First Bank, Nigeria’s oldest bank, was hit by a massive fraud incident that led to the theft of ₦7 billion from customer accounts by unknown persons, according to one person with direct knowledge of the matter. Three other persons who asked not to be named discussing sensitive company matters confirmed the incident.
The scope and complexity of the incident highlight the increasingly sophisticated nature of fraud in Nigeria’s financial services sector. Nigerian banks lost ₦43 billion to fraud in Q2 2024, yet those numbers are likely underreported. Only 60 of 163 financial institutions in Nigeria reported fraud cases, according to a Nigeria Inter-Bank Settlement System (NIBSS) report; many choose not to report incidents over fear of reputational harm.
The fraud incident at First Bank, which reportedly began several months ago, involved the unauthorised diversion of funds from several customer accounts. While the exact mechanism of the fraud remains unknown, three people with knowledge of the incident said the stolen funds were then moved to multiple bank accounts, including those of two fintech companies, a tactic fraudsters use to obscure the trail of illicit funds and make it difficult for law enforcement to trace and recover the money.
Despite the large amount involved, the fraud reportedly went undetected for months, suggesting significant internal control gaps. In May 2024, TechCabal reported that a First Bank employee had fraudulently diverted ₦40 billion over a two-year span before eventually being discovered. Two people with direct knowledge of the matter said the bank’s comprehensive audit showed that the total amount the employee diverted was around ₦60 billion.
That incident led to the dismissal of 100 employees and was thought to be connected to the abrupt exit of the bank’s CEO.
First Bank did not respond to a request for comments on this story.
According to two people with knowledge of the matter, First Bank has begun the recovery process and reported the case to law enforcement. Banks and fintech typically work with the police and courts to recover stolen funds. It remains unclear if First Bank has taken legal action over the matter.
