First Bank sacks over 100 staffs after N40 Billion fraud case

First Bank has reportedly terminated the employment of more than 100 staff members following the discovery of a ₦40 billion fraud allegedly orchestrated by Tijani Muiz Adeyinka, a manager on the bank’s operations team. The fraud, which occurred over two years, was uncovered four months ago.

According to a report by TechCabal, Adeyinka, who remains at large, allegedly exploited his position to approve unauthorized chargebacks to accounts under his control. Sources familiar with the situation revealed that at least 120 employees, including full-time and contract staff from First Bank’s operations department, received termination letters in July.

The bank also dismissed the head of transactions, holding them accountable for failing to detect the fraudulent activities sooner. First Bank’s management suspects that such a large-scale fraud could not have been executed without some level of oversight or knowledge from Adeyinka’s superiors. This has led to increased scrutiny of internal processes and accountability within the organization.

“The CEO said there will be zero tolerance for supervisory negligence,” said one First Bank employee who asked not to be named so they could speak freely.

It was reported that the alleged fraud in May, showing how Adeyinka, who was the final line of authorisation on his team, carried on his scheme unnoticed for two years. When the incident was discovered in March, the bank tried to keep the matter under wraps, suspending several operations team members indefinitely. However, First Bank became more aggressive after the fraud became public.

Several employees were questioned by the Nigerian Police Force (NPF) and detained at the Lion’s Building for at least six hours, one person with direct knowledge of the incident said. Those employees needed to post bail before they were released. Restrictions have been placed on all their personal accounts except their First Bank accounts.

First Bank did not immediately respond to a media request for comments.

The blast radius may have extended farther. First Bank’s CEO at the time, Dr Adesola Adeduntan, abruptly resigned in April, eight months before the end of his tenure and less than a month after the fraud was uncovered. Adeduntan, who led First Bank for nine years and “left to pursue other interests,” was initially replaced as CEO by First Bank’s board in April 2021.

The Central Bank blocked that move, claiming First Bank’s board acted without regulatory approval. It paved the way for Dr Adeduntan to serve an unprecedented third term. One publication claimed concerns over his tenure led to his resignation in April.