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The Economic and Financial Crimes Commission (EFCC) is investigating Obinna Nwaobi, a former bank head of operations, over the alleged diversion of N515 million from a loan repayment account belonging to DAHUA Paper Company.
The commission disclosed this in a post on its official X account on Thursday, following a petition submitted by the bank against the former employee.
The funds were allegedly withdrawn in three transactions using forged documents and without the customer’s authorisation after the account was reactivated in June 2024.
EFCC investigates N515 million diversion
According to the EFCC, its Enugu Zonal Directorate commenced investigations into Nwaobi following a petition dated June 22, 2026, submitted by the bank.
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The commission said the former Head of Operations allegedly authorised the diversion of N515 million from DAHUA Paper Company’s Debt Service Reserve Account (DSRA), which was maintained for repayment of a BOI loan.
- “Operatives of the Enugu Zonal Directorate of the Economic and Financial Crimes Commission, EFCC have commenced investigations into the activities of one Obinna Nwaobi, a former Head of Operations of a new generation bank for allegedly authorising the criminal diversion of the sum of N515,000,000.00 (Five Hundred and Fifteen Million Naira) from the Debt Service Reserve Account, DSRA belonging to a customer, DAHUA Paper Company, without authorization,” the EFCC said.
The bank alleged that the money was transferred in three tranches of N200 million, N150 million and N165 million on July 17, 2024.
The petition stated that the account was reactivated in June 2024 but was not placed on Post No Debit (PND), a restriction that would have prevented withdrawals and transfers.
The transactions were allegedly processed through the bank’s Okpara Avenue branch in Enugu using forged documents.
Preliminary investigations showed that the account was not intended for ordinary customer transactions and that withdrawals or transfers to third parties required approval from the Account Officer, Regional Manager and Credit Monitoring Team.
The EFCC said the transactions allegedly bypassed these approval requirements, with Nwaobi reportedly authorising the withdrawals using forged documents.
Separate $510,000 case involves Lantern Gate
The N515 million investigation is not the first case involving allegations of unauthorised withdrawals against Nwaobi.
- He is already standing trial before a Federal High Court in Enugu over the alleged diversion of $510,000 belonging to Lantern Gate Nigeria Limited, another customer of the same bank.
- The bank had petitioned the EFCC, alleging that the funds were transferred into six different accounts without the customer’s approval following authorisation by Nwaobi.
- He was arraigned on November 13, 2025, on a nine-count charge bordering on forgery and criminal diversion of the $510,000.
The EFCC said Nwaobi would be charged to court over the N515 million case after investigations are concluded.
Other bank fraud cases reach Nigerian courts
The investigation comes amid other financial fraud cases involving former banking officials and individuals prosecuted by the EFCC.
- In a related case, the Lagos State Special Offences Court in Ikeja recently convicted former banker Christopher Jackson Edeh over a N2.7 billion fraud involving the alleged alteration of bank account details linked to NNPC Trading Limited, the Lagos and Kano state governments and other entities.
The EFCC said Edeh was found guilty on nine charges involving fraudulent false accounting and unlawful access to a computer system. His trial began with his arraignment on February 28, 2024.
- The affected accounts included the Kano State Government Power Intervention Fund, NNPC Trading Limited, Stallion Vision Ltd, the Lagos State Government Blue Line, the State Contributory Pension Account and Chukwuemeka Odumegwu Ojukwu University.
One charge alleged that he altered Dangote Cement Plc’s customer account details, while another accused him of accessing the bank’s Entrust portal to facilitate the alleged theft of N2.74 billion.
- Justice O.O. Abike-Fadipe ruled that the prosecution had established his guilt beyond reasonable doubt on all nine counts. Edeh received concurrent sentences of five years on the first seven counts and two years on the remaining two, resulting in an effective five-year prison term without an option of fine.
Other cases include the January 2021 conviction of former Finbank Plc Managing Director Okey Nwosu and three former directors over the theft and unlawful conversion of N10.9 billion.
