Sterling Bank web of scandals, expose significant management failures and ethical lapses

 

Sterling Bank has recently found itself mired in a web of scandals that expose significant management failures and ethical lapses. From ongoing legal disputes to alarming internal fraud cases, the bank’s reputation is under siege. As these controversies unfold, it becomes increasingly clear that the management’s response or lack thereof has only exacerbated the situation.

At the heart of Sterling Bank’s troubles is its contentious legal battle with Miden Systems Limited, a case that has revealed troubling practices within the bank. Miden Systems alleges that Sterling Bank fabricated a $30 million loan using forged documents, made unauthorized deductions, and denied access to crucial account statements. The sheer audacity of these claims raises significant questions about the integrity of the bank’s operations and its commitment to ethical practices.

A January 2025 police report presented to the House of Representatives laid bare the bank’s shortcomings, highlighting suspicious transactions exceeding $122 million. Instead of addressing these serious allegations, Sterling Bank has opted to paint Miden Systems as a “chronic debtor” attempting to evade justice. This defensive posture only serves to undermine the bank’s credibility and raises concerns about its transparency.

*Internal Fraud Cases: A Culture of Complicity*

The bank’s internal fraud issues paint a damning picture of its management. In October 2025, a perpetrator exploited a glitch in Sterling Bank’s electronic transfer system to siphon off N81.3 million. The subsequent conviction of Ojora Kehinde, who received a seven-year prison sentence for his crimes, underscores the bank’s vulnerability to fraud. Yet, this is not an isolated incident; a former manager was sentenced to eight years in prison for pilfering N219 million in 2021, suggesting a deeper, systemic issue within the bank’s culture.

These cases of fraud reveal not only a failure in oversight but also a troubling environment where unethical behavior can flourish unchecked. The management’s inability to implement robust security measures raises grave concerns about their competence and commitment to safeguarding customer assets.

*Regulatory Breaches: A Disregard for Compliance*

Sterling Bank’s management has also come under fire for regulatory breaches that could have severe implications. A March 2025 report from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed that the bank opened an account for an unregistered entity, “Indo Kaduna MRTS JV Nigeria Limited,” enabling the transfer of billions of naira before the entity was legally incorporated. Such blatant disregard for banking regulations speaks volumes about the management’s approach to compliance and governance.

Additionally, the case of Olalekan Adejumo, a Lagos State resident, further illustrates the bank’s operational incompetence. Despite legal demands for the closure of a suspicious account opened in Adejumo’s name, Sterling Bank’s inaction has left the account active and unmonitored. This incident raises alarming questions about the bank’s adherence to the Know Your Customer (KYC) protocols and its overall commitment to customer protection.

The ongoing scandals surrounding Sterling Bank highlight a management in crisis, characterized by a pattern of unethical behavior, internal fraud, and regulatory failures. Rather than taking responsibility and working towards reform, the bank’s leadership appears more focused on deflecting blame. As these issues continue to unfold, it is imperative that stakeholders demand accountability and transparency from the management of Sterling Bank. The integrity of the banking sector hinges on the actions taken in the face of such grave allegations, and the time for reform is now.