First Bank Fires Over 100 Employees Following $25 Million Fraud Scandal

First Bank dismissed more than 100 employees in July 2024, four months after discovering a $25 million fraud allegedly orchestrated by Tijani Muiz Adeyinka, a bank operations team manager.

Adeyinka is currently at large and is accused of using his authorization to approve fraudulent chargebacks to accounts under his control.

The dismissal affected at least 120 employees, including full-time and contract staff from the bank’s large operations department. The head of transactions was also terminated. The terminations were attributed to the employees’ failure to detect the fraud sooner.

First Bank’s management argued that it was inconceivable for such a significant fraud to occur over two years without the knowledge of Adeyinka’s supervisors.

“The CEO stated there will be zero tolerance for supervisory negligence,” said a First Bank employee who requested anonymity to speak candidly.

TechCabal first reported the fraud in May, revealing that Adeyinka, his team’s final authorization line, managed to execute his scheme unnoticed for two years.

Following the discovery of the fraud in March, the bank initially sought to manage the situation quietly by suspending several operations team members indefinitely. However, the situation escalated when the fraud became public.

In response to the scandal, the Nigerian Police Force (NPF) interrogated several employees, who were detained at the Lion’s Building for at least six hours before being released on bail.

Restrictions have been placed on their accounts, except their accounts at First Bank.

The scandal may have broader implications. Dr Adesola Adeduntan, First Bank’s CEO at the time of the fraud, resigned abruptly in April, eight months before his tenure was set to end and less than a month after the fraud was uncovered.

Adeduntan, who had led the bank for nine years, was initially replaced as CEO in April 2021.

However, the Central Bank blocked this move, citing a lack of regulatory approval, allowing Adeduntan to serve an unprecedented third term.

Concerns over his leadership and the fraud incident have been linked to his unexpected resignation.

First Bank did not immediately respond to requests for comment.