Unity Bank Is Diverting Electricity Bill Payment In Its Account And Paying N100 Million To Government Official Monthly As Cover Up – ALSTDI

Secrets Reporters

When a river begins to flow in an unusual direction, the elders do not first argue about the current; they ask where the water is coming from. That same spirit of inquiry now sits at the centre of a letter addressed to Unity Bank Plc by the African Leadership Strategy and Transparency Development Initiative (ALSTDI), an organisation that says it is investigating financial irregularities in Nigeria’s banking sector.

Documents obtained by this SecretsReporters show that ALSTDI has formally written to the Managing Director/Chief Executive Officer of Unity Bank Plc requesting clarification on the legality of Account Number 0059145185, identified in the correspondence as “North Central Electricity Account 7,” which the organization says is allegedly domiciled with the bank.

The letter, dated February 17, 2024, states that ALSTDI is a nonpartisan, nonprofit and non-governmental organization registered under the Companies and Allied Matters Act (CAMA), with a mandate to promote transparency, accountability and good governance in the delivery of public goods and services. According to the organization, the request forms part of an ongoing investigation into financial irregularities in the Nigerian banking sector, with findings intended for submission to relevant government institutions.

In the correspondence, ALSTDI said it was seeking clarification regarding the establishment and operation of the account after receiving reports that raised several issues requiring verification.

According to the document, the reports indicate that the account may have been created without proper documentation or government approval, raising questions about compliance with financial regulations governing the management of public sector accounts. The organization also stated that it received reports alleging that the account is used to collect public funds, including Value Added Tax (VAT) payments and electricity remittances, without clear authorisation from relevant government agencies.

The letter further states that reports received by ALSTDI allege that Unity Bank pays between ₦50 million and ₦100 million monthly to senior government officials said to oversee the account. According to the document, the reported payments may constitute financial misconduct, illicit enrichment and abuse of public funds if established. The organization also referenced reports alleging that funds in the account are being traded and diverted, suggesting possible violations of money laundering and financial misappropriation laws.

Citing the Freedom of Information (FOI) Act, 2011, ALSTDI requested that Unity Bank provide detailed information within the statutory period of seven days.

Among the information requested is confirmation that Account Number 0059145185 exists, details of how and when it was established, and whether its creation received the necessary authorization from relevant government authorities. The organization also requested clarification on the purpose of the account, the regulatory framework governing its operation and its role in receiving public funds.

ALSTDI additionally requested full disclosure of the account’s transaction history, including monthly disbursements, beneficiaries of payments and the purposes for which such payments were made. It also sought an explanation of Unity Bank’s internal compliance mechanisms designed to prevent illicit financial flows and ensure compliance with anti-corruption and financial regulations.

The organization grounded its request in several legal provisions. It referenced Section 15(1) of the Money Laundering (Prohibition) Act, 2011, which, according to the letter, prohibits the operation of anonymous or irregular accounts and requires banks to ensure full disclosure in account management. It also cited the Economic and Financial Crimes Commission (Establishment) Act, 2004, which empowers the EFCC to investigate financial crimes relating to public sector mismanagement and illicit transactions, as well as the Bank and Other Financial Institutions Act (BOFIA), 2020, which requires financial institutions to report suspicious transactions and ensure accounts are operated in accordance with national financial laws.

The letter states that because of what it describes as the serious implications of the reports received, ALSTDI is preparing to