Court Orders Final Forfeiture of N1.29bn Stolen from Sterling Bank Over System Glitch

The Federal Excessive Court docket sitting in Ikoyi, Lagos, has ordered the ultimate forfeiture of the sum of N1,292,798,746.81, stolen by some people from Sterling {Bank} Plc because of a system glitch, to the Federal Authorities of Nigeria in favour of the {financial} establishment.

Justice D.I. Dipeolu handed the decision, in line with an announcement by the {Economic} and {Financial} Crimes Fee (EFCC) on Saturday.

The cash was stated to have been criminally withdrawn by some people owing to a system glitch skilled by Sterling {Bank} Plc.

EFCC Investigation and Prosecution 

• In line with the Fee, upon receipt of a petition from the {bank} alleging a N2.5bn theft, the investigation led to the identification and tracing of the stolen funds to varied accounts.

“The sums sought to be forfeited had been domiciled in M Sharif Inter-Buying and selling and Advertising and marketing Firm Ltd.’s UBA account (N900,000,000); Mustapha Abubakar’s UBA account (N255,872,842.84); Mustapha Sharif Abubakar’s UBA account (N12,195,093); Mustapha Sharif Abubakar’s Jaiz {Bank} (N41,119,917.13); Abubakar Mustapha Sharif’s First {Bank account} (N19,069,567.73); and Mustapha Sharif Abubakar’s Sterling Imal (the choice {bank account}) (N30,850,158.12),” the assertion partly reads. 

What Transpired in Court docket 

• The court docket had, on March 12, 2025, granted an interim forfeiture order of the funds and in addition directed the publication of the identical in a nationwide each day for any occasion to point out trigger why the cash shouldn’t be lastly forfeited to the Federal Authorities.
• A movement on discover dated January 8, 2025, and filed by the {Economic} and {Financial} Crimes Fee, EFCC, via its counsel, Hannatu U. KofarNaisa, was subsequently moved in court docket.
• Transferring the movement for the ultimate forfeiture order, the EFCC authorized staff informed the court docket that the cash was moderately suspected to be proceeds of illegal actions and deserved to be forfeited completely.
• The EFCC additionally knowledgeable the court docket that the Fee had printed the interim forfeiture order in The Punch newspaper of March 24, 2025, for any occasion to point out trigger why the ultimate order of forfeiture shouldn’t be made in favour of the Federal Authorities of Nigeria.
• Justice Dipeolu, after listening to the submissions by the EFCC, held that “having gone via the movement and attachments, I discover the applying meritorious and identical is accordingly granted.”
• Consequently, the decide ordered the ultimate forfeiture of the cash to the Federal Authorities of Nigeria in favour of Sterling {Bank} Plc.

Associated Growth 

A associated growth occurred in 2024 when a Federal Excessive Court docket, Abuja, granted an interim freezing order in opposition to a number of accounts in FairMoney Microfinance {Bank} Ltd, PalmPay Restricted, and Opay Digital Companies Restricted, mandating the organizations to reverse N139,630,000 credited to a few of their clients and account holders because of a “system glitch” at TAJ {Bank} Ltd.

The order was made following a movement ex parte filed by TAJ {Bank} Ltd and 6 of its clients on July 23, 2024, in swimsuit quantity FHC/ABJ/CS/1018/2024 in opposition to the three organizations.

The Nigerian Interbank Settlement System Plc was listed because the fourth respondent.

A marketing consultant advises that by adopting safer banking habits, strengthening institutional safety frameworks, and fostering stronger collaboration amongst stakeholders, {financial} establishments can decrease dangers whereas persevering with to take pleasure in the advantages of a safe and environment friendly digital {financial} system.