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The EFCC is investigating former bank Head of Operations, Obinna Nwaobi, over the alleged diversion of ₦515 million belonging to DAHUA Paper Company.
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The money was allegedly withdrawn in three tranches of ₦200 million, ₦150 million and ₦165 million from the company’s Debt Service Reserve Account on July 17, 2024.
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The bank accused Nwaobi of authorising the transactions with forged documents after the account was reactivated without the required Post No Debit restriction.
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The former banker is already standing trial over the alleged unauthorised withdrawal of $510,000 belonging to another customer of the same bank.
November 06, (THEWILL) – The Economic and Financial Crimes Commission (EFCC) has commenced investigations into former Head of Operations of a new-generation bank, Obinna Nwaobi, over the alleged criminal diversion of ₦515 million belonging to one of the bank’s customers, DAHUA Paper Company.
The commission said the former banker was being investigated for allegedly authorising the unauthorised withdrawal and transfer of the funds from the company’s Debt Service Reserve Account (DSRA) through transactions allegedly facilitated with forged documents.
EFCC spokesperson, Dele Oyewale, who disclosed this in a statement, said the investigation followed a petition submitted by the bank against Nwaobi on June 22, 2026.
According to Oyewale, the bank alleged that the money was withdrawn from the customer’s account in three separate transactions of ₦200 million, ₦150 million and ₦165 million on July 17, 2024.
The transactions were reportedly processed through the bank’s Okpara Avenue branch in Enugu and allegedly authorised by Nwaobi, who was the Head of Operations at the time.
How Alleged ₦515m Diversion Occurred
Providing details of the petition, Oyewale said the bank alleged that the account from which the funds were withdrawn had been reactivated in June 2024 but was not placed on a Post No Debit (PND) restriction as required.
A PND restriction is a banking control measure that prevents withdrawals and transfers from an account, thereby helping to protect funds against unauthorised transactions.
The bank claimed that the failure to impose the restriction following the account’s reactivation created the opportunity for the alleged fraudulent withdrawals. It further alleged that the transactions were processed using forged documents and authorised by Nwaobi.
“The petitioner explained that the said account from which the money was moved was reactivated in June 2024. Upon reactivation, the account was not placed on Post No Debit as required, which led to the fraudulent withdrawals from the account. These transactions were processed from our Okpara Avenue, Enugu Branch, using forged documents and authorised by Obinna Nwaobi (Head of Operations)”, the bank alleged, according to Oyewale.
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The EFCC spokesperson said preliminary investigations established that the account was a Bank of Industry (BOI) loan repayment account, which was not designed for ordinary customer transactions.
Oyewale explained that the account was specifically maintained for the repayment of a loan obtained through the Bank of Industry and was subject to strict operational controls. He said withdrawals or transfers to third-party accounts from such accounts were not permitted without the approval of the Account Officer, Regional Manager and Credit Monitoring Team.
However, the commission alleged that the transactions involving the ₦515 million were carried out in violation of these procedures.
“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”, Oyewale said, adding that the transactions were allegedly executed with forged documents and authorised by Nwaobi, who was then responsible for operations at the branch.
The findings have placed the bank’s internal control procedures under scrutiny, particularly the alleged failure to impose the required restrictions on the reactivated account and the circumstances under which the disputed transactions were approved.
The EFCC, however, has not disclosed whether the funds have been recovered or identified the beneficiaries of the alleged transfers.
Ex-Banker Already Facing Trial Over $510,000
The latest investigation comes as Nwaobi is already standing trial over another alleged unauthorised withdrawal involving $510,000 belonging to Lantern Gate Nigeria Limited, another customer of the same bank.
According to the EFCC, the earlier case involved allegations that the money was transferred into six different accounts without the customer’s authorisation.
Nwaobi was arraigned before the Federal High Court in Enugu on November 13, 2025, on a nine-count charge bordering on forgery and criminal diversion of the funds.
The prosecution alleged that he facilitated the transactions without the customer’s approval and allegedly used forged banking documents in the process. He pleaded not guilty to the charges.
The court subsequently granted him bail in the sum of ₦250 million, with three sureties in like sum, subject to conditions imposed by the court.
Oyewale said the commission would charge Nwaobi to court over the alleged ₦515 million diversion as soon as investigations were concluded.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
