A Lagos State civil servant has written Governor Babajide Sanwo-Olu over what he described as a growing wave of financial fraud allegedly perpetrated by some microfinance institutions.
In a letter dated October 13, 2025, the complaint narrated a shocking experience involving unauthorized withdrawals, fraudulent loans, and salary deductions linked to two major microfinance firms — Zedvance Microfinance Bank and Credit Direct Microfinance Limited.
According to the letter made available to Mushines News, the victim said his ordeal began on August 26, 2025, when he lost his mobile phone on his way home from work. The following morning, he discovered that a total of ₦318,000 had been illegally withdrawn from his Polaris Bank and Stanbic IBTC Bank accounts.
He further revealed that, beyond the withdrawals, unknown fraudsters allegedly used his SIM card on the stolen phone to secure loans of ₦1,000,000 from Zedvance Microfinance and ₦880,830 from Credit Direct Microfinance, all without his consent or documentation.
“Before I could retrieve my SIM card, the perpetrators had withdrawn ₦50,000 from the ₦1,000,000 loan and another ₦68,000 from the ₦880,830 loan,” the victim wrote. “To my surprise, the microfinance institutions said they did not require any physical verification before approving loans.”
He explained that despite lodging formal complaints at both institutions, deductions have continued from his monthly salary, with Zedvance and Credit Direct allegedly taking ₦69,133.33 and ₦55,156, respectively, through his salary account domiciled at Polaris Bank.
He also claimed that when he visited both offices to resolve the issue, he met other victims crying and protesting similar fraudulent deductions, suggesting the problem was widespread.
“They told me to refund the money transferred into my account before they could stop the deductions, which I have done completely. Yet, they have not refunded what was already taken from my September salary,” he added.
The complaint, who attached evidence of the transactions and refund receipts to his letter, appealed to Governor Sanwo-Olu to intervene and protect Lagos workers and residents from what he described as “the burden and suffering imposed by these financial institutions.”
“Many Lagosians and government staff are suffering through the unchecked actions of some microfinance institutions,” he wrote. “I plead with you, Sir, to use your good office to put a stop to this exploitation.”
Observers say the incident underscores the urgent need for stricter regulation and verification processes in the microfinance sector, especially amid rising cases of cyber-enabled financial fraud in Lagos State.