Customers of Sterling Bank have raised serious complaints over what they describe as “poor services, fraudulent deductions, harsh treatment, service delays, and misrepresentation of facts” by the bank's officials. In recent years, Sterling Bank, a holding company (Holdco), has faced legal actions and police investigations over alleged unauthorized or fraudulent deductions, including notable cases brought by individual employees and corporate clients.
Police Indict Sterling Bank Over Alleged Money Laundering
In one instance, the Nigeria Police Force indicted the bank and several executives over alleged money laundering and fraudulent deductions totaling millions of dollars, following petitions by corporate customers like Miden Systems Ltd. Plaintiffs alleged unauthorized loan bookings, forged signatures, and blocked accounts. Also, some workers have sued the bank at the High Court and National Industrial Court over unsolicited salary loans that resulted in continuous, involuntary deductions from employee allowances and accounts.
In these legal proceedings, Sterling Bank’s legal teams have filed defense amendments, contesting the validity of the claims or asserting compliance with internal loan processing and credit recovery protocols. Sterling Bank prides itself as the “One-customer bank.” However, today, several customers complain about what they describe as the bank’s “persistent deceit, illegal deductions from their accounts and misrepresentation of facts,” giving a plethora of instances to back up their claims, even as the bank has denied the allegations, stating that it did no wrong.
Customers Cry Out Over Hidden Charges and Delays
Speaking to our correspondent in Abuja at the weekend, a corporate account holder, Mrs. Obiageri Obiefule, stated that for a long time, customers have been at the mercy of the bank, which she claimed regularly debits them for all manner of reasons, some of which she said were questionable and dubious, including hidden charges. According to her, “these charges amount to loss of millions of Naira to us, the bank customers to the effect that Sterling Bank declare trillions yearly as profit at the detriment of its customers who lacked the voice to complain. Even the regulatory agencies seem to be helpless in this situation as they have failed to address our several complaints,” she alleged.
Another customer, Marvelous Okoro, accused the bank of refusing to release her bank statement four months after she applied for it. She alleged that she had been witnessing withdrawal alerts on her account and had applied for a statement to verify the transactions but expressed concern over the bank’s refusal. She said her fear was based on complaints by two friends who she alleged had similar experiences with the bank, yet the deducted amounts have not been refunded. “The trend of fraudulent activities including unwarranted deductions is becoming alarming and portrays the bank in bad light. Please help me appeal to them to release my bank statement to enable me verify my bank transaction details,” she pleaded.
CSO Protests at CBN Headquarters Over Sterling Bank Practices
Observers have expressed concern over several allegations of fraudulent practices leveled against Sterling Bank. On 8th October 2025, a group called the Coalition of Civil Society Organizations Against Banks Fraudulent Practices and Customers Victimization (CCSOABFFPCV) staged a peaceful protest at the Abuja headquarters of the Central Bank of Nigeria (CBN) and in front of Sterling Bank’s Abuja regional office. At the apex bank’s office, the group submitted a petition received by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN. The petition, dated Monday 6th October 2025, was addressed to Mr. Olayemi Cardoso, Governor of the CBN.
The protesters displayed placards with inscriptions like “conspiracy; forgery; criminal breach of trust; taking loan is not a crime; stop suffocating your customers; theft; make loan repayment transparent.” Comrade Flora Elekwa, Director of Mobilization and Advocacy of the CSO, told officials of the CBN and the media that the trend of fraudulent activities occasioned by unwarranted deductions was becoming alarming and portrayed Sterling Bank in a bad light. The petition was signed by Comrade (Dr.) Sam Wisdom, National Coordinator; Comrade Flora Elekwa, Director of Mobilization and Advocacy; and Lady Cecilia Bisong, National Organizing Secretary.
“The street protest and advocacy match are aimed at drawing the attention of the government, regulatory authorities, and the general public to these unwholesome, illegal practices with a view to rectifying the situation,” Mrs. Elekwa said. The group faulted the manner Sterling Bank treats its customers and pleaded with the CBN to immediately ask the bank’s management to have a change of heart.
