First bank sacks over 100 staff over N40bn fraud

• Published On: 05 August 2024 at 16:50

Tijani Muiz Adeyinka, a manager on First Bank's operations team, was accused of orchestrating a ₦40 billion scam, prompting the termination of over 100 staff.

The specifics of the plan, first revealed by TechCabal, show that Adeyinka, who is presently at large, used his position to authorise chargebacks to accounts under his control during a two-year period.

According to two sources with direct knowledge of the matter, at least 120 employees from First Bank's operations department, including both full-time and contract workers, got termination warnings in July.

Among those fired was the head of transactions. The sacked employees were accused of negligence, with bank management claiming that such a major and long-running fraud could not have occurred without the knowledge—or at least oversight—of Adeyinka's superiors.

"The CEO emphasised a zero-tolerance policy towards supervisory negligence," said a First Bank employee who asked for anonymity to talk freely.

Adeyinka, who had final authority on his crew, was able to carry out his fraudulent actions unnoticed for two years.

When the scam was discovered in March, the bank originally tried to handle it quietly, suspending some operations team members indefinitely. However, the strategy evolved after the scam became public knowledge, resulting in a more confrontational position from the bank.

According to sources, the Nigerian Police Force interrogated many employees and kept them at the Lion's Building for several hours. These employees were only released after posting bond, and their personal bank accounts have been restricted, with the exception of their First Bank accounts.

The scandal's consequences may have reached the bank's senior executives. Dr. Adesola Adeduntan, First Bank's CEO at the time, abruptly resigned in April 2024, eight months before his term was due to expire and less than a month after the fraud was discovered. Adeduntan, who had run the bank for nine years, formally stepped down to "pursue other interests."

His departure came after the board attempted to replace him in April 2021, but the Central Bank denied the appointment due to regulatory issues. According to some reports, his resignation in April was motivated by long-held reservations about his leadership.