E-Financial
Forensic Firm, CBN, First Bank Clash Over Fraudulent Charge Allegations in $54.2m Facility
Lensview Consulting Services, a Lagos-based forensic and auditing firm, has alleged bias, open fraud, deliberate cover-up and impersonation of persons by the Central Bank of Nigeria (CBN) in the handling of fraudulent transaction charge refund by Nigerian money deposit banks with First Bank of Nigeria Plc (FBN) as a case in point, according to Quick News Africa report.
Mr. Henry Foss, Managing Consultant of Lensview whose client is a victim of the fraudulent charge, made the disclosure recently.
Lensview had in 2022 approached the CBN on behalf of its clients to compel FBN to refund the sum of $227,235.34, being 0.5% of $554,570.68 as the agreed Bank Guarantee Fee on a $54.2m facility its client requested from FBN. Rather than adhere to the agreed 0.5%, FBN charged Lensview’s client 1% which translated to $554,570.68, and hence the fraudulent excess charge of $227,235.34. “When FBN refused to refund the excess at the agreed rate, based on a long standing offered rate at 0.5%, Lensview had to petition the CBN on the matter and the CBN carefully reviewed the merit of the petition after which it asked FBN to refund the excess amount to the customer with accrued interest as a standing rule,” Foss said.
Instead of honouring CBN’s decision to credit the customer’s account, FBN turned around for several months to find a way to avert the decision by coming up with copy of an email chat purportedly between an FBN employee and the customer’s representative claiming that the Guarantee Fee had been increased from 0.5% to 2%, as an offer condition, which FBN claimed to have been accepted by the customer’s representative. But this unauthorised customer’s representative apparently lacked the capacity to accept such a decision on behalf of the principal nor had the customer’s mandate powers to instruct or authorise payment or drawings on the principal’s account without confirmation and necessary due diligence from the company that officially requested for the facility, with significantly, a minimum of two authorised signatures on its letterhead document for such approvals and payments.
On January 20, 2023, Lensview also wrote to the Governor of the Apex Bank, as a follow-up to the issue of fraudulent perversion, impersonation and miscarriage of Justice by the Consumer Protection Department (CPD), an arm of the CBN in a petition titled, “Reasonable Suspicion, Likelihood of Bias and Cover up By the Director of the CPD in the Appeal of Judgment between Lensview Consulting Services and the CPD with Petition Tracking Number CIM74368/AST involving First Bank Plc,” alleging that there was impersonation of its person, fraudulent neglect and non-compliance on the part of officers of the apex bank.
According to Foss, the transaction was a significantly heavy one such that FBN cannot claim lack of awareness of the fact that for any change of transaction fees to be effective, it must first be communicated to the customer with a letter with evidence of acknowledgement as a proof that the customer is aware of the change.
The forensic and audit firm also noted that FBN was aware that the said customer’s representative does not have the powers or mandate to authorise such transactions, and where he may, as a signatory with mandate powers, it will require at least two authorised signatures over the company’s letter of acceptance on their Letterhead document and not via a chat on phone between two mutual friends.
“Given the facts of the matter vis a vis the practice of banking in Nigeria, it is surprising that the CBN after its earlier verdict that refunds be credited to client, made a sudden u-turn in favour of FBN justifying the fraudulent e-mail received from customer’s staff to conclude that the e-mail suffices as an authority for FBN to take the charge based on instructions from customer’s staff without confirmation from customer’s authorised signatories,” Foss explained, questioning that if the e-mail content sufficed, why did FBN charge 1% instead 2% Guarantee Fee it stated on the email and who negotiated it from 2% to 1%? “Where is the copy of the letter from customer acknowledging the new rate which could have been negotiated or rejected if customer saw it?” Foss asks.
“More worrisome is the CBN’s lack of explanations as to why the email chat between these mutual friends on behalf of their organisations sufficed as an authority to move such a huge amount from the customer’s very busy account in the books of FBN,” Foss notes.
The CBN, in a bid to cover up this fraud, as Lensview pressed harder, in their letter dated 9/1/2023 to Lensview Consulting solicitors wrote that one Mr. Polycarp representing Lensview Consulting Services was invited in an interdepartmental meeting with representatives of the CBN in August 2022, where the said impersonator, Mr. Polycarp, affirmed and upheld the unanimous decisions with the CBN with respect to the fraudulent e-mail from FBN, as correct and sufficient to close the matter.
