Zenith Bank Plc, its Lokoja Branch Manager Salawu Nairu, and two Chinese nationals, Liu Yangxi and Ma Zhuang, are currently under investigation for an alleged conspiracy to defraud BN Ceramic Industry Limited and NB Ceramic Limited of approximately N17 billion.
The scheme, reportedly carried out between November 2021 and August 2023, involved obtaining loans on behalf of the companies without the knowledge of their Nigerian directors and shareholders.
The conspirators are accused of forging signatures and submitting fraudulent documents to Zenith Bank in order to secure large sums of money.
Liu Yangxi, a director at both Ceramic firms, allegedly used the loan funds for personal gain, with the help of Salawu Nairu, who is said to have received over N100 million in kickbacks.
Initial investigations revealed that Liu, in collaboration with Ma and Salawu, fraudulently obtained a N3 billion loan by using company assets as collateral without proper authorization.
These funds were reportedly misappropriated and laundered, with significant portions being transferred to personal accounts in China.
Further investigation uncovered an additional N8 billion loan obtained under false pretenses, allegedly for a non-existent ethanol facility in Makurdi, Benue State.
Investigators also discovered that Liu, Ma, and Salawu falsified the signature of Zhang Aide, a director and shareholder of the Ceramic companies, on various loan documents and board resolutions.
The fraudulent activities extended to pledging all fixed and floating assets of BN Ceramic Industry Limited and NB Ceramic Limited as collateral without proper authorization.
The diverted loan funds were allegedly funneled into companies controlled by Liu, including Wetech Industry Ltd, Pure Biotech Company Limited, and CBC Oil & Gas Services Ltd.
On August 31, 2023, Liu secured an additional N8 billion loan from Zenith Bank through Wetech Industry Limited, again allegedly for financing an ethanol facility.
However, the funds were reportedly diverted to personal accounts without legitimate contracts.
Pure Biotech Company Limited, associated with Liu, is also under investigation for environmental violations, including discharging polluted water into the River Benue, and a fatal safety incident in April 2024.
Additionally, the company is being scrutinized for evading over N7 billion in taxes between 2022 and 2024.
The management of the defrauded Ceramic companies sought intervention from Zenith Bank’s Managing Director on February 2, 2024, requesting an investigation into the matter.
Petitions have since been filed with the Economic and Financial Crimes Commission (EFCC) and the State Security Service (SSS), calling for stringent regulatory action and raising concerns over potential systemic fraud within Nigeria’s banking sector.
The EFCC has confirmed that investigations are ongoing.
