Shocking revelations have emerged regarding the indictment of top officials at Nigerian bank Sterling Bank PLC for alleged money laundering, illegal deductions, forgery, and fraudulent mismanagement of over $122 million belonging to MIDEN Systems Ltd., following a detailed police investigation. The case, which involves serious banking malpractices, is now being scrutinized by the Nigerian authorities, with the matter reaching public hearings before the House of Representatives Committee on Public Petitions.
Documents exclusively obtained from official sources have uncovered disturbing evidence of fraudulent activities within Sterling Bank, including mismanagement of contract proceeds, unauthorized fund transfers, the opening of fake accounts in MIDEN Systems’ name, and forgery of bank documents. These actions violate numerous banking regulations, raising questions about the integrity of the institution.
The controversy dates back to June 2012, when MIDEN Systems Ltd., an indigenous oil services company, entered into a Term Loan/Vessel Finance Facility Agreement with Sterling Bank. The agreement was aimed at financing the acquisition of six Light Marine Vessels, essential for MIDEN’s contract with Shell Petroleum Development Company (SPDC). Under the deal, MIDEN contributed $7.3 million, while the bank provided $17 million in the form of a loan, with a repayment plan based on proceeds from SPDC contracts.
However, investigations by the police have revealed severe financial misconduct by Sterling Bank between 2016 and 2024. A police report, dated January 14, 2025, outlines how the bank misappropriated funds, made unauthorized payments from MIDEN’s account, and failed to provide account statements despite repeated requests from the customer. This lack of transparency concealed transaction records, falsified book entries, and created financial opacity in violation of the Central Bank of Nigeria (CBN) rules.
More troubling, the bank is accused of creating fake accounts in MIDEN’s name, including a 20-digit account, without the company’s authorization. Additionally, Sterling Bank allegedly consolidated MIDEN’s account with that of a different company, Chasewood Nigeria Limited, in a scheme to impose fraudulent debt obligations on MIDEN. Despite receiving over $57 million from SPDC between 2016 and 2024, Sterling falsely claimed that MIDEN owed an additional $30 million.
The police report further indicates that Sterling Bank misused a total of $122,768,041.69 credited to MIDEN’s account between May 2016 and July 2024, failing to disclose the sources and application of the funds. “The discoveries are shocking and sordid,” a source revealed.
One of the most alarming aspects of the case is the bank’s claim of disbursing a $30 million loan in one day—on January 13, 2017—which was purportedly applied for, approved, and processed in a single day. Investigators found that the loan application did not originate from MIDEN, and the bank forged several documents, including account officer reviews, credit committee approvals, and board resolutions. These forged documents were used to divert funds to private accounts believed to be controlled by top bank officials.
Furthermore, between 2016 and 2020, funds totaling $57.3 million and over six billion naira were allegedly received from SPDC but were not applied to reduce MIDEN’s supposed debt. Instead, they were channeled into accounts linked to bank insiders. In one fraudulent transaction, the bank transferred $28.3 million from MIDEN’s account on September 16, 2017, under a false scheme titled “AA Loan Repayment.”
As the matter escalates, the Nigerian Police Force has submitted the report to the House of Representatives, which has launched public hearings into the case. To avoid further embarrassment, Sterling Bank approached the Federal High Court in Lagos on February 5, 2025, seeking a restraining order to prevent further investigations. However, on April 30, 2025, the court adjourned the case, raising concerns about the legal process.
Legal experts and the Citizens Network for Consumer Rights, a consumer advocacy group, have condemned the revelations as a major financial heist, urging authorities to conduct a thorough investigation and prosecute those found responsible. The actions of Sterling Bank clearly violate provisions under the Cybercrimes (Prohibition and Prevention) Act 2015 and the Bank and Other Financial Institutions Act (BOFIA), particularly in relation to fraudulent banking practices.
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