“This engagement of one purported Mr. Polycarp to stand in for Lensview Consulting Services in the said August 2022 meeting is another fraudulent move by the CBN to cover for FBN on the open e-mail fraud,” Foss said, adding that the CBN, in one of their recent letters to Lensview Consulting, wrote to say they have closed the matter based on the affirmation of the impostor consultant they hired to kill the matter.”
But Foss said that the CBN soon realised that it had erred by engaging an impostor consultant to stand in for Lensview in the said August 2022 meeting, and they quickly wrote back with efforts in futility to invalidate their letter dated 5/1/2023 where Mr. Polycarp the impostor was referred to.
For Lensview, this is a public call for the CBN and it’s co- traveller, FBN to do the right thing and credit the customer the excess charges it fraudulently deducted from the customer.
SOURCE: Quick News Africa
Nigeria’s banking sector is losing an estimated N2.5 trillion in annual earnings due to the Central Bank of Nigeria’s high Cash Reserve Ratio (CRR) policy, according to a new report by Chapel Hill Denham.
The investment banking and research firm said the policy continues to impose significant constraints on bank profitability by requiring lenders to keep a large portion of customer deposits with the Central Bank without earning returns on them, effectively locking away funds that could otherwise support lending and income generation.
In its report titled “The Nigerian Banking Paradox: High Returns, Deep Discounts,” Chapel Hill Denham noted that although Nigerian banks rank among the highest return-on-equity performers in Africa, they remain undervalued compared to peers, largely due to regulatory constraints and macroeconomic uncertainty.
The firm identified the CRR regime as a key structural factor limiting the sector’s earnings potential, arguing that it reduces balance sheet efficiency and restricts credit creation to the real economy.
According to the report, banks are still required to pay interest on deposits while a significant portion of those funds remains sterilised at the apex bank.
Chapel Hill Denham stated that the current policy framework, which evolved in response to past financial sector instability and exchange rate pressures, may now be exerting a heavier drag on growth and profitability than originally intended.
“Our analysis reveals that Nigerian banks operate under a uniquely restrictive regulatory perimeter,” the report said, adding that the structure suppresses reported returns despite underlying profitability strength.
The report also compared Nigeria’s reserve requirements with other jurisdictions, noting that the country’s CRR remains significantly higher than several African and emerging markets.
While South Africa operates a 2.5 per cent CRR, Kenya maintains 4.25 per cent, Ghana 15 per cent, and Egypt 16 per cent, with Morocco reported to have reduced its reserve ratio to zero.
Analysts at the firm said a moderation of Nigeria’s CRR from 50 per cent to 30 per cent could release up to N8 trillion into the banking system and potentially boost annual pre-tax profits by about N800 billion.
They added that investors currently price Nigerian banks on the assumption that the tight monetary stance will persist, limiting valuation upside despite strong earnings performance.
At its February 2026 meeting, the Monetary Policy Committee of the Central Bank of Nigeria retained the CRR for Deposit Money Banks at 45 per cent, while Merchant Banks remained at 16 per cent, and public sector deposits outside the Treasury Single Account framework at 75 per cent, as part of efforts to sustain tight monetary conditions and manage liquidity pressures.
Lagos State Government has sanctioned 15 money lending firms over violations of operational guidelines and practices considered harmful to residents.
Ibrahim Layode, commissioner for Home Affairs, disclosed this during the 2026 Ministerial Press Briefing held in Ikeja.
Layode said the affected firms were penalised for engaging in sharp practices contrary to regulations guiding money lending operations in the state.
According to him, the government remains committed to enforcing strict compliance within the sector to curb fraudulent financial activities and protect Lagos residents from exploitation.
“The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” he said.
The commissioner described money lending as an important part of the economy, noting that it provides quick and accessible credit facilities to petty traders and small-scale business owners who often face difficulties obtaining loans from commercial banks due to stringent requirements.
“Moneylending business is one of the vital parts of the economy which allows people in the small-scale industry and petty traders to have stress-free access to quick loans to finance their businesses,” Layode said.
He explained that the Ministry of Home Affairs is responsible for processing applications, issuing and renewing licences for money lenders, as well as monitoring and supervising their operations across the state.
Layode added that the ministry regularly organises stakeholders’ forums to expose operators to global best practices and improve professionalism within the industry.
“We also conduct stakeholders’ forums for moneylender operators in order to bring them up to speed on the latest world best practices,” he said.
