Miden Systems sues Sterling Bank, CEO over alleged $200m fraud

Miden Systems Limited has instituted legal proceedings against Sterling Bank Limited, its Chief Executive Officer, Sterling Financial Holdings Company Plc, and four senior management staff, accusing them of conspiracy, fraud, forgery, criminal breach of trust, and misappropriation of funds.

The engineering, maritime, and consultancy firm, which maintains a corporate account with Sterling Bank, filed the case before Magistrate Njideka Duru of the Chief Magistrate’s Court in Wuse Zone II, Abuja.

The matter, which was scheduled for mention on Monday, August 25, 2025, could not proceed due to the ongoing Nigerian Bar Association (NBA) conference in Enugu and has been adjourned to September 10.

In a 29-page petition filed through its counsel, Louis Alozie (SAN), Miden accused the defendants of orchestrating a fraudulent scheme using its name to open multiple spurious accounts through which more than $200 million was allegedly siphoned.

The company claimed that Sterling Bank consistently ignored requests for account statements, unilaterally placed liens on its accounts, and withheld access to its funds.

It further alleged that the bank speculated with its foreign currency remittances for months before liquidating them at devalued exchange rates.

“In one instance, our principal remitted dollar revenues when the official rate was about N150/$1 and the market rate about N198/$1. Sterling Bank stockpiled over N2 billion in our account after taking its spread.

By the time they released it, the naira had collapsed to about N500/$1, rendering the original dollar value almost worthless,” the complaint read.

Miden also alleged that the bank deliberately denied its cheque books and internet banking access as part of efforts to conceal fraudulent transactions and unauthorised debit entries.

According to the company, despite fully clearing all outstanding loan obligations to Sterling Bank by July 2017, the bank allegedly “booked” an unsolicited $30 million loan into its account three months later.

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The petition claimed that the bank fabricated an offer letter, board resolutions, and forged signatures to create the appearance of a legitimate transaction.

The facility, Miden said, was approved and disbursed on the same day, with over $1 million transferred to an individual identified only as “AA” the following day, and another $29 million paid out two days later. “Miden never applied for this loan, never accepted it, and the signatures used were forged,” the complaint alleged.

The firm further cited another case in which Sterling Bank allegedly booked a $3 million loan to Chasewood Limited. When Chasewood denied ever applying for the facility, the bank allegedly reclassified the loan under Miden’s account, claiming both companies were “sister firms.” Miden has denied any corporate connection to Chasewood.

The company also claimed it uncovered documents suggesting that Sterling Bank had secured a facility from the African Export-Import Bank (Afrexim Bank) using forged signatures and identities unrelated to its directors.

In addition, Miden accused the bank of fraudulently opening additional accounts in its name using a fictitious office address at No. 10 Goba Close, Wuse II, Abuja—an address it insists it has no connection with.

Frustrated by failed attempts to resolve the dispute internally, Miden petitioned the House of Representatives Committee on Public Petitions.

Following its review, the committee referred the matter to the Inspector General of Police for investigation. A police report issued in February 2025 reportedly indicted Sterling Bank and the named defendants.