N1.2bn Sterling Bank Theft: Court Orders Forfeiture After System Glitch

Justice A.B. Mohammed delivered the verdict in favor of the Federal Government, representing the impacted bank.

In a statement released by the Economic and Financial Crimes Commission (EFCC) on Monday, it was revealed that multiple individuals took advantage of the bank’s technical glitch to illegally access and divert the funds.

EFCC Probe and Legal Action

The Economic and Financial Crimes Commission (EFCC) initiated an investigation following a complaint from a financial institution alleging a N2.5 billion fraud. The probe successfully traced the misappropriated funds to multiple accounts.

According to the EFCC, the funds targeted for forfeiture were held in the following accounts: M Sharif Inter-Trading and Marketing Company Ltd.’s UBA account (N900,000,000); Mustapha Abubakar’s UBA account (N255,872,842.84); Mustapha Sharif Abubakar’s UBA account (N12,195,093); Mustapha Sharif Abubakar’s Jaiz Bank account (N41,119,917.13); Abubakar Mustapha Sharif’s First Bank account (N19,069,567.73); and Mustapha Sharif Abubakar’s Sterling Bank account (N30,850,158.12).

What Transpired in Court 

• The court had, on March 12, 2025, granted an interim forfeiture order of the funds and also directed the publication of the same in a national daily for any interested party to show cause why the money should not be finally forfeited to the Federal Government.
• A motion on notice dated January 8, 2025, and filed by the Economic and Financial Crimes Commission, EFCC, through its counsel, Hannatu U. KofarNaisa, was subsequently moved in court.
• Moving the motion for the final forfeiture order, the EFCC legal team told the court that the money was reasonably suspected to be proceeds of unlawful activities and deserved to be forfeited permanently.
• The EFCC also informed the court that the Commission had published the interim forfeiture order in The Punch newspaper of March 24, 2025, for any interested party to show cause why the final order of forfeiture should not be made in favour of the Federal Government of Nigeria.
• Justice Dipeolu, after listening to the submissions by the EFCC, held that “having gone through the motion and attachments, I find the application meritorious and same is accordingly granted.”
• Consequently, the judge ordered the final forfeiture of the money to the Federal Government of Nigeria in favour of Sterling Bank Plc.

Related Development 

A related development occurred in 2024 when a Federal High Court, Abuja, granted an interim freezing order against several accounts in FairMoney Microfinance Bank Ltd, PalmPay Limited, and Opay Digital Services Limited, mandating the organizations to reverse N139,630,000 credited to some of their customers and account holders as a result of a “system glitch” at TAJ Bank Ltd.

The order was made following a motion ex parte filed by TAJ Bank Ltd and six of its customers on July 23, 2024, in suit number FHC/ABJ/CS/1018/2024 against the three organizations.

The Nigerian Interbank Settlement System Plc was listed as the fourth respondent.

A consultant advises that by adopting safer banking habits, strengthening institutional security frameworks, and fostering stronger collaboration among stakeholders, financial institutions can minimize risks while continuing to enjoy the benefits of a secure and efficient digital financial system.