The commissioner further disclosed that the ministry collaborates with federal regulatory agencies, including the Federal Competition and Consumer Protection Commission (FCCPC) and the Special Control Unit Against Money Laundering (SCUML), to ensure compliance with financial and consumer protection regulations.
According to him, the ministry also profiles and monitors money lending firms to protect residents from fraudulent operators and dubious schemes.
“In addition, the Ministry registers, profiles and monitors the viability of such companies with a view to ensuring that while the money lenders are in business, the general public is also protected from being scammed by fraudulent people of questionable characters,” Layode said.
He noted that licensed money lenders have contributed significantly to the growth of micro and small businesses in Lagos by providing alternative sources of financing outside the conventional banking system.
“This partnership has greatly assisted small-scale business owners in Lagos to keep their petty businesses afloat without having to contend with high interest rates and clauses of the big commercial banks,” he added.
Layode revealed that between 2025 and 2026, the ministry received 112 new applications from money lending operators, while 214 existing licences were renewed.
On naturalisation and special immigrant status applications, the commissioner said the ministry, in collaboration with the Federal Ministry of Interior, continued to process applications from foreign nationals seeking Nigerian citizenship or permanent residency.
He explained that naturalisation is granted to foreigners who have resided continuously in Nigeria for at least 15 years and have established investment interests in their states of residence.
“The objective of the exercise is to grant citizenship rights to foreigners who have lived in the country continuously for fifteen years and above with investment interests in their states of residence,” he said.
Layode added that special immigrant status is granted to foreign nationals married to Nigerian citizens to promote integration and economic development.
According to him, applicants undergo screening and verification processes involving the Nigerian Immigration Service, Department of State Services, Nigeria Police, Lagos State Ministry of Justice and the Lagos State Internal Revenue Service.
He disclosed that 68 applications for naturalisation and special immigrant status were received during the period under review, while 20 applicants were screened and cross-examined for onward transmission to the Federal Ministry of Interior for final approval.
First Bank of Nigeria Limited, in partnership with Visa, has launched its multicurrency Visa Signature card, a premium offering designed for Nigeria’s affluent segment, as well as the Naira Visa Debit Card aimed at extending accessible, reliable electronic payment capabilities to a broader segment of the Nigerian population.
According to First Bank, the Signature card offers an exclusive portfolio of lifestyle benefits, global travel privileges, and curated merchant offers through Visa’s worldwide acceptance network, giving high-spending Nigerians a product built around how they live.
Commenting on FirstBank’s ambition for its premium cardholders, Chuma Ezirim, group executive, eBusiness & Retail Products, FirstBank, said Visa Signature is crafted to meet those expectations and lifestyle privileges that empower customers to live without boundaries.
“At FirstBank, we are dedicated to creating financial solutions that reflect the evolving lifestyles of our customers. We understand that our premium customers aspire to experiences that reflect their global outlook.
“Visa Signature is crafted to meet those expectations, offering access to exclusive experiences, global connectivity, and lifestyle privileges that empower our customers to live without boundaries. We remain focused on creating value and reinforcing our position as the partner of first choice for Nigerians at home and abroad.”
Highlighting the strategic importance of the FirstBank partnership, Andrew Uaboi, vice president and Cluster head, West Africa, Visa, noted “Nigeria’s affluent consumers are among the most active and globally connected spenders on the continent. Visa Signature is designed to serve that profile with the depth of benefits and the breadth of acceptance they deserve. We are delighted to work with FirstBank in making this available to the Nigerian market.”
Ezirim explained that through Visa Global benefits and Visa Destination offers, the Signature cardholders gain access to preferential rates, premium experiences, and priority services across hundreds of partner merchants, hotels, airlines, and destinations around the world. The card which is multicurrency in nature supports both domestic and cross-border transactions, ensuring seamless payment experiences.
Also speaking on the launch of the Naira Visa Debit Card, Ezirim said the card is “designed to make life easier for our customers, whether they are paying for groceries, settling utility bills, or shopping online. By extending reliable electronic payment access across Nigeria, we are helping more people transition confidently from cash to digital payments, supporting the nation’s cashless policy and empowering communities with greater financial inclusion.”
On his part, Uaboi, noted that “a strong payments ecosystem works for everyone. The Naira Visa Debit Card extends reliable electronic payment access to everyday Nigerian consumers, and this in addition to the cards in our portfolio continues to demonstrate what a truly comprehensive card portfolio looks like for the Nigerian market. Visa is proud to power this offering with FirstBank.”
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