Business
N1.4bn Fraud Rocks Wema Bank
The management of Wema Bank Plc has uncovered a fraud allegedly perpetrated by a top officer of one of its subsidiaries running into about N1.427 billion.
According to sources within the bank who spoke on conditions of anonymity, the said officer (names withheld) was a top manager with a subsidiary of the bank until September 2008, when he was relieved of his duties on account of the fraud.
The man, who was also said to be a proprietor of a new generation church, was alleged to have been involved in a fraud on the account of one of the customers of the subsidiary.
The source disclosed that the said manager allegedly moved N350 million out of the account based on a letter he had forged. “The bank thereafter, wrote a petition to the Special Fraud Unit (SFU) against the diversion and stealing.
“During the course of investigations, it was discovered that the sum of N330 million was used to acquire a property in Ikoyi, Lagos. However, while the bank’s petition was for N350 million, the police, during the course of investigations, stated that the amount recoverable was N810 million,” the source stated.
The source added that, based on the fact that he could not return the money to the account, he handed the property over to the chairman of the company who sold the property for N810 million, while the police directed that the proceeds of the sale should be paid over to the bank.
According to the source, the sum of N655 million has been recovered with regard to this original fraud, leaving a balance un-recovered sum of N155 million from that particular fraud.
According to the source, there are a number of other frauds currently undergoing investigation, traceable to the same manager. Documents made available to our reporter, revealed that the top manager allegedly fraudulently converted a total sum of N617,217,963.72 (Six hundred and seventeen million, two hundred and seventeen thousand, nine hundred and sixty-three naira, seventy-two kobo) from the subsidiary between August 2007 and September 2008.
For instance, he allegedly converted a N218 million cheque in favour of the company into an unidentified beneficiary’s account and allotted 10 million units of Wema Bank Plc’s shares currently worth N61,010,362.80 to himself without payment, among a series of other fraudulent activities.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.