FB in Turmoil Over N44bn Fraud, Seeks Police Assistance

June 3, 2024

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First Bank in Turmoil Over N44bn Fraud, Seeks Police Assistance.

First Bank, Nigeria’s oldest financial institution, faces a massive N44 billion fraud scandal leading to the resignation of its CEO and significant leadership changes.

Key Points:

CEO Resignation:
- Former CEO Adesola Adeduntan abruptly resigned in April 2024, citing a decision to retire while attending the World Bank/IMF meetings in Washington.
New Leadership:
- Olusegun Alebiosu, previously the executive director and chief risk officer, has been appointed as the new CEO to enhance controls and risk management.
Fraud Discovery:
- A staff member at a Lagos branch allegedly diverted N44 billion over two years, undetected until recently.
- The fraud involved transferring funds to personal accounts and multiple beneficiaries, leading to widespread financial irregularities.
Social Media Reactions:
- The news has sparked significant discussion online, with experts and the public questioning the bank’s internal controls and audit processes.
- Calls for better fraud detection and risk management systems have been amplified.
Police Involvement:
- First Bank has sought assistance from the Lagos State Police Commissioner to investigate and apprehend those involved in the fraud.
Operational Impact:
- The fraud has raised concerns about the effectiveness of the bank’s automated systems and supervisory measures, with many questioning how such large-scale theft went unnoticed.