Sterling Bank has been accused of involvement in a $122 million fraud and money laundering scheme following a disputed loan agreement with Lagos-based oil and gas firm, Miden Systems Limited.
According to a police investigative report dated January 14, 2025, and obtained by Peoples Gazette on Tuesday, the controversy stems from a $30 million loan facility Sterling Bank granted to Miden Systems in 2012 for a contract with Shell Petroleum Development Company of Nigeria (SPDC).
The report alleges financial mismanagement, unauthorized debits, misappropriation of funds, stealing, and money laundering, stating that Sterling Bank has failed to provide adequate documentation to counter the claims made by Miden Systems. “Evidence corroborates the alleged offences… Sterling Bank has not produced evidence to debunk the allegations,” the report said.
The dispute began when Miden Systems accused the bank of mishandling over $122 million in proceeds paid by Shell for completed projects. The company subsequently petitioned the House of Representatives Committee on Public Petitions, which referred the case to the Inspector General of Police for investigation.
Police findings revealed that Miden Systems operated four accounts — two in naira and two in dollars — all domiciled with Sterling Bank. The report highlighted a series of questionable debits, including:
• $1.2 million withdrawn on August 29, 2016, with no known beneficiary.
• $2.4 million debited on September 27, 2016, for “AA Loan Repayment.”
• $1.25 million on November 14, 2016, under the same label.
• A staggering $28.3 million on January 16, 2017, for “AA Loan Payoff.”
When questioned, Sterling Bank officials, including account officers Dele Fasemo and Lekan Olakunle, reportedly gave vague explanations for the transactions, saying “AA Loan Repayment” was a generic term used during fund applications. The report criticized this explanation as lacking transparency and accountability.
Furthermore, police noted the bank failed to give Miden Systems full access to its account statements or records of the contested debits.
As the House of Representatives prepares to hold a public hearing on the matter, The Gazette learned that Sterling Bank sought an ex parte court injunction to stop the hearing, a move believed to be aimed at avoiding public scrutiny.
Innocent Usoro, representing Miden Systems, alleged that the bank misled the court to secure the injunction, accusing it of presenting falsified information related to the petition.
Sterling Bank’s head of corporate communications declined to respond to calls seeking comment.
The police report recommended forwarding the findings to the House Committee on Public Petitions for further legislative action. A court hearing on the matter has been scheduled for Wednesday.
