The Economic and Financial Crimes Commission (EFCC) has launched an investigation into Obinna Nwaobi, a former head of operations at a commercial bank, over the alleged unauthorized diversion of N515 million belonging to a customer. According to the EFCC, the funds were transferred in three tranches of N200 million, N150 million, and N165 million on July 17, 2024, from a Debt Service Reserve Account (DSRA) belonging to DAHUA Paper Company. The bank reported the incident to the EFCC on June 22, 2026.
The EFCC's Enugu Zonal Directorate is handling the case, which was referred to the commission by the bank. Preliminary investigations revealed that the account in question was a Bank of Industry loan repayment account, which was not accessible to customers because it was meant for loan repayments. The bank alleged that withdrawals or transfers to third parties are not allowed on loan repayment accounts without the approval of the Account Officer, the Regional Manager, and the Credit Monitoring Team.
The suspect, Obinna Nwaobi, is also facing trial before a Federal High Court in Enugu over the alleged diversion of $510,000 belonging to another customer of the same bank, Lantern Gate Nigeria Limited. He was arraigned on November 13, 2025, on a nine-count charge bordering on forgery and the criminal diversion of the funds. The EFCC said the $510,000 was allegedly transferred to six different accounts without the customer’s authorization.
According to the EFCC, the transactions were processed at the bank's Okpara Avenue branch in Enugu using forged documents and authorized by Mr. Nwaobi, who was the head of operations at the time. The commission stated that it would charge Mr. Nwaobi to court over the N515 million allegation upon the conclusion of investigations.
The EFCC's investigation into Mr. Nwaobi's activities is ongoing, with the commission working to gather more evidence and determine the extent of his involvement in the alleged diversion of funds. The case has raised concerns about the banking sector's internal controls and the need for greater oversight to prevent similar incidents in the future.
The suspect's actions have also sparked concerns about the security of customer funds in the banking system. The EFCC's efforts to investigate and prosecute those involved in financial crimes are seen as a step towards addressing these concerns and promoting greater accountability in the financial sector.
The EFCC has urged the public to be vigilant and report any suspicious transactions or activities to the relevant authorities. The commission has also emphasized its commitment to investigating and prosecuting financial crimes, including cases involving the diversion of customer funds.
Key points
- The EFCC is investigating Obinna Nwaobi, a former bank head, over the alleged diversion of N515 million from a customer account.
- The suspect is also facing trial for the alleged diversion of $510,000 belonging to another customer.
- The EFCC has promised to charge Mr. Nwaobi to court upon the conclusion of investigations.
