensic procedures. The unifying factor is the acknowledgement that both technical and ethical factors influence forensic accounting methods. A significant void remains in experimentally examining how accounting and non-accounting actions affect particular forensic outcomes in various legal or cultural contexts. Alharasis et al. (2023) assert that forensic accounting theory suggests that the choice of methods or techniques used to detect creative accounting or manipulations in financial reporting, and the outcome of using such methods or techniques, reflect the accounting and non-accounting decisions that were taken into consideration by the forensic accountant or investigator. Some working assumptions are that the humane objective of a forensic investigation exercise is to identify and uncover unresolved issues and recommend corrective actions that discourage such behavior from occurring again (Alshurafat et al., 2023). Such corrective actions include the imposition of fines, and imprisonment. Without this assumption, forensic investigators may seek the downfall of the corporation or the individual they are investigating for criminal suspicion (Al Shbeil et al., 2022). Therefore, this assumption is crucial because it eliminates the personal judgmental bias of the forensic investigator, and prevents the personal bias of forensic investigators from interfering with the forensic investigation.

Strain Theory

Strain Theory was introduced by Robert K. Merton, which assumes that individuals feel strain and pressure when they cannot achieve socially accepted go51als through legitimate means (Ogbu, 2017). Based on this strain theory, as a result of economic crime, individuals may turn to fraud or embezzlement when they feel economically blocked or incapable of reaching success through ‘legitimate’ means (Audu & Garba, 2021; Adamu & Bala, 2020). Under the assumption that limited legitimate opportunities obstruct the achievement of culturally endorsed goals, Choi and Kim, 2020 argued that “strained or pressured individuals turn to various forms of deviant and/or criminal behavior as a means to accomplish their wants. Strain theory explains that there is a cultural standard of desirable goals in society, for example, financial success; a good education; and social standing; and this set of goals is largely encouraged and supported in a given society (Oyebade, 2016). Yet not everyone has the same access to resources and opportunities to attain these goals through legitimate means such as education, employment and legal business practices (Efiong, 2012). Strain occurs when individuals face impediments to obtaining such goals. The theory helps to understand the prevalence of work-related crimes, such as fraud, embezzlement, or tax evasion, that might take place because people feel pressured or frustrated for not being able, through legitimate means, to access success (Choi & Kim 2020; Omonyemen et al., 2017). For example, a financially struggling, non-promoted financial manager might commit fraud in order to attain the financial prosperity he believes necessary for social acceptance or for self-.fulfillment.

Conceptual Review

Concept of Forensic Accounting

Afriyie et al. (2023) articulates that forensic accounting is a specialized field within accounting that focuses on the application of accounting principles and techniques to investigate and analyze financial data for legal purposes. It combines accounting, auditing, and investigative skills to uncover and resolve issues related to financial fraud, misconduct, and disputes (Felix, 2022). Forensic accountants play a crucial role in legal proceedings, helping to provide clarity and evidence in cases involving financial crimes, litigation, and regulatory compliance (Eiya & Otalor, 2013). Forensic accountants use various techniques to identify irregularities and anomalies in financial records that may indicate fraudulent activities and employ methods such as data analysis, forensic analysis of financial documents, and interviews to uncover evidence of fraud (Apalowowa et al., 2023).

Whistle-Blowers

A whistleblower is an individual who reports misconduct, fraud, and abuse within an organization to authorities or external entities, the misconduct includes a wide range of activities, such as financial fraud, environmental violations, workplace harassment, or safety breaches (Abdullahi & Adamu, 2022). Whistleblowers may be employees, contractors, and even outsiders who have insider knowledge of the wrongdoing (Yahaya et al., 2024). The act of whistleblowing is often driven by a sense of moral duty and ethical responsibility (Usman & Bala, 2021). Whistleblowers frequently come forward because they feel that their conscience cannot tolerate the continuation of harmful and illegal activities they have observed (Yahaya & Musa, 2021). Their disclosures lead to critical investigations, corrective actions, and reforms that prevent further damage and uphold the rule of law. According to Miceli et al. (1985) whistle-blowing is defined14 as the disclosure by a current or former member of an organisation of unlawful, immoral, or illegitimate acts under their employers’ control to persons or organisations that may be able to take action.

