Court orders forfeiture of over N1.2bn stolen from Sterling Bank

The Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of a total sum of ₦1,292,798,746.81 to the Federal Government of Nigeria, following its criminal withdrawal from Sterling Bank Plc due to a system malfunction.

The court ruled that the forfeited funds, although now returned to federal custody, are to be remitted in favour of Sterling Bank, the original victim of the financial fraud.

This ruling was delivered by Justice D.I. Dipeolu, as disclosed in a statement released by the Economic and Financial Crimes Commission (EFCC) on Saturday

The case stemmed from a system glitch at Sterling Bank that led to the unauthorized withdrawal of ₦2.5 billion by multiple individuals. Upon receiving a petition from the bank, the EFCC launched an investigation that led to the identification and tracing of the illicit funds across several bank accounts linked to the suspects.

According to the EFCC, the funds were found in the following accounts: ₦900,000,000 in M Sharif Inter-Trading and Marketing Company Ltd.’s UBA account; ₦255,872,842.84 in Mustapha Abubakar’s UBA account; ₦12,195,093 in Mustapha Sharif Abubakar’s UBA account; ₦41,119,917.13 in Mustapha Sharif Abubakar’s Jaiz Bank account; ₦19,069,567.73 in Abubakar Mustapha Sharif’s First Bank account; ₦30,850,158.12 in Mustapha Sharif Abubakar’s Sterling Imal (Alternative Bank) account.

READ ALSO: Sterling Bank staff, fraudsters arraigned over N1.2bn cyber theft

The EFCC initially obtained an interim forfeiture order on March 12, 2025, and was directed by the court to publish the order in a national newspaper.

This publication, made in The Punch on March 24, 2025, invited any interested party to show cause why the money should not be permanently forfeited to the government.

Subsequently, a motion on notice dated January 8, 2025, was filed by EFCC counsel, Hannatu U. KofarNaisa, seeking final forfeiture of the funds on the grounds that the money was reasonably suspected to be proceeds of unlawful activities.

In granting the final forfeiture, Justice Dipeolu declared:

“Having gone through the motion and attachments, I find the application meritorious and the same is accordingly granted.”

This ruling represents a significant milestone in the EFCC’s ongoing efforts to combat cyber-enabled financial crimes in Nigeria’s banking sector.

This development echoes a similar incident in 2024, when a Federal High Court in Abuja granted an interim freezing order against multiple fintech firms, including FairMoney Microfinance Bank Ltd, PalmPay Ltd, and Opay Digital Services Ltd, after a system error at TAJ Bank Ltd resulted in the wrongful crediting of ₦139,630,000 to customers’ accounts.

In that case, filed under suit number FHC/ABJ/CS/1018/2024, the plaintiffs (TAJ Bank and six customers) sought recovery of the funds, prompting the court to issue an order mandating the reversal of the credited amounts.

Commenting on the growing frequency of system glitches and digital fraud in the financial sector, a financial consultant advised institutions to adopt safer banking habits, reinforce cybersecurity frameworks, and promote collaborative industry action to mitigate digital risks.

“Strengthening institutional security frameworks and enhancing stakeholder collaboration are vital for maintaining public trust and securing the digital banking environment,” the expert noted.