In July 2024, First Bank of Nigeria terminated over 100 employees, following the revelation of a significant fraud perpetrated by Tijani Muiz Adeyinka, a manager in the bank’s operations team. Adeyinka, who remains at large, allegedly diverted ₦40 billion over a two-year period by approving chargebacks to accounts under his control. The discovery of this fraud led to a major overhaul within the bank’s operations department .
Employee Terminations and Management Response
According to sources with direct knowledge of the situation, around 120 employees, including full-time and contract staff, received termination letters in July. The head of transactions at the time was also dismissed. The dismissed employees were accused of failing to detect the fraud earlier, leading to suspicions that the scale and duration of the fraud could not have been possible without the complicity or negligence of Adeyinka’s superiors.
An anonymous First Bank employee mentioned that the CEO emphasized a “zero tolerance for supervisory negligence,” underscoring the bank’s stringent stance on oversight failures .
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Discovery and Initial Reaction
TechCabal first reported the fraud in May 2024, revealing how Adeyinka, who had the final authorization on his team, managed to execute his scheme unnoticed for two years. Upon discovering the fraud in March 2024, First Bank attempted to keep the matter confidential, suspending several operations team members indefinitely. However, once the fraud became public, the bank adopted a more aggressive approach, leading to the mass layoffs .
Legal and Financial Implications
Several employees were detained by the Nigerian Police Force (NPF) and questioned about the incident. They were held at the Lion’s Building for at least six hours and required to post bail for their release. Furthermore, restrictions were placed on their personal accounts, with the exception of their First Bank accounts .
Leadership Changes and Broader Impact
The fallout from the fraud also extended to the bank’s leadership. Dr. Adesola Adeduntan, the CEO at the time, resigned in April 2024, eight months before the end of his tenure, and less than a month after the fraud was uncovered. Dr. Adeduntan, who had been with First Bank for nine years, cited the pursuit of other interests as his reason for leaving. His resignation came after a contentious tenure that included a regulatory dispute with the Central Bank of Nigeria over his reappointment for a third term in 2021 .
Conclusion
The fraud incident at First Bank highlights significant lapses in internal controls and oversight within the bank’s operations. The mass layoffs and resignation of the CEO underscore the serious ramifications of such a large-scale fraud. Moving forward, it will be crucial for First Bank to strengthen its internal controls and supervisory mechanisms to prevent similar incidents and restore stakeholder confidence.
This detailed account of the First Bank fraud scandal provides a comprehensive understanding of the events and their implications. For further details, refer to the initial report by TechCabal and related sources.
