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First Bank of Nigeria, a leading financial institution with a market capitalization of ₦829 billion, has initiated legal proceedings to recover a substantial sum of money allegedly embezzled by an employee based at its Iganmu head office. The suspect, Tijani Muiz Adeyinka, is now at large and accused of diverting ₦40 billion ($29 million) into multiple bank accounts, including one belonging to his wife.
The diversion, initially estimated at ₦12 billion, has grown to the staggering amount of ₦40 billion, according to sources within the bank. First Bank reported the incident to the Nigerian Police Force on March 25, 2024, and subsequently secured court orders between April 4 and April 8, 2024, to freeze hundreds of accounts implicated in the fraud.
Muiz, a manager in the electronic products team, exploited his role’s authority to process customer reversals. Instead of crediting legitimate reversal requests, he allegedly funneled funds into accounts under his control, evading detection for nearly two years. The scheme was uncovered after a customer complaint led to an internal investigation, revealing numerous suspicious transactions.
A letter from First Bank to the Lagos State Commissioner of Police dated May 10, 2024, formally requested a thorough investigation and the apprehension of those involved. Despite multiple attempts, First Bank and the Nigerian Police Force have not commented on the ongoing case.
Court documents and police statements indicate that Muiz directed funds to his wife’s Zenith Bank account, which were subsequently dispersed to 34 additional accounts and further distributed to 1,190 other accounts across various banks. This extensive network complicated the investigation and recovery efforts.
While First Bank has not disclosed the total amount stolen in its communications, the gravity of the incident underscores the persistent threat of fraud within Nigeria’s financial sector. Despite a reported decline in fraud cases in Q1 2024, major banks remain vulnerable. In 2023, Access Bank and Fidelity Bank reported losses of ₦6.15 billion and ₦2.5 billion, respectively, due to fraudulent activities.
In response to the incident, First Bank obtained multiple court orders to freeze the implicated accounts. On April 8, a Federal High Court in Lagos issued an order to block the accounts of first and second beneficiaries. Additional orders were secured on April 8 and May 5 from courts in Jalingo and Lagos to freeze further accounts linked to the fraud.
One of the beneficiary accounts reportedly used some of the stolen funds to purchase the stablecoin USDT from various cryptocurrency traders. These traders, who deny knowledge of the fraud, are now embroiled in a legal battle with First Bank, facing restrictions on their accounts.
The investigation continues as authorities work to unravel the full extent of the fraudulent scheme and recover the diverted funds.