Court Orders Final Forfeiture of ₦1.29bn Stolen After Sterling Bank System Glitch

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The Federal High Court in Ikoyi, Lagos, has ordered the final forfeiture of ₦1,292,798,746.81, which was fraudulently withdrawn from Sterling Bank Plc following a system error. The sum is now forfeited to the Federal Government for the benefit of the bank.

Justice D.I. Dipeolu issued the ruling after reviewing a motion filed by the Economic and Financial Crimes Commission (EFCC), which investigated the case.

According to the EFCC’s official statement released on Saturday, the stolen amount was part of over ₦2.5 billion illicitly taken by various individuals after a technical glitch occurred in Sterling Bank’s systems. The bank reported the incident to the EFCC, prompting an extensive probe that traced the money to several personal and corporate accounts.

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Among the identified accounts were:

  • M Sharif Inter-Trading & Marketing Co. Ltd (UBA) — ₦900 million

  • Mustapha Abubakar (UBA) — ₦255.87 million

  • Mustapha Sharif Abubakar (UBA) — ₦12.19 million

  • Mustapha Sharif Abubakar (Jaiz Bank) — ₦41.12 million

  • Abubakar Mustapha Sharif (First Bank) — ₦19.07 million

  • Mustapha Sharif Abubakar (Sterling Imal) — ₦30.85 million

These accounts were previously frozen under an interim forfeiture order granted in March 2025, with a public notice published in The Punch on March 24, giving affected parties a chance to contest the order.

In her final judgment, Justice Dipeolu said, “Having gone through the motion and attachments, I find the application meritorious and same is accordingly granted.” She then ordered the funds be permanently forfeited to the Federal Government, designating Sterling Bank as the beneficiary.

This judgment follows a similar case in 2024, when a Federal High Court in Abuja froze accounts linked to ₦139 million mistakenly credited to users due to a glitch at TAJ Bank Ltd.

Financial analysts warn that the increasing reliance on digital platforms exposes banks to growing cybersecurity risks. A cybersecurity expert emphasized that strengthening institutional frameworks, enforcing safe digital practices, and improving agency collaboration are critical to safeguarding Nigeria’s financial ecosystem.

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