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Union Bank system hacked as customers lose N9.3 billion to fraud

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Union Bank of Nigeria Plc led by Yetunde Oni, is currently grappling with a massive N9.3 billion fraud following a significant operational system breach, THE WITNESS reports.

The development comes exactly one year and three months after the Central Bank of Nigeria (CBN) sacked the bank’s board and entire management, citing governance failures. A new management team was subsequently appointed to lead the financial institution.

Union Bank is battling to recover the sum of N9,329,322,870.00 (nine billion, three hundred and twenty-nine million, three hundred and twenty-two thousand, eight hundred and seventy naira), withdrawn from customers’ accounts without authorization.

In a suit marked FHC/L/CS/629/2025, filed before the Federal High Court in Lagos, seen by THE WITNESS, Union Bank sought a preservative order compelling the financial institutions involved to place Post No Debit restrictions on the accounts of all beneficiaries and to return the stolen funds traced to their institutions.

According to the bank, the fraud followed an operational failure and fraud in its core banking system on March 23, 2025, which led to unauthorized transfers from customers’ accounts.

An affidavit deposed to by Oluwasegun Falola, head of the E-Fraud Investigations Department at Union Bank, stated that the funds were fraudulently and erroneously transferred from the bank to various accounts across 53 financial institutions.

Falola explained that on March 23, 2025, the bank observed that N9.3 billion had been debited from customer accounts and dispersed into various accounts maintained by the respondent banks. He added that Union Bank immediately contacted the banks involved in a bid to halt further dissipation of the funds.

“The Fraud Desk Department of the bank, in the course of its investigations, discovered that the monies were transferred in trickles into several accounts domiciled with the 1st to 54th Respondents,” the affidavit stated.

Union Bank attributed the unauthorized debits to a system glitch and exploitation, which it says enabled the illicit transfers.

“The funds were erroneously and fraudulently transferred from customers’ accounts.

“Upon further investigation, it was found that the funds were subsequently moved from these primary beneficiary accounts to other accounts also held by the respondents.”

The bank disclosed that it had submitted the list of recipient accounts to the respective financial institutions as a preliminary measure to recover any remaining funds

To support its recovery efforts, the bank said its internal audit and legal departments compiled detailed reports tracing the flow of funds and identifying all beneficiary accounts.

When the case was mentioned on April 2, 2025, Union Bank’s counsel, A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being moved.

“₦9.3 billion has been moved from the account, and they are still moving funds. We now have more people involved in moving the funds,” the lawyer told the court.

To support its recovery efforts, the bank said its internal audit and legal departments compiled detailed reports tracing the flow of funds and identifying all beneficiary accounts.

When the case was mentioned on April 2, 2025, Union Bank’s counsel, A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being moved.

“₦9.3 billion has been moved from the account, and they are still moving funds. We now have more people involved in moving the funds,” the lawyer told the court.

In his ruling, Justice Deinde Dipeolu agreed with the submissions and thereafter granted a motion ex parte filed by the bank concerning the unauthorized fund transfers.

“Having reviewed the motion ex parte, the application is hereby granted,” the judge ruled.

The incident has raised broader concerns about the security of Nigeria’s banking infrastructure, especially as interbank transactions continue to increase. Financial analysts suggest that outdated systems and inadequate oversight may be exacerbating vulnerabilities, heightening the risk of fraud and transactional errors.

Union Bank did not respond to THE WITNESS’ inquiries as at press time.

(S) Witnessngr

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FG reforms NYSC, replaces military leadership, redesigns uniform

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The Federal Executive Council has approved a comprehensive overhaul of the National Youth Service Corps, marking the first major restructuring of the scheme since it was established 53 years ago.The reforms, approved at the FEC meeting in Abuja on Monday, are aimed at repositioning the NYSC into a skills-focused, productivity-driven institution aligned with the Federal Government’s economic agenda.A key aspect of the reform is a change in the leadership structure of the scheme, with the NYSC set to be headed by a civilian, while the military will continue to provide security for corps members nationwide.The council also directed the Attorney-General of the Federation and the Federal Ministry of Youth Development to amend the NYSC Act and relevant regulations to provide legal backing for the approved changes and enable their implementation.