Internal Controls

Stephen et al. (2025) assert that internal control means a systematic process implemented by an organization's management and personnel designed to provide reasonable assurance regarding the achievement of objectives related to operational effectiveness and efficiency, reliable financial reporting, and compliance with applicable laws and regulations. Adeleke et al., (2019), posit that the primary purpose of internal control is to safeguard assets, ensure the accuracy and completeness of financial records, and prevent and detect errors, fraud, and other irregularities. An effective internal control system encompasses a range of activities and practices that are integrated into the organization's operations (Apalowowa et al., 2023b). Internal control is an essential tool for ensuring that an organization's operations are conducted in a manner that is consistent with its goals and regulatory requirements.

Corporate Governance

Corporate governance involves the interplay between various stakeholders, including shareholders, boards of directors, management, employees, customers, suppliers, and the wider community (Ogbu, 2017). The effectiveness of corporate governance is crucial for maintaining investor confidence, ensuring compliance with laws and regulations, and fostering a culture of integrity and responsibility within the organization. Oyebade (2016) postulates that corporate governance is the structures, processes, and practices that ensure an organization is directed and controlled in a way that aligns with its objectives and stakeholders' interests. Okonta Nnamdi (2025) postulate that corporate governance encompasses the framework of rules, relationships, systems, and processes within and by which authority is exercised and controlled in corporations.

Auditor's Independence

Apalowowa et al (2023) is a cornerstone of the auditing profession, essential for ensuring the reliability and integrity of financial statements and maintaining public trust in the financial reporting process. Nirali and Dharini (2023) posit that auditor’s independence is a critical element of the auditing profession that ensures the reliability, objectivity, and credibility of financial reporting. As posited by Akinbowale, et al., (2020) cited in Oyebade (2016) that adhering to stringent independence requirements, implementing effective safeguards, and addressing potential conflicts of interest, auditors can maintain the trust of stakeholders and contribute to the integrity of financial markets and corporate governance.

Empirical Review

Apalowowa (2025) examined the connection between white-collar fraud and whistleblower investigation. The research employs a survey technique with data obtained directly from the respondents; the population under investigation comprise 83 forensic auditors from the southwest of Nigeria. Census Sampling Technique was employed in the selection of the entire population to be examined. His results indicate that although the efficiency of forensic audits is positively related to whistleblowing, internal controls, and corporate governance, none of the variables produced statistically significant outcomes at conventional levels (p > 0.05). The values of the z-statistics of 1.2521 for corporate governance, 1.1783 for internal controls, and 1.1647 for whistle-blowing tell us that the relationships are a result of random fluctuation rather than actual cause-and-effect relationships.

Apalowowa et al. (2025) had studied the preventive function of the forensic auditor with the introduction of forensic auditing. The research employed purposive sampling techniques using a survey approach based on a questionnaire. The study population was 210 staff of the three state government-owned colleges in Ondo State who were employed in the Audit Departments (Source: Attendance Register, 2025). The research covers 120 senior staff with ICAN and ANAN certification. Their findings indicate that responsive planning methods are statistically insignificant, but robust internal control and managerial supervision are statistically significant, with p-values of 0.0000 and 0.00105, respectively.

Vutumu et al. (2025) discuss the complementary functions of forensic accounting and internal controls in avoiding fraud in the Nigerian public sector. The research purports to assess the interaction between the Fraud Pentagon Model and the COSO framework in fraud risk prevention. A quantitative methodology was adopted, and primary data were gathered from 385 finance, accounting, auditing, and forensics professionals in federal ministries and organizations. A Likert-scale questionnaire was applied to measure the effectiveness of the internal controls, forensic accounting practices, and the occurrence of fraud risk factors. Descriptive statistical analysis was conducted with the help of SPSS software to establish trends and correlations in the data. The study supported the occurrence of all five factors of the Pentagon fraud model: pressure (mean 3.50), opportunity (3.31), motivation (3.47), capability (3.34), and personal ethics (3.47), which suggested a high likelihood of fraud. The control components were moderately strong, whereby control measures (mean = 3.50) and monitoring (3.49) were the strongest, followed by risk assessment (3.27) and communication practices (3.36) as relatively lower. The forensic accounting techniques contributed significantly to fraud prevention through delegation of reliance on control systems (3.42), number of reviews of digital fraud (3.39), and submission to ethical philosophy (3.39).