Miden Systems Alleges $200 Million Fraud
The group specifically mentioned the case of Miden Systems Ltd, said to be a major customer of the bank, which allegedly lost over Two Hundred Million Dollars in its account to illegal deductions by officials of Sterling Bank. Miden Systems Limited had petitioned the CBN, the House of Representatives, and the Inspector-General of Police, alleging that the bank, through its Chief Executive Officer and Sterling Bank’s Financial Holdings Company Plc, used its name to open various spurious accounts through which it allegedly siphoned the company’s funds domiciled with the bank, up to the tune of over $200,000,000 (Two Hundred Million Dollars). The company accused the bank of fraudulent accounting, mismanagement of contract proceeds, money laundering, unauthorized fund transfers, opening of fake bank accounts without authorization, and forgery of bank documents.
“Funds were moved and misappropriated by the bank at reckless abandon with huge and massive spurious debits to the company’s account,” the company alleged. The company also stated that it continuously demanded its statement of account, which Sterling Bank refused to release.
In June 2012, Miden Systems Ltd, an indigenous oil service firm, entered into a Term Loan/Vessel Finance Facility Agreement with Sterling Bank to finance the acquisition of six Light Marine Vessels for a contract with SPDC. Under the agreement, the company contributed $7.3 million (30%) of the vessel cost, while the bank provided $17,079,000.00 (70%) as a loan via Letters of Credit for the purchase of vessels in Malaysia and Singapore. The repayment plan was structured so that 70% of all contract proceeds from Shell Petroleum Development Company would be transferred to a Debt Servicing Repayment Account (DSRA) domiciled with Sterling Bank, while 30% would be reserved for the company’s operational needs. The loan tenor was 60 months with a 6-month moratorium, billed to terminate by September 2017.
Police Report Uncovers Grave Banking Malpractices
A Police Investigative Report dated 14 January 2025 uncovered serious banking malpractices by Sterling Bank between 2016 and 2024 regarding the loan transaction. According to the report, the bank misappropriated contract proceeds without rendering proper account statements to the customer. Several unauthorized payments were made from the customer’s account to unknown persons. “Despite multiple formal requests by the customer, Sterling Bank refused to provide account statements thereby concealing transaction records and falsifying book entries. In addition, the bank failed to disclose the status of the loan liquidation process thereby creating financial opacity,” the Police report stated.
The police also discovered the creation of multiple fake accounts by the bank, including an unusual 20-digit account in the name of the company without authorization. The report noted that “the Bank unlawfully consolidated the Customer Company’s account with the account of a different and distinct company, Chasewood Nigeria Limited, in order to fraudulently impose dubious and illegal debt obligations on the Company.” Sterling Bank also deliberately denied the customer access to its 30% share of proceeds, crippling the company’s operations.
Between 2016 and 2024, Sterling Bank allegedly received more than $57 million in contract payments from SPDC and yet falsely claimed the company owes an additional $30 million. The bank received a total credit of USD122,768,041.69 in the domiciled account without rendering a proper account of the application and sources of funds, contrary to CBN Rules & Regulations.
Bank Falsified Loan Documents, Says Police
The police report stated that although Sterling Bank claimed a $30 million loan was applied for, approved, and disbursed in one day on 13th January 2017, the loan application did not emanate from the company. The bank was accused of forging the company’s lodgment of loan application and related documents, including account officer/branch review, credit committee approvals, and customer’s board meeting resolutions. “They purportedly fulfilled all terms and conditions for loan disbursement under one day and diverted the funds to private accounts operated by top officials of the bank,” the Police said.
The report indicates high-level criminal conspiracy at the top management level to defraud the customer and conceal evidence. The bank unlawfully disbursed and failed to account for USD122,768,041.69 credited to the company’s account between 03/05/2016 and 19/07/2024. It also failed to apply remittances of USD57,301,865.56 and NGN6,972,548,982.39 by SPDC between 2013 and 2020 towards reducing alleged debts, channeling the funds to unknown beneficiaries. The police report also stated that “the bank falsified book entries on 13 January 2017 by pretending to credit the Company’s account with $30 Million US dollars when in fact there was no outstanding debt on the account.” On 16th September 2017, the bank fraudulently transferred USD28,302,140.59 under an unlawful scheme titled AA Loan Repayment, with other fraudulent transactions on 6th May 2016 and 27th August 2016.
Legal Battles and Denials
Following the police findings, the matter was escalated to the House of Representatives Committee on Public Petitions, where the Nigeria Police Force submitted a report indicting Sterling Bank for alleged money laundering and mishandling of Miden Systems’ accounts. To avoid further investigations, the bank approached the Federal High Court in Lagos on 5th February 2025 to seek a restraining order on the House of Representatives from further probe of Sterling Bank Limited and the Group Chief Executive Officer of Sterling Financial Holdings Company, Yemi Odubiyi. At the resumed hearing on April 30th 2025, the court could not hear the matter and went on a prolonged adjournment.
