Sterling Bank Limited and its holding company, Sterling Financial Holdings Company, are embroiled in a scandal involving the theft of ₦1.2 billion from depositors’ accounts.

The funds were reportedly stolen by a network of fraudsters in collusion with some bank staff, leading to a high-profile court case.

The suspects, identified as Victor Nwabueze (50), Favour Odey (22), Adekunle Daniel (34), and Yetunde Oguntade (28), along with an accomplice, Akachukwu Alagbogu, were arraigned before Justice Ambrose Lewis-Alagoa at the Federal High Court in Lagos.

Justine Enang, prosecutor, revealed that the fraud occurred between November 3 and 4, 2024, when the suspects allegedly breached Sterling Bank’s sensitive systems.

Using compromised data such as IP addresses and mobile equipment identities, they transferred ₦1,257,536,572.50 into fraudulent accounts.

The suspects faced a three-count charge of conspiracy, hacking, and money laundering under the Cybercrimes Act and the Money Laundering Prohibition Act.

The charge sheet detailed the fraudulent acts, highlighting that the defendants, in collaboration with internal staff, exploited the bank’s platform to steal depositors’ funds. It stated:

Conspiracy and Internet Fraud: The defendants conspired to commit internet fraud by falsely manipulating banking systems, causing financial losses to Sterling Bank and its customers.

Unauthorized System Breach: They knowingly accessed and suppressed parts of the bank’s systems, transferring funds to fraudulent accounts.

Money Laundering: The stolen funds were converted, transferred, or retained by the defendants, who reasonably ought to have known they were proceeds of unlawful activities.

These acts contravened sections 27(1)(b) and 14(1) of the Cyber Crimes Act (2015, amended in 2024) and sections 18(2)(b) & (d) of the Money Laundering (Prevention and Prohibition) Act, 2022.

The defendants pleaded not guilty to all charges.

However, the prosecution opposed their bail applications, citing their potential to flee.

After deliberation, Justice Lewis-Alagoa granted bail at ₦50 million each, with a condition that one surety must own landed property within the court’s jurisdiction.

The suspects were remanded in custody until they meet the bail terms.

The court has adjourned the case to March 13, 2025, for the commencement of trial.

This case highlights the growing risks of cybercrime within Nigeria’s banking sector. With internal collusion amplifying vulnerabilities, financial institutions are urged to enhance their cybersecurity frameworks to safeguard customer funds.

Sterling Bank has yet to issue an official statement on the incident but is expected to cooperate fully with investigators to ensure justice is served.

Waza, a B2B payment provider for emerging market businesses, has announced the launch of Lync, its new multi-currency account platform that combines market-leading foreign exchange (FX) liquidity solutions with a cutting-edge banking experience to power a new age of global trade for emerging market businesses incorporated in the US, UK or EU.

Despite being incorporated and having operations in the US, UK and EU, many businesses that serve emerging markets such as Africa (especially if these businesses have an emerging market founder/shareholder/directorship) have significant difficulty accessing financial services such as bank accounts and credit facilities, due to arbitrary compliance thresholds, perceived risk appetite and other issues.

There have also been recent incidents where financial services providers have unexpectedly discontinued services for emerging market businesses, leading to substantial financial losses in the form of uncompleted transactions and disrupted trade flows.

This ongoing situation means businesses cannot adequately plan and scale their operations, hindering them from reaching their full potential and taking advantage of the opportunities available to them.

Lync is designed to address these challenges and provide a viable alternative to the existing options for businesses that serve emerging markets. The platform offers multi-currency accounts, starting with USD, EUR, GBP, NGN and Stablecoins, with payments to more than 100 countries.

These accounts are more than just wallets, they are fully featured accounts which support various payment methods, including ACH, Fedwire, SWIFT, and other local payment rails like Faster Payments in the UK, making it easier for businesses with operations across the world to effectively manage their payments and foreign exchange (FX) liquidity on one platform.

Funds held in these accounts are FDIC-insured, giving businesses the confidence to explore new markets and take on new opportunities. Additionally, Lync offers competitive foreign exchange (FX) rates, making it the ideal solution for companies looking to expand globally and manage their finances efficiently.

Waza raised $3m in seed funding and $5m in venture debt to scale its FX and trade financing operations. With Lync, it’s now providing these services within a comprehensive multi-currency banking product.

The first step for Waza was providing competitive foreign exchange (FX) and cross-border payments for businesses. Ultimately, Lync aims to give these businesses greater control over their payment operations and easier access to the global financial markets, with reduced need for intervention.

Lync is designed to enable emerging market businesses to engage in global commerce that was previously hindered by arbitrary thresholds and systemic barriers. Businesses with existing global operations, large enterprises that require efficient cross-border payments, as well as technology companies with a US, UK or EU parent, that need to manage multiple currencies and access to foreign exchange liquidity, can take advantage of Lync.

Businesses seeking to expand internationally and companies that regularly engage in international payments can also leverage the platform.

Speaking about the new platform, Maxwell Obi, CEO and Co-founder of Waza, said, “We created Lync to serve as a pivotal platform that will not only support business payments and liquidity but also drive broader economic growth and prosperity in emerging markets.

“By unlocking access to essential financial services, we are confident that Lync will empower more businesses to expand, reach new markets and overcome longstanding financial barriers.

“We are incredibly excited about the potential of Lync to transform how businesses operate, making it easier for them to scale, optimize cash flow, and drive sustainable growth.”

Waza is registered in the US as a Money Service Business (MSB) dealing in foreign exchange and money transmission and has partnered with financial institutions such as Visa, CurrencyCloud and others to provide payment services and account issuance.

The company’s founding team consists of Maxwell Obi (a 2x founder and experienced fintech entrepreneur) and Emmanuel Igbodudu (a senior software engineer with extensive global experience with companies like Revolut and Moniepoint).

Since commencing operations in stealth in January 2023, Waza has served hundreds of businesses, processing over $700m in annualised payment volume, facilitating business payments across 6 continents and impressively growing at 20% monthly.

The company currently has active operations in several countries in Africa including Nigeria and Ghana, with imminent plans for expansion into new markets across the world.

PalmPay, a Mobile Money and digital payment platform has reaffirmed its role as a mobile payment provider, correcting the insinuation that it is a loan App.

Chika Nwosu, Chief Executive Officer, PalmPay, speaking at a press conference in Lagos clarified that PalmPay’s core mission is to provide seamless payment solutions and financial services, not to issue loans.

This clarification became necessary against erroneous messages in some social media platforms that PalmPay is a loan App, as well as individuals wearing PalmPay-branded clothing allegedly been involved in arresting loan defaulters, raising concerns about the company’s role in debt recovery practices.

He explained that all lending activities on its platform are conducted by third-party financial institutions leveraging its ecosystem, not PalmPay itself.

“PalmPay is not a loan App. We provide a platform for third-party financial institutions to offer their services, including loans, to our users. These institutions operate independently and comply with all regulatory requirements,” Nwosu explained.

More so, Chika Nwosu identified smartphone penetration, internet connectivity and innovative technologies as key factors that are crucial to increased access to mobile money services in Nigeria.

According to him, with smartphone penetration projected to reach 65% by 2026 as well as improved internet infrastructure, more Nigerians will be enabled to access mobile money services.

He disclosed that, with fintech companies such as PalmPay evolving through digital wallets and seamless payment gateways, accessibility to mobile money service was bound to expand soon.

He emphasized that with demand for affordability of financial services growing, more opportunities would be unlocked for PalmPay in the nearest future.

“From under 10,000 agents in 2015 to over 1.5 million agents in 2023, agent networks have become the backbone of mobile money operations in Nigeria. For this reason, we are more likely to see a sharp increase in the number of mobile money agents and merchants. Apart from that, MMOs will increasingly use artificial intelligence to improve customer experiences, such as machine learning, predictive analytics, and fraud detection,” he said.

Donald Ubeh, Head, Risk and Compliance, MLRO at PalmPay, while highlighting the impact of fintech companies such as PalmPay, explained that the coming of PalmPay has led to economic empowerment particularly for individual users and several Small and Medium Scale enterprises.

He noted that many Nigerians including bank customers have migrated their funds to PalmPay owing to convenience and accessibility it provides.

He added that mobile money operators were conceived with the aim of driving financial inclusion for the underserved and unbanked population.

According to EFInA, increasing adoption of fintech companies by Nigerians has led to increase in financial inclusion rate by 13% in 13 years.