EFCC probes Providus Bank over alleged N270m illegal withdrawal from customer’s account

The Economic and Financial Crimes Commission (EFCC) is investigating Providus Bank Limited and one of its officials over an alleged unauthorized withdrawal of about N270 million from a customer’s account.

The probe follows a petition by Cornerblock Services Limited, which accused the bank of complicity in the withdrawal of funds belonging to it from the account of Boon Sales & Marketing Limited, a third-party account.

According to court filings, Cornerblock stated that it provided a blocked fund facility of N300 million to Boon Sales & Marketing Limited in December 2023 under a credit agreement executed in January 2024. Out of the facility, N270 million was disbursed into Boon Sales’ account with Providus Bank.

The company said the funds were subject to strict conditions, including an irrevocable lien and a joint signatory mandate requiring its consent before any withdrawal could be made.

However, Cornerblock alleged that the funds were withdrawn without its knowledge or approval, claiming that documents used to lift the lien and authorize the transactions were neither signed nor approved by it, and were therefore forged.

It further alleged that a Providus Bank staff member who managed the account and facilitated the transaction became unreachable shortly after the funds were moved, raising suspicions of internal involvement.

The firm said repeated demands for the return of the funds were ignored, prompting it to petition the EFCC, which has since requested documents and commenced an investigation into the transaction.

Cornerblock maintained that the nature of the allegations, particularly claims of forgery and unauthorized withdrawals clearly falls within the EFCC’s statutory mandate to investigate financial crimes.

In response, Providus Bank Limited has approached the Federal High Court in Lagos seeking to restrain the EFCC from further investigating the matter, describing the dispute as purely civil and contractual.

In an originating motion for judicial review, the bank asked the court to stop the anti-graft agency from “further investigating, inviting, summoning or harassing” it over the transaction, which it said arose from the operation of a corporate account.

The bank also sought to quash a December 19, 2025 letter issued by the EFCC requesting documents related to the transaction.

Providus Bank argued that the issues raised by Cornerblock relate strictly to banking instructions, account mandates, and corporate resolutions, insisting that no allegation of fraud or financial crime was established in the petition.

It further relied on a prior review by the Bankers’ Committee, an industry dispute resolution body under the Central Bank of Nigeria, which reportedly found no wrongdoing on the part of the bank. However, Cornerblock argued that any prior review by the Bankers’ Committee does not preclude a criminal investigation, noting that the body lacks jurisdiction over alleged financial crimes.

According to the bank, the EFCC’s involvement amounts to an overreach of its statutory powers, warning that the use of criminal investigative processes in what it described as a commercial dispute is oppressive and could harm its operations and reputation.

The bank also asked the court to restrain Cornerblock from using the EFCC as a means of enforcing what it termed a commercial claim.

Court records show that on February 25, 2026, the Federal High Court granted the bank leave to commence judicial review proceedings and ordered that the leave should operate as a stay of further EFCC actions pending the determination of the case.

The case, which highlights the dispute over whether the transaction constitutes a civil disagreement or a criminal act, is currently before Justice Daniel Osiagor of the Federal High Court in Lagos and is scheduled for hearing on July 3, 2026.

Dafe Ivwurie, head of corporate communications at Providus Bank, did not respond to The Witness inquiries as of press time.