First Bank In 40Bn Fraud Scandal Over 100 Employees Fired
In a sweeping crackdown, First Bank terminated over 100 employees in July 2024, four months after uncovering a massive ₦40 billion fraud orchestrated by Tijani Muiz Adeyinka, a manager on the operations team. The revelations were first reported by Daily Global News, exposing how Adeyinka allegedly used his authorization to approve chargebacks to accounts under his control.
Two sources with direct knowledge of the situation confirmed that at least 120 employees, including full-time and contract staff from the bank’s large operations department, received termination letters in July. Among those dismissed was the head of transactions at the time, underscoring the extensive impact of the fraud within the organization.
These employees were accused of negligence in their duties, with management asserting that such a large-scale fraud could not have occurred without the complicity or ignorance of Adeyinka’s superiors. “The CEO said there will be zero tolerance for supervisory negligence,” disclosed a First Bank employee who requested anonymity to speak freely.
Daily Global News’ initial report in May detailed how Adeyinka, who had final authorization authority on his team, managed to carry out his fraudulent activities undetected for two years. Following the discovery of the fraud in March, First Bank initially attempted to handle the matter discreetly, suspending several operations team members. However, the bank adopted a more aggressive stance once the fraud became public knowledge.
Employees implicated in the scandal were interrogated by the Nigerian Police Force (NPF) and detained at the Lion’s Building for up to six hours. According to sources, these employees were required to post bail before their release, and restrictions were placed on all their personal accounts except those with First Bank.
In a significant fallout from the scandal, First Bank’s CEO at the time, Dr. Adesola Adeduntan, resigned abruptly in April, eight months before his tenure was due to end. Dr. Adeduntan, who had been at the helm for nine years, was replaced by the board in April 2021, only for the Central Bank to block the move citing lack of regulatory approval, leading to his unprecedented third term. His sudden departure in April has been linked to the ongoing concerns over his tenure and the fraud scandal.
First Bank has yet to respond to requests for comments on the situation. The bank’s management has vowed to tighten internal controls and ensure stringent oversight to prevent future occurrences. As investigations continue, the financial sector will be watching closely to see how First Bank rebuilds its reputation and restores trust among its customers and stakeholders.
The scandal serves as a stark reminder of the vulnerabilities within banking operations and the critical need for robust internal controls to safeguard against fraud.
