Union {Bank} of Nigeria Plc led by Yetunde Oni, is at present grappling with an enormous N9.3 billion fraud following a major operational system breach, POLITICAL NEWS studies.
The event comes precisely one yr and three months after the Central {Bank} of Nigeria (CBN) sacked the {bank}’s board and full administration, citing governance failures. A brand new administration workforce was subsequently appointed to steer the {financial} establishment.
Union {Bank} is battling to recuperate the sum of N9,329,322,870.00 (9 billion, 300 and twenty-nine million, 300 and twenty-two thousand, eight hundred and seventy naira), withdrawn from prospects’ accounts with out authorization.
In a swimsuit marked FHC/L/CS/629/2025, filed earlier than the Federal Excessive Courtroom in Lagos, seen by POLITICAL NEWS, Union {Bank} sought a preservative order compelling the {financial} establishments concerned to put Submit No Debit restrictions on the accounts of all beneficiaries and to return the stolen funds traced to their establishments.
In response to the {bank}, the fraud adopted an operational failure and fraud in its core banking system on March 23, 2025, which led to unauthorized transfers from prospects’ accounts.
An affidavit deposed to by Oluwasegun Falola, head of the E-Fraud Investigations Division at Union {Bank}, said that the funds have been fraudulently and erroneously transferred from the {bank} to varied accounts throughout 53 {financial} establishments.
Falola defined that on March 23, 2025, the {bank} noticed that N9.3 billion had been debited from buyer accounts and dispersed into numerous accounts maintained by the respondent banks. He added that Union {Bank} instantly contacted the banks concerned in a bid to halt additional dissipation of the funds.
“The Fraud Desk Division of the {bank}, in the midst of its investigations, found that the monies have been transferred in trickles into a number of accounts domiciled with the first to 54th Respondents,” the affidavit said.
Union {Bank} attributed the unauthorized debits to a system glitch and exploitation, which it says enabled the illicit transfers.
“The funds have been erroneously and fraudulently transferred from prospects’ accounts.
“Upon additional investigation, it was discovered that the funds have been subsequently moved from these major beneficiary accounts to different accounts additionally held by the respondents.”
The {bank} disclosed that it had submitted the record of recipient accounts to the respective {financial} establishments as a preliminary measure to recuperate any remaining funds.
To assist its restoration efforts, the {bank} mentioned its inner audit and authorized departments compiled detailed studies tracing the move of funds and figuring out all beneficiary accounts.
When the case was talked about on April 2, 2025, Union {Bank}’s counsel, A. Adedoyin-Adeniyi, knowledgeable the courtroom that the stolen funds have been nonetheless being moved.
“₦9.3 billion has been moved from the account, and they’re nonetheless shifting funds. We now have extra individuals concerned in shifting the funds,” the lawyer instructed the courtroom.
In his ruling, Justice Deinde Dipeolu agreed with the submissions and thereafter granted a movement ex parte filed by the {bank} in regards to the unauthorized fund transfers.
“Having reviewed the movement ex parte, the appliance is hereby granted,” the decide dominated.
The incident has raised broader considerations in regards to the safety of Nigeria’s banking infrastructure, particularly as interbank transactions proceed to extend. {Financial} analysts recommend that outdated techniques and insufficient oversight could also be exacerbating vulnerabilities, heightening the danger of fraud and transactional errors.
Union {Bank} didn’t reply to POLITICAL NEWS’ inquiries as at press time.