KEY POINTS

• The EFCC is investigating former bank Head of Operations Obinna Nwaobi over the alleged diversion of funds belonging to DAHUA Paper Company.
• The bank’s petition alleges that ₦515 million was withdrawn from the company’s Debt Service Reserve Account in three transactions.
• Preliminary investigations indicate that the account was meant exclusively for loan repayments and required specific approvals for transfers.
• Nwaobi is also standing trial over an alleged unauthorised withdrawal of $510,000 from the same bank.
• The EFCC says it will charge him to court after concluding its investigation.

MAIN STORY

The Economic and Financial Crimes Commission (EFCC) has commenced an investigation into former Head of Operations of a new generation bank, Obinna Nwaobi, over the alleged diversion of ₦515 million from a customer’s account.

EFCC spokesperson, Dele Oyewale, disclosed this in a statement on Thursday in Abuja, saying the investigation followed a petition submitted by the bank against the former operations executive.

According to Oyewale, the petition, dated June 22, 2026, accused Nwaobi of authorising the movement of ₦515 million from the Debt Service Reserve Account (DSRA) of DAHUA Paper Company without the customer’s authorisation.

The bank alleged that the money was transferred in three transactions of ₦200 million, ₦150 million and ₦165 million on July 17, 2024.

The petition stated that the account had been reactivated in June 2024 but was not placed on Post No Debit, a restriction that would have prevented withdrawals and transfers. The bank alleged that this failure allowed the disputed transactions to take place.

It further claimed that the transactions were processed at its Okpara Avenue branch in Enugu using forged documents and authorised by Nwaobi, who was then Head of Operations.

THE ISSUES

The EFCC’s preliminary findings indicate that the account was a Bank of Industry loan repayment account, designed to receive repayments rather than support ordinary customer withdrawals or transfers to third parties.

Oyewale said such transactions were not permitted without approval from the account officer, regional manager and credit monitoring team.

The commission said the disputed transfers were nevertheless processed using allegedly forged documents, with Nwaobi accused of authorising them in his capacity as Head of Operations.

The case raises questions about the bank’s internal controls, particularly the failure to place the reactivated account on Post No Debit and the alleged processing of transactions that required multiple levels of approval.

WHAT’S BEING SAID

“The commission had received a petition dated June 22, 2026 from the bank against Nwaobi, alleging that the said sum left its customer’s account in three tranches of N200 millions N150 millions and N165 millions respectively on July 17, 2024.” – Dele Oyewale, EFCC spokesperson.

“Withdrawals or transfers to third parties are not allowed on loan repayment accounts without the approval of the Account Officer, the Regional Manager and the Credit Monitoring Team.” – Dele Oyewale, EFCC spokesperson.

WHAT’S NEXT

Oyewale said Nwaobi is already standing trial before a Federal High Court in Enugu over a separate case involving the alleged unauthorised withdrawal of $510,000 from the same bank.

The EFCC said it would charge him in connection with the ₦515 million case after completing its investigation.

BOTTOM LINE

The investigation centres on alleged weaknesses in the bank’s account controls and the authorisation of transactions involving funds reserved for loan repayment. The EFCC’s findings will determine whether Nwaobi faces a fresh prosecution over the disputed ₦515 million.