Section 37(3) of the Cybercrimes (Prohibition and Prevention) Act 2015 explicitly criminalizes unauthorized debits by financial institutions. Those familiar with the case said Sterling Bank’s actions violate this provision and Sections 18, 20, 24(1), and 25 of the BOFIA, which prohibit fraudulent banking practices. Legal experts and the Citizens Network for Consumer Rights described the revelations as a financial heist and called for a thorough and impartial investigation with a view to possible criminal prosecution of those found culpable. The bank has consistently denied all fraudulent claims, describing the publications and protests as illegal attempts to disrupt its business operations.
Observers have wondered why the bank, rather than amicably settling the matter, resorted to calling the Chief Executive of Miden Systems, Dr. Brenda Usoro, unprintable names in a frantic bid to blackmail him. Chief James Ogene, a former Federal lawmaker and Abuja-based industrialist, said, “Tell me, how can a man who brought million Dollar business to a bank but was robbed of his hard-earned money by the bank officials, be called by the same bank as a chronic debtor? That is laughable. I can only compare it to the proverbial case of the pot calling the kettle black.” He added, “I have known Dr Usoro for the past 25 years and during this period we have done a number of businesses. He is trust worthy, honest, very reliable and sincere to a fault. If he tells you something, that is the way it is. Therefore, for someone to call him names in order to blackmail and tarnish his image, that person needs to examine himself or herself. I know the bank did that out of vengeance.”
Other Allegations: Strange Accounts and Delayed Remittances
In August 2025, lawyers representing Olalekan Adejumo (not real name), a Lagos State resident, wrote to Sterling Bank demanding an investigation and immediate closure of a strange account opened in their client’s name. “My lawyers sent a letter to Sterling Bank yesterday, demanding an immediate closure of the strange account,” said Adejumo. “You won’t believe that as we speak, the account is still very much active. It has not been closed by the bank.” The lawyers requested a comprehensive report revealing the identity of the bank staff responsible for opening the account and how account opening protocols, including Know Your Customer (KYC), Bank Verification Number (BVN) validation, and National Identification Number (NIN) linkage, were bypassed. They also demanded the unmasking of Legbeti Anuoluwapo, who carried out a N5,000 transaction on the account, and an apology letter from Sterling Bank.
Another allegation involves a foreign-based Nigerian student who in 2022 almost lost her university admission with the threat of deportation after Sterling Bank delayed processing her tuition remittance. She initiated a CBN Form ‘A’ transaction through Sterling Bank on August 10, 2022, to pay her school fees abroad. Nearly three months passed without the bank remitting the funds. In a Twitter thread shared @DasilvaOlamide, she wrote: “I’m at the verge of losing my admission and getting a deportation because of Sterling Bank. I initiated my Form A since 10th August. I have sent them several emails showing them that my school requires the payment or I will be deported, my deadline is tomorrow. HELP! Sterling bank has still not done anything, please help me keep retweeting and tagging. Today is the deadline or I will be deported. It’s not fair that I have paid since August 10th and the money hasn’t been remitted to my school.”
In November 2017, Grant Properties Ltd accused Sterling Bank of illegally selling its collateral for an N8 billion loan. According to the company, Sterling Bank excised 10 hectares of its land valued at N5 billion from a 50-hectare collateral and illegally sold it to a front company belonging to a senior director of the bank. Delivering judgment, a Lagos high court ruled that the collateral was illegally sold and ordered the bank to return the property. The business deal started in 2002 when Grant Properties secured a 50-hectare land in Lekki, Lagos, to build “Victory Park Estate.” Olajide Awosedo, chairman of Grant Properties, said a non-executive director of Sterling Bank had called him and asked him to sell the land, but he refused. “They moved my loan to AMCON, but rather than transfer all my collateral with the loan, the bank (Sterling) withheld the 10 hectares its director had his eyes on and sold it to him through a surrogate company owned by the director and his associates,” Awosedo added. He alleged that the director initially sold the land to his front company at N18,500/sq metre, amounting to N1.85b for the 10 hectares, a far cry from the market worth of N5 billion. About 2.4 hectares from the land was immediate.
