The Nigeria Police Force has accused Sterling Bank of complicity in a $122 million fraud and money laundering scandal tied to a disputed loan issued to Miden Systems Limited, an oil and gas company based in Lagos.
According to a police report dated April 29, 2025, Sterling Bank granted Miden Systems a $30 million loan in 2012 to finance a project for Shell Petroleum Development Company of Nigeria (SPDC). However, the bank is now being accused of financial mismanagement and unauthorized transactions involving over $122 million deposited by Shell as payment for services rendered.
The report noted that Sterling Bank failed to present adequate documentation to counter allegations raised by Miden Systems, stating: “Evidence corroborates alleged offences of financial mismanagement, fraudulent debits, misappropriation of funds, stealing, and money laundering.”
Miden Systems alleges that Sterling Bank mishandled large sums paid into four of its accounts—two in naira and two in U.S. dollars—between 2012 and 2017. Shell, concerned by the developments, petitioned the House of Representatives Committee on Public Petitions, prompting a referral to the Inspector General of Police for investigation.
The police report detailed several questionable withdrawals from Miden’s account, including:
- $1.2 million on August 29, 2016, transferred without a clear destination.
- $2.41 million on September 27, 2016, labeled “AA Loan Repayment.”
- $1.25 million on November 14, 2016, under the same description.
- $28.3 million on January 16, 2017, also marked as “AA Loan Payoff.”
Sterling Bank’s account officers reportedly gave vague explanations, claiming the “AA Loan Repayment” label was a generic term used during loan servicing—an explanation the police deemed insufficient and lacking in transparency.
The report also criticized the bank for allegedly withholding account statements from Miden and failing to properly communicate the debits made from its accounts.
In light of the findings, the House of Representatives has scheduled a public hearing on the matter. Sterling Bank, however, has moved to stop the proceedings by securing an ex parte court injunction, citing concerns over reputational harm.
Innocent Usoro, legal representative for Miden Systems, accused the bank of misleading the court to obtain the injunction.
As of press time, Sterling Bank’s head of corporate communications has not issued a statement. A court hearing on the case is set for Wednesday, May 7.
