A shocking case of financial fraud has rocked Nigeria’s banking sector, revealing how insider collusion enabled foreign nationals to siphon N17 billion from two Nigerian ceramic companies. This scandal, involving a Lokoja Branch Zenith Bank Manager, Salawu Nasiru, and Chinese expatriates Liu Yangxi and Ma Zhuang, highlights the dangerous vulnerabilities in the nation’s financial system.
A Web of Deception
Between November 2021 and August 2023, Salawu, Liu, and Ma orchestrated an elaborate scheme to obtain fraudulent loans in the names of BN Ceramic Industry Limited and NB Ceramic Limited without the knowledge of the companies’ management. Liu, a director and shareholder in the ceramic companies, falsified signatures and posed as managing director to facilitate the loans.
With the complicity of Salawu, they secured five loans through forged documents, including the Offer of Credit Facility and board resolutions. The funds were then funneled into companies controlled by Liu and laundered into Chinese accounts, leaving the ceramic companies financially compromised.
Breakdown of Fraudulent Transactions
- First Loan (N3 Billion) – November 4, 2021
- Assets of BN and NB Ceramic were unlawfully pledged as collateral.
- N69.9 million was paid to Salawu as a kickback, while the remaining funds were funneled into Liu-controlled companies and laundered abroad.
- Second Loan (N6 Billion) – August 30, 2022
- Secured under the pretext of financing a contract for the AKK Project.
- Assets of the ceramic companies were again used as unauthorized collateral. Funds were diverted offshore.
- Third Loan (N8 Billion) – August 31, 2023
- Claimed to finance an ethanol facility in Makurdi.
- Funds were diverted to Wetech Industry Limited and ultimately laundered into Chinese accounts. N6 billion was transferred to Pure Biotech Company Limited, converted into Chinese Yuan, and moved to personal accounts.
Economic Sabotage on a National Scale
The fraudulent actions of these individuals jeopardized the financial stability of the ceramic companies and posed a significant threat to the Nigerian economy. The petition to the Department of State Services (DSS) described this as a direct attack on the integrity of Nigeria’s banking system.
Calls for Justice and Reform
Petitions to the DSS and Economic and Financial Crimes Commission (EFCC) demand a comprehensive investigation into the fraud and swift prosecution of the perpetrators. Additionally, the Central Bank of Nigeria (CBN) must take immediate action to tighten regulations and enforce stringent oversight mechanisms to prevent such incidents in the future.
Restoring Faith in Nigeria’s Banking System
This case serves as a wake-up call to address systemic weaknesses within the banking sector. It underscores the urgent need to:
- Enhance Oversight: Strengthen regulatory frameworks to prevent insider collusion.
- Promote Accountability: Hold individuals in positions of power accountable for breaches of trust.
- Protect Public Trust: Ensure transparency and integrity in banking operations.
Neglecting these reforms risks further eroding public trust in financial institutions and undermining Nigeria’s economic stability.
A National Concern
The scale of this fraud highlights the need for a unified response from regulatory authorities and financial institutions. As the petition warns, unchecked fraudulent activities of this magnitude could precipitate a financial crisis and destabilize the banking sector.
Swift action is critical to restore faith in Nigeria’s financial institutions, safeguard public resources, and prevent future scandals of this nature.
