First Bank has taken drastic measures in response to a significant internal fraud case, terminating over 100 employees after discovering a ₦40 billion fraud scheme.
The fraud, which reportedly took place over two years, involved Tijani Muiz Adeyinka, a manager on the operations team, who allegedly diverted funds using his position of authority.
Adeyinka, who is currently at large, approved unauthorized chargebacks to accounts he controlled. This major breach went unnoticed until its discovery in March 2024.
In July 2024, First Bank issued termination letters to at least 120 employees, including both full-time and contract staff, for their alleged failure to detect the fraudulent activities.
The bank’s management emphasized a zero-tolerance policy for supervisory negligence, indicating that such a large-scale fraud could not have been executed without the complicity or negligence of Adeyinka’s superiors [❞] [❞].
Following the fraud’s exposure, several employees were detained by the Nigerian Police Force for questioning and required to post bail for their release. Additionally, personal accounts of the implicated staff members have been restricted, allowing transactions only through their First Bank accounts.
This scandal has had wider repercussions, including the abrupt resignation of First Bank’s CEO, Dr. Adesola Adeduntan, in April 2024. His departure came just weeks after the fraud was uncovered, marking an end to his nine-year tenure with the bank [❞] [❞].
First Bank’s response highlights the financial sector’s vulnerability to internal fraud and the critical need for robust oversight and internal controls to prevent such incidents.
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