Announcing the approval on X, the Minister of Youth Development, Ayodele Olawande, described the reforms as the first holistic review of the scheme in its 53-year history.He said, “We are transforming the Scheme into a platform that not only unites Nigeria but also equips our young people with the skills, experience and opportunities they need to thrive in a fast-changing world.”

Olawande said the approved reforms would reposition the scheme as “a skills-driven, productivity-focused and youth-empowering institution that aligns with President Bola Tinubu’s vision of building a $1 trillion economy.”

According to him, the reforms include “a technology-driven call-up process, risk-sensitive deployment to better protect corps members, a redesigned six-week orientation programme with stronger focus on leadership, entrepreneurship, digital skills and specialised career streams, skills-based primary assignments aligned with academic background and career pathways, modern governance with civilian operational leadership while the military continues to provide security support, improved camp standards through a national grading and certification system, and a new graduation ceremony to replace the Passing Out Parade, alongside a redesigned NYSC uniform that reflects professionalism and national pride.”Olawande said the reform process began in 2025 through a broad-based review involving the Federal Ministry of Youth Development, the Federal Ministry of Education and the Office of the Special Adviser to the President on Policy and Coordination before receiving FEC approval.He added, “This is more than a reform of an institution. It is an investment in Nigeria’s greatest asset, our young people. The future of the NYSC begins now, and it is brighter, more relevant and more impactful than ever.”Established in 1973 following the Nigerian Civil War, the NYSC was created to promote national unity by deploying graduates to states outside their regions of origin for one year of compulsory national service.The latest reforms represent the first comprehensive review of the scheme since its creation, with the Federal Government saying the changes are designed to make the institution more relevant to Nigeria’s contemporary economic and youth development needs.

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PRESIDENT SWEARS IN NEW COMMISSIONERS FOR RMAFC, NPC

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President Bola Tinubu has sworn in new Commissioners for the National Population Commission (NPC) and the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).The ceremony took place before the commencement of the Federal Executive Council meeting, this Monday. Former chairman, National Hajj Commission, Abdullahi Mukhtar Mohammed from Kaduna state and Amina Gamawa representing Bauchi took oath of office as federal commissioners for the revenue commission. Six new Commissioners were inaugurated for the population commissioner. They are Kolawole Oladipupo Alabi – Ekiti State, Nasiru Mu’azu – Zamfara State, Isaka Alada Yahaya – Kwara State, Prof. Sadiq Isah Radda – Katsina State, Suleiman Umar – Jigawa State and Chiso Abdullahi Dattijo from Sokoto State.

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Governor Dauda Lawal Chairs Security Council Meeting, Vows Unprecedented Support for Frontline Troops

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Governor Dauda Lawal of Zamfara State has reaffirmed his administration’s unwavering resolve to back security forces in the ongoing campaign against insurgency, banditry and other violent crimes plaguing the state.Presiding over the weekly State Security Council meeting on Thursday, June 25, at the Government House in Gusau, the governor convened the state’s top security brass for a high-level strategic session aimed at recalibrating the state’s counter-insurgency approach.In a terse but firm statement, Governor Lawal disclosed that deliberations centered on reinforcing troop deployments in high-risk zones, fast-tracking intelligence-sharing mechanisms and overhauling rapid-response protocols to better safeguard civilian populations.”I want to make it clear to every service commander in this room; the welfare and operational readiness of our troops remain non-negotiable. My administration stands ready to authorize every required resource logistical, material and otherwise to ensure they operate at full capacity,” Lawal declared.The governor underscored that his foremost priority remains the restoration of lasting peace across Zamfara and he assured security chiefs of his open-door policy, urging them to channel operational needs directly to his office without bureaucratic bottlenecks.With the meeting concluding, sources indicate that concrete action plans are being finalized to boost joint task force patrols and community intelligence networks, signaling a renewed offensive push in the coming weeks.

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