N2.5bn Banking Glitch Scandal: Court Orders Forfeiture as Sterling Bank Fraud Exposes Massive Security Lapse, Billions Still Missing

A major fraud linked to a banking system glitch has exposed serious vulnerabilities in the digital payment infrastructure of Sterling Bank Plc, after a Federal High Court in Lagos ordered the forfeiture of part of the funds recovered from the scheme, with billions of naira still unaccounted for. 

The fraud, which investigators described as “monumental”, allegedly occurred after customers exploited a technical failure in the bank’s electronic payment system, siphoning more than N2.5 billion before the breach was detected.

So far, only about N571 million has been recovered, leaving a huge financial gap that highlights the scale of the loss suffered by the bank.

Justice Yelim Bogoro of the Federal High Court sitting in Ikoyi, Lagos, on Monday ordered the final forfeiture of N81,108,143.08 to the Federal Government in favour of the bank, following an application filed by the Economic and Financial Crimes Commission> (EFCC).

The forfeited sum forms part of the funds traced to the fraud, which investigators said was triggered by a system glitch that allowed customers to transfer money even when their accounts had insufficient funds.

According to court documents, the flaw enabled multiple unauthorised transfers into personal and third-party accounts before the bank could halt the transactions.

Investigators disclosed that the bank was unable to recover N295,916,201.02, as the money had already been withdrawn and converted by those involved before authorities intervened.

However, N81,108,143.08 was recovered from accounts linked to the scheme, while another N490,349,000 was retrieved from the bank’s internal ledger, bringing the total recovered amount to about N571 million.

An affidavit filed by EFCC investigator Maina Gapani Gyal revealed that the fraud was connected to the PayAttitude Global Ltd wallet platform subscribed to by the bank.

The glitch allegedly allowed customers to initiate transfers through the platform even when their accounts were not funded.

“Over N2.5 billion was stolen by some customers of the bank and converted to their personal use as well as to the use of third-party beneficiaries.

The fraud and unauthorised transfer of funds was due to a system glitch in the bank,” the investigator stated.

The EFCC identified Sulaiman Kehinde Ojora as one of the major beneficiaries of the illegal transfers.

He was accused of concealing N43 million in the account of his friend, Taiwo Oluwaseyi Alawode, domiciled with Access Bank Plc, while another N122.2 million was allegedly hidden in the account of his wife, Aminat Olatanwa Ojora, maintained with Sterling Bank.

Investigators said the transfers were designed to disguise the origin of the funds and frustrate recovery efforts.

The court had earlier granted an interim forfeiture order on 2 October 2025, directing that the notice be published in a national newspaper for any interested party to challenge it.

The notice was later published in The Punch on February 19, 2026, but no objections were filed.

Ruling on the EFCC application, Justice Bogoro held that the request was valid.

“Having gone through the motion and attachments, I find the application meritorious and the same is accordingly granted,” the judge ruled.

The court subsequently ordered that the N81,108,143.08 be permanently forfeited to the Federal Government in favour of Sterling Bank.

The case has raised fresh concerns over possible weaknesses in Nigeria’s fast-growing digital banking ecosystem, with financial crime experts warning that system failures combined with poor transaction controls could expose banks to massive fraud if not quickly detected.

Investigations into the wider fraud network are still ongoing.