Fresh concerns have emerged over the safety of customer deposits at Lotus Bank following the discovery of an alleged ₦1.5 billion internal fraud involving one of its officials, sparking anxiety among customers and renewed scrutiny of the bank’s internal control systems.
According to court documents, the bank is currently pursuing the recovery of ₦1,552,130,998.85 reportedly diverted through a series of suspicious transactions. The funds have been traced to Abdulkarim Arome Mohammed, a staff member in the bank’s Financial Control Department.
Other individuals named in connection with the alleged fraud include Peter Daniel and Emmas Ocheja Odogwu, who are said to have benefited from the transactions under investigation.
The case, which dates back to May 2024, has continued to expand as more defendants are being joined in the legal proceedings. The most recent addition to the case was reportedly made in February 2026, indicating that the scope of the investigation is still widening.
Industry observers warn that the scandal could significantly dent public confidence in the relatively young financial institution, particularly at a time when Nigerian banking customers are increasingly sensitive to issues surrounding digital security and insider-related fraud.
The matter is currently before the Federal High Court in Lagos and has been adjourned until June 16, 2026, as legal efforts to recover the missing funds continue.
Efforts to obtain an official response from the bank were unsuccessful as of press time. Damilola Kusimo of the bank’s Brand, Marketing and Communications Department did not respond to inquiries.
Lotus Bank commenced commercial operations in 2021 and operates its headquarters in Lagos, positioning itself as a key player in Nigeria’s non-interest banking sector.
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