Nigeria EFCC investigates ex-banker for alleged N515m diversion

The Economic and Financial Crimes Commission (EFCC) has launched an investigation into Obinna Nwaobi, a former Head of Operations at a commercial bank, for the alleged unauthorized diversion of N515 million.

The funds were reportedly taken from a Debt Service Reserve Account belonging to DAHUA Paper Company. According to a petition from the bank, the money was moved in three tranches of N200 million, N150 million, and N165 million on July 17, 2024. The bank alleges that the transactions were processed through its Okpara Avenue branch in Enugu using forged documents and were authorized by Nwaobi.

Preliminary investigations indicate the account was a Bank of Industry loan repayment account, which restricts withdrawals or third-party transfers without specific institutional approvals. The bank noted that while the account was reactivated in June 2024, it was not placed on Post No Debit status, which facilitated the alleged fraudulent activity.

Nwaobi is also reportedly facing legal proceedings in a Federal High Court regarding a separate allegation involving the unauthorized withdrawal of $510,000 belonging to Lantern Gate Nigeria Limited.