Sterling Bank is at the centre of a storm over allegations of $122 million fraud and money laundering, following a disputed loan arrangement with Miden Systems Limited, a Lagos-based oil and gas company.
The Nigeria Police, in a report dated January 14, 2025, accused the bank of financial impropriety, including fraudulent debits and misappropriation of funds, after investigating a petition forwarded to it by the House of Representatives Committee on Public Petitions.
The controversy stems from a $30 million loan Sterling Bank granted Miden Systems in 2012 to execute a contract with Shell Petroleum Development Company of Nigeria (SPDC).
According to the report, Miden Systems alleged that the bank mismanaged over $122 million paid by Shell into its accounts for project execution.
“It is apparent that Sterling Bank has not produced evidence to debunk the allegations of Miden Systems Limited,” the police report stated.
“Evidence corroborates alleged offences of financial mismanagement, fraudulent debits, misappropriation of funds, stealing and money laundering.”
The police found that the company operated four accounts—two in naira and two in dollars—with Sterling Bank. The proceeds from Shell were entirely domiciled in these accounts.
The report further revealed suspicious transactions, including a $1.2 million debit on August 29, 2016, without proper narration or destination.
Additionally, a series of large deductions labelled “AA Loan Repayment” and “AA Loan Payoff” totalling over $30 million were made from the company’s account between September 2016 and January 2017.
When questioned, the bank’s account officers reportedly failed to provide clear explanations for the debits.
“This is vague and ambiguous as it negates the principles of transparency and accountability,” the report stated.
Miden Systems also accused the bank of denying it access to statements of account and withholding information about the debits.
The situation prompted the House Committee to refer the matter to the Inspector-General of Police for investigation.
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