Okonta and Nnamdi (2025) examine the application of Artificial Intelligence (AI) in fraud investigations for fraud detection in Nigerian enterprises. With traditional methods falling short in the era of mounting complexity in fraudulent activities posing a threat to business survival, the study examines the manner in which AI technology can facilitate improvement in investigative techniques. This study employs a documentary method in examining the use of data analytics, machine learning algorithms, and predictive modeling in enhancing the speed, accuracy, and efficiency of fraud detection. In spite of the limitations in implementation in the Nigerian scenario, evidence suggests that AI-based forensic techniques enhance the efficacy of fraud detection and prevention via active surveillance.

Atmadja et al. (2024), decided the impact of internal control frameworks, consistency with human asset guidelines, and abilities on bookkeeping misrepresentation in the territorial monetary administration of the Gianyar Rule in Indonesia. The exploration strategy utilizes quantitative and information examination methods, including various relapses and examination of a survey replied to by the staff of the territorial work unit in Gianyar Rule. Examining in this study utilizes Non-Likelihood testing with a Purposive Inspecting strategy, their discoveries uncovered that the inward control framework adversely affects bookkeeping extortion, administrative consistency likewise adversely influences bookkeeping misrepresentation, and human asset skill affects bookkeeping extortion in the Provincial Work Unit in Gianyar Rule.

Romero-Carazas (2024) analyzes forensic auditing and the use of artificial intelligence through a bibliometric analysis in Scopus and a systematic literature review. The samples were documents selected using Boolean operators with keywords in English (Forensic and auditing, artificial and Intelligence), analyzed in Excel and VOS viewer. This research points out that forensic auditing and the use of artificial intelligence have advanced, in the variety of topics covered, the prominence of perpetrators, and the accessibility of crucial data. Their findings maintain the quality and integrity of their work, forensic auditors must adapt to technological advances, train in the use of artificial intelligence, and collaborate with other specialists and professionals.

Odeyemi et al. (2024) delve into the contemporary landscape of forensic accounting, focusing on the integration of cutting-edge technologies and digital methodologies. It underlines the significance of forensic accountants staying abreast of technological advancements to effectively navigate the intricate terrain of financial fraud in the modern era. The Review encapsulates the primary themes explored in the review, including the application of data analytics, artificial intelligence, blockchain, and machine learning in forensic accounting practices. It highlights the dynamic nature of financial crimes, requiring forensic accountants to adopt agile and innovative approaches to keep pace with fraudulent activities conducted through digital channels.

Olutimehin et al. (2024) evaluate current corporate governance practices in Nigerian enterprises, emphasizing strengths such as board composition, financial reporting, and compliance mechanisms, while also addressing weaknesses such as board independence, executive compensation, and risk management frameworks. It explores the impact of cultural, social, and economic factors on governance dynamics, acknowledging the need for context-specific approaches tailored to Nigeria's unique business environment. Investing in stakeholder engagement initiatives that prioritize dialogue, collaboration, and shared value creation, aligning business objectives with societal needs and expectations. Incorporating technology-driven solutions to facilitate real-time communication and feedback loops with stakeholders, leveraging digital platforms for transparent and responsive engagement.

Chidi et al. (2024) aims at evaluating the impact of internal control systems on the operational efficiency of supermarkets by examining factors such as periodic job description updates, documentation and record retention, time and leave reporting, division of labor, physical restrictions to unauthorized units, and firewall security. The research design employed in this study is a quantitative approach, and data was collected through survey questionnaires. The total population used for this study is 192 staff in the main Supermarkets in Awka, Anambra state. The sample size of the study was determined using Krejcie and Morgan (1970) formula. Multi-Linear regression technique was employed in analyzing the data to determine the extent of relationship that exists between the dependent and independent variables. Their study discovered that various components of internal control systems significantly influence operational efficiency.

Okwuokei (2024) examines the role of whistleblowing in combating corruption in Nigeria and underscores the critical need for enabling laws to safeguard and empower whistleblowers. The analysis includes a discussion on the dual nature of whistleblowing its potential benefits in exposing wrongdoing and the severe risks faced by whistleblowers. The absence of protective legislation has left whistleblowers vulnerable, often facing harassment, intimidation, and loss of employment. Drawing parallels with the United States, where comprehensive laws such as the Whistleblower Protection Act provide robust safeguards, the paper advocates for the urgent enactment of similar legislation in Nigeria.

