FirstBank denies N7bn fraud allegation, labels report unfounded

First Bank of Nigeria (FBN) has strongly denied claims of a N7 billion fraud within its institution, describing recent media reports as “unfounded” and lacking factual evidence.

The denial comes after a report by Tech Cabal alleged that the bank had suffered losses amounting to N7 billion due to unauthorized diversion of funds from multiple customers’ accounts by unknown individuals.

According to the report, the incident allegedly spanned several months before being uncovered.

In response, Olayinka Ijabiyi, FBN’s acting Group Head of Marketing and Corporate Communications, released a statement on Monday refuting the allegations.

“We have been made aware of a recent publication by Tech Cabal containing allegations of fraud involving our institution. We wish to categorically state that the story is entirely unfounded and not supported by any factual evidence,” the statement read.

The controversy surrounding First Bank has been fueled by ongoing scrutiny of its operations. Earlier reports suggested internal turbulence at the bank, particularly after the resignation of Adesola Adeduntan, the former Managing Director, amid allegations of negligence in handling a N60 billion electronic fraud case.

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Additionally, reports indicated that Folake Ani-Mumuney, the bank’s former Global Head of Marketing and Corporate Communications, was pressured to resign by Femi Otedola, Chairman of FBN Holdings. Her resignation reportedly stemmed from concerns over the “huge expenditure” incurred during the send-off party for Adeduntan.

While First Bank has acknowledged being aware of the allegations making rounds, it has unequivocally dismissed them as baseless. The bank emphasized its commitment to transparency, regulatory compliance, and customer trust.

“First Bank remains steadfast in its resolve to uphold the highest standards of corporate governance and customer service. Allegations such as these undermine public confidence, and we urge the media to exercise due diligence in verifying reports before publication,” the statement added.

The allegations come at a sensitive time for Nigeria’s banking sector, where concerns about electronic fraud and internal breaches have been rising. Experts argue that such reports—whether accurate or not—can erode public trust in financial institutions, particularly in an era of growing digital banking dependence.

Financial analysts note that First Bank, as one of Nigeria’s oldest and most reputable institutions, will need to navigate the situation carefully to preserve its market confidence. The bank’s swift rebuttal reflects its intent to counter what it describes as misleading information.

First Bank’s denial of the reported N7 billion fraud adds another layer to the ongoing developments within the institution.

While the bank has urged the public to disregard the allegations, the situation underscores the broader challenges of managing reputation and governance in Nigeria’s evolving financial landscape.