In a shocking development that has thrown the Nigerian banking sector into panic, Union Bank of Nigeria Plc is currently battling to recover a staggering ₦9.3 billion stolen from customers’ accounts in what appears to be a massive cyber fraud operation.
The fraud, which reportedly occurred on March 23, 2025, involved the illegal siphoning of funds from multiple customer accounts into 54 different financial institutions, indicating a complex and coordinated system breach.
How the Heist Happened
According to court documents filed by Union Bank at the Federal High Court in Lagos (Suit No: FHC/L/CS/629/2025), the funds were stolen through unauthorized transfers that exploited a system glitch in the bank’s infrastructure.
The bank’s Head of E-Fraud Investigations, Oluwasegun Falola, stated in a sworn affidavit that the criminals executed the theft in small, scattered transactions to avoid detection.
“The money was moved in trickles across numerous accounts, making it difficult to immediately trace,” Falola disclosed.
He added that the breach was uncovered only after a forensic audit showed anomalies in account activities across several banking platforms.
Legal Action and Emergency Court Order
On April 2, 2025, Union Bank’s legal counsel, A. Adedoyin-Adeniyi, appeared before Justice Deinde Dipeolu to request an emergency Post No Debit (PND) order. The bank sought to freeze all accounts suspected to have received any part of the stolen funds.
“₦9.3 billion has already been moved, and the perpetrators are still shifting money into new accounts,” the counsel told the court.
The judge granted the request, effectively freezing all affected accounts pending the conclusion of investigations and legal proceedings.
Ongoing Risk and Wider Implications
The bank revealed that despite ongoing efforts to contain the damage, funds were still being actively laundered into new accounts. This suggests that the cybercriminals may be part of a larger international fraud network.
The incident raises significant questions about cybersecurity preparedness in Nigeria’s banking sector, especially in the wake of previous high-profile frauds involving other financial institutions.
A Troubling Pattern for Union Bank
This scandal is the latest in a series of challenges for Union Bank. Just 15 months ago, the Central Bank of Nigeria (CBN) dissolved the bank’s former board and executive management over governance and compliance failures.
The new management team, led by Managing Director Yetunde Oni, now faces renewed scrutiny from customers, regulators, and shareholders.
Analysts say the breach could further erode public confidence in the institution and may invite penalties from regulatory agencies, including the CBN and the Nigeria Deposit Insurance Corporation (NDIC).
Union Bank's Response
In a brief statement, Union Bank pledged its commitment to recovering the stolen funds and cooperating fully with law enforcement and regulatory bodies.
“We are working around the clock with relevant authorities to investigate the breach, recover stolen funds, and reinforce our system against future threats,” the statement read.
The bank also urged customers to remain calm, assuring them that their deposits remain insured and protected under the NDIC guidelines.
