Jun 30, 2026

EFCC Arraigns Businessman, Firm Over N337m Lotus Bank Fraud

By Afolabi Olaiya Idowu in news

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Lagos, Nigeria — In a fresh blow to Nigeria’s banking sector, the Economic and Financial Crimes Commission (EFCC) has arraigned Abdulkarim Muhammad Arome and his company, Cresco Oil and Gas Limited, before a Lagos High Court for allegedly defrauding Lotus Bank of N336,993,863.35 (approximately $224,000 at current rates).

The defendants appeared on Monday, June 29, 2026, before Justice O. A. Okunuga at the Ikeja High Court on an amended three-count charge bordering on conspiracy, stealing, and retention of proceeds of criminal conduct. Arome’s co-conspirator, Peter Daniels Prosper, remains at large.

According to the EFCC, the offences occurred between 2022 and 2023 in Lagos. Prosecutors allege that Arome, through his company, conspired with others to steal funds belonging to Lotus Bank and dishonestly converted the substantial sum to their use.

The charges cite violations of Sections 409 and 285 of the Criminal Law of Lagos State (2015 and 2011) and Section 17(a) and (b) of the EFCC (Establishment) Act, 2004. Specific counts detail a conspiracy to steal bank property and the dishonest conversion of the exact sum of N336,993,863.35.

This case is not isolated. Court documents and reports indicate Lotus Bank previously suffered significant internal fraud linked to Arome (also referred to as Abdulkarim Arome Mohammed), a former staff member in the Financial Control Department.

He allegedly exploited system privileges to divert Mudarabah profits (a key non-interest banking mechanism) to unauthorized accounts, including those tied to family members.

Earlier incidents reportedly involved over N336 million in one scheme and broader losses exceeding N1.1 billion to N1.5 billion from system glitches and fraud within a short period.

The EFCC’s Lagos Zonal Directorate 1 in Ikoyi led the investigation and prosecution.

Both Arome and his company pleaded not guilty to all charges. Prosecuting counsel E. S. Okongwu urged the court to remand the defendants in a correctional facility pending trial. Defence counsel indicated plans to file bail applications and sought a short adjournment.

Justice Okunuga ordered the defendants remanded at Ikoyi Correctional Centre and adjourned the matter to October 7, 2026, for the commencement of trial.

A mugshot released by the EFCC shows Arome in custody, underscoring the agency’s ongoing commitment to high-profile financial crime prosecutions.

This arraignment highlights persistent vulnerabilities in Nigeria’s financial institutions, particularly non-interest (Islamic) banks like Lotus Bank, which manage funds through profit-sharing models sensitive to internal controls.

Multiple fraud incidents at the bank in recent years raise questions about oversight, employee vetting, and cybersecurity in the sector.

For Lotus Bank, already navigating recovery efforts and legal actions against other institutions over related glitches, the case underscores the human element in financial crimes—insiders with privileged access can inflict outsized damage.

The EFCC’s swift action reflects its mandate amid public pressure for accountability in economic crimes. With trial set for October, the proceedings will test the strength of the evidence, including digital trails and bank records likely central to proving intent and conversion of funds.

As Nigeria grapples with economic pressures, cases like this serve as both deterrent and reminder: financial institutions must bolster internal safeguards, while anti-graft agencies continue pursuing justice through the courts.

The outcome could influence investor confidence in the sector and set precedents for similar insider fraud prosecutions.

The EFCC has not released further details on the exact mechanics of the alleged diversion or recovered assets at this stage. Developments will be monitored as the case progresses.