Yahaya et al. (2024) assess the impact of the whistleblowing policy on corruption levels in Niger State. The study employs a mixed-methods approach, combining qualitative and quantitative research methods using a survey research approach by adopting a primary source of data collection in the use of questionnaires. The study's participants are staff of stakeholders, including government officials, whistleblowers, and representatives from civil society organizations in Niger state simple random sampling was used to sample several 300 respondents for the study. The study utilizes multiple regressions adopting simple percentage, mean, rank, and frequency count for data analysis. Their findings of reveal whistleblowing policy has reduced corruption in the Niger state, whistleblowing policy has been in deterring corrupt practices and increased transparency and accountability in government institutions in Niger state.

Apalowowa et al. (2023) investigated a study on how forensic accounting practices affect fraud investigation, fraud prevention, and fraud detection in Nigeria's State Pension Board. Used primary sources of data to implement a survey research design. 186 senior employees of the State Pension Board in the three states that were chosen made up the study's population, both stratified sampling and census sampling techniques were utilized in the investigation, and the Ordinary Least Square Regression approach was used. Their findings showed that forensic accounting significantly affects the investigation, prevention, and detection of fraud. The results also showed that fraud prevention and detection are statistically significantly influenced by internal audit, accountability, and transparency techniques.

Wokeh (2020) examined the effect of internal control on the financial performance of listed deposit money banks in Nigeria. The triangulated research design was employed for the study. The population of the study consists of two hundred and twenty (220) respondents drawn from the thirteen (13) listed deposit money banks. Multiple regression analysis was used to test the formulated hypothesis computed with the aid of Stata12 statistical software. The study revealed a negative and insignificant effect of the control environment on the net profit margin of listed deposit money banks in Nigeria and the existence of a positive but insignificant effect of risk assessment on the net profit margin of listed deposit money banks in Nigeria.

Gap in the Literature

Due to the extreme prevalence of fraud, auditing and investigation methods are no longer useful for identifying, stopping, and minimizing the fraud faces every establishment. The most frequently cited fraud scandals that nearly brought down the business world were those involving Enron, Arthur Anderson, and WorldCom (Olutimehin et al., 2024; Odeyemi et al., 2024; Yahaya et al., 2024; Apalowowa et al., 2023; & Wokeh, 2020). Examining the gap in the literature on forensic accounting and whistleblowers as investigative tools for identifying irregularities in the Nigerian banking industry involves understanding several key areas where previous research studies lacking and this study expanded. The existing research focus separately on forensic accounting and whistleblowing. Meanwhile this study integrate both forensic accounting and whistleblowing mechanisms as complementary tools in the Nigerian banking sector, and these two approaches are combined effectively to improve detection and prevention of financial irregularities. Adequacy of training and skill development programs for forensic accountants and potential whistleblowers in Nigeria’s banking sector are not established. By addressing these gaps, this study contribute to a more comprehensive understanding of how forensic accounting and whistleblowing leveraged to improve financial integrity in Nigeria’s banking industry.

Methodology

This study employed a survey approach, utilising a structured questionnaire to gather primary data from forensic accountants in Deposit Money Banks (DMBs) in Nigeria. The utilisation of a questionnaire was considered suitable owing to the sensitive nature of fraud-related subjects, which renders respondents hesitant to disclose records or furnish information in open or unstructured formats. The research concentrated on Deposit Money Banks (DMBs), particularly commercial banks. This sector was chosen because to recent prominent fraud cases, notably the Heritage Bank Plc scandal, which exposed systemic weaknesses in internal controls and whistle-blowing procedures inside Nigeria's banking system. The target audience consisted of eighty-three (83) forensic accountants engaged in various Deposit Money Banks throughout Nigeria. These experts engage in fraud detection and forensic investigations, enabling them to evaluate the function and efficacy of forensic accounting and whistle-blowing systems. Due to the very limited population size, the study utilised the census sampling technique, which entails the inclusion of all population members in the sample. This methodology was warranted as it allows the research to obtain a thorough and representative viewpoint from all accessible professionals in the domain, hence mitigating sampling bias and enhancing the validity of the results. Data was gathered through a structured questionnaire aimed at eliciting responses regarding the impact of forensic accounting processes and whistle-blowing methods on mitigating fraud within the Nigerian banking system. The tool comprised closed-ended items, assessed by a four-point Likert-type scale organised as follows: 4 = Strongly Agree; 3 Agree; 2 = Disagree; 1 = Strongly Disagree. The choice of four-point scale was deliberately selected to exclude a neutral response choice, so prompting respondents to adopt a definitive position on each assertion, which is especially beneficial when addressing subjective yet sensitive topics such as fraud control and ethical practices. Notwithstanding, the application of the census technique and the utilisation of a meticulously designed instrument guaranteed the preservation of data quality and representativeness, rendering the findings robust and contextually pertinent.

Data Analysis

Results of the regression analysis on the data collected from forensic accountants in Deposit Money Banks (DMBs) in Nigeria provide an understanding of the relationship between the whistle-blowing mechanism and forensic accounting procedures in enhancing fraud detection and financial soundness. The positive coefficient indicates that whistle-blowing has a significant influence on the effectiveness of forensic accounting in fraud detection and prevention. Specifically, a one-unit increase in the effectiveness of whistle-blowing is associated with a 54.2% improvement of forensic accounting performance, particularly in the application of internal controls, auditor independence, and mechanisms of corporate governance. This underpins the instrumental character of whistle-blower systems as a motivator towards fraud detection and ethical accountability in Nigerian banks. This represents 42.5% of forensic accounting effectiveness variability being explained by whistle-blowing activity. This is a moderate explanatory power but also shows that there are other variables (such as regulatory environment, management commitment, and technology tools) which also have an equally important effect on forensic outcomes. After adjusting for the model's predictors' number, 40.2% of variance remains explained, indicating a consistent and reliable model. This is a witness to the robustness of the relationship between whistle-blowing and forensic practice. The value falls into an appropriate range (1.5-2.5), indicating that autocorrelation is not problematic with the model's residuals. This is an indication of validity for the regression estimates. The fact that AIC and Hannan-Quinn are negative reflects that the model is properly balanced between explanatory power and simplicity. The fact that log-likelihood is high reflects that the model explains the data very well, adding to the robustness of the relationships found. Since whistle-blowing is highly correlated with forensic accounting performance, companies need to institutionalize safe and confidential whistle-blower programs. This allowed for early identification of fraud, reduce financial losses, and ensure an open financial culture, since whistle-blowing is beneficial to internal controls and auditor independence, regulatory agencies and board committees should include forensic reporting and whistle-blower protections in corporate governance codes to prevent financial misconduct. The report highlights the requirement of skilled forensic experts to deliver actionable investigations from reports submitted by whistle-blowers. Training and continuous professional development are imperative with the statistical information, policy makers need to revisit current legislation and enforcement mechanisms of whistle-blower protection in Nigeria. Confidentiality and protection to the whistle-blowers will establish trust in the system and improve reporting levels.

Table 1: Relationship between Forensic Accounting and Whistle-blowers for Identifying Irregularities in the Nigerian Banking Industry

Variable	Coefficient	Std. Error	t-Statistic	P-value
C	0.545209	0.360201	1.513624	0.1344
Internal_Control	0.326395	0.117151	2.786099	0.0038
Whistle_Blowing	0.321781	0.091005	3.535846	0.0007
Auditor_Indep	0.170325	0.118769	1.434089	0.1558
Corporate_Gov	0.424847	0.081063	1.132115	0.0020
R-squared	0.425614	Mean dependent var		3.185065
Adjusted R-squared	0.402010	S.D. dependent var		0.290764
S.E. of regression	0.224847	Akaike info criterion		-0.096239
Sum squared resid	3.690614	Schwarz criterion		0.025517
Log likelihood	7.705220	Hannan-Quinn criter.		-0.047538
F-statistic	18.03078	Durbin-Watson stat		1.661854
Prob(F-statistic)	0.000000

Source: Authors’ Computation (2024)

The Heteroskedasticity robust standard error estimates the variance ratio for 1.164 tells that magnitude of bank fraud is considerable, and even managers and operational staff commit fraud up to the level of their position. 1.178 for internal control the high frequency of bank failures has been considerable worry recently over the legitimacy of the conventional auditing procedure in the Nigerian banking sector, and corporate governance with a variance ratio of 1.252 that quick action is needed by given the severity of the banks' harm in Nigeria. The maximum joint test value 1.398 with P-value 0.412 indicates that bank fraud has been so prevalent and has resulted in bank collapses, that there has been doubt about the integrity of the standard audit procedure and whistleblowing as reporting of wrongdoing within an organization to internal and external parties to (Sarbanes-Oxley Act, 2002) has attracted legislative attention in the Western World. Auditor independent appears to be a magic bullet that will help to combat fraud and show the preventive role of conventional auditing to become effective and build integrity attributes for an auditor.

Table 2: Cumulated Forensic Accounting and Whistle-Blowing Martingale
Joint Tests		Value	Df	P-value
Max |z| (at period 2)*		1.397595	77	0.4120
Individual Tests
Variable	Var. Ratio	Std. Error	z-Statistic	Probability
Whistle_B.	1.164725	0.117863	1.397595	0.1622
Interanl_Co.	1.178291	0.174615	1.021050	0.3072
Corpo_Gov.	1.252112	0.217376	1.159793	0.2461
*Probability approximation using studentized maximum modulus with parameter value 3 and infinite degrees of freedom. Test Details (Mean = 3.18506493506)
Period	Variance	Var. Ratio	Obs.
Whistle_B.	0.08454	--	77
Interanl_Co.	0.09847	1.16473	76
Corpo_Gov.	0.09962	1.17829	75
Auditor_Indep	0.10586	1.25211	74

Source: Authors’ Computation (2024)

Discussion of Findings

Based on the findings from this study, it clearly stated that the relationship between forensic accounting and whistle-blowing fraud investigation: an investigative tool for identifying irregularities in the Nigerian banking industry has a significant relationship at a 5% level of significance. Meanwhile, forensic accounting, internal control, and corporate governance have a significant influence on whistle-blowing fraud investigations in the Nigerian banking industry. Whereas, auditor independence has an insignificant relationship with whistle-blowing fraud investigations. The findings from this study align with the findings of Ozili (2020) who examined forensic accounting theory as an explanation of why and how the choice of methods and techniques used to detect creative accounting or fraudulent manipulations in financial reporting, and the outcome of using such methods or techniques, depends on the accounting and non-accounting decisions taken into consideration by the forensic accountant or investigator. His findings and contribution to accounting theory and forensic science are useful to the problem-solving process in the global fight against financial crime. The finding contradicted the outcome of Apalowowa et al. (2023) whose findings revealed that internal audit technique, accountability technique, and transparency technique have statistically significant influence on fraud prevention and detection.

Conclusion and Recommendations

The study concluded that establishment of legal protections and offer incentives such as financial rewards, confidentiality to motivate whistle-blowers to disclose unethical or fraudulent activities without the risk of retaliation. Financial institutions in Nigeria needs to establish institutional support for forensic accounting units require collaboration at the management level with forensic auditors and assure the incorporation of forensic accounting tasks into fundamental banking processes, supported by financial and infrastructural resources. The study recommended that deposit money banks (DMBs) should implement sophisticated technologies for fraud detection utilise artificial intelligence and machine learning technologies to improve forensic accounting's ability to promptly and effectively detect intricate fraud schemes; and allocate resources for the ongoing education of financial staff and forensic specialists in contemporary fraud detection methodologies, prioritising digital forensic instruments and ethical principles.

Implication

Improving whistle-blowing frameworks with forensic accounting performance, deposit money banks need to institutionalize safe and confidential whistle-blower programs. This would allow for early identification of fraud, reduce financial losses, and ensure an open financial culture.

Regarding Policy

i.        Formulate and implement stringent whistleblower protection laws, encompassing anti-retaliation provisions and secure reporting mechanisms.

ii.      Establish policy frameworks that require the incorporation of forensic units and technology in banking regulatory systems.

Practice

i.        Educate bank personnel on forensic instruments and fraud signs to facilitate early identification.

ii.      Establish internal reporting frameworks and assurance processes that promote ethical behaviour and financial transparency.

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