Sterling Bank Under Investigation for Alleged $122M Fraud Against Miden Systems

The Nigeria Police Force has implicated Sterling Bank in a $122 million fraud and money laundering case linked to a controversial loan issued to Miden Systems Limited, a Lagos-based oil and gas firm. According to a police report, the bank failed to provide transparent records or valid explanations for multiple debits from Miden’s accounts, which were funded by Shell Petroleum for a project executed by Miden. The report highlights serious allegations including financial mismanagement, unauthorized fund transfers, and denial of access to account statements.

The investigation stems from a $30 million loan Sterling Bank issued to Miden Systems in 2012 to finance a contract with Shell Petroleum Development Company (SPDC). Shell later deposited over $122 million into Miden’s accounts for services rendered, but discrepancies soon emerged. Miden accused the bank of mishandling the funds, and Shell, citing concerns over mismanagement, petitioned the House of Representatives Committee on Public Petitions.

The Committee referred the case to the Inspector General of Police, leading to a detailed investigation. The police report revealed that Miden operated four accounts with Sterling Bank—two in naira and two in U.S. dollars—and that all funds from Shell were routed through these accounts. It uncovered a pattern of unexplained withdrawals, including a $28 million debit described vaguely as a “loan payoff” and other significant transfers lacking transparency or proper narration.

Sterling Bank’s failure to provide documentation or meaningful responses during questioning raised further concerns. When asked about the term “AA Loan Repayment” used in debit descriptions, the bank’s officers gave vague explanations, which the police deemed inconsistent with principles of transparency and accountability.

With tensions escalating, the House of Representatives scheduled a public hearing. In a controversial move, Sterling Bank sought and obtained an ex parte court injunction to block the hearing, citing reputational risks. However, Innocent Usoro, representing Miden Systems, has alleged that the bank misrepresented facts to the court in securing the injunction.

A court hearing is now set for Wednesday, May 7, as Miden Systems continues its push for accountability, justice and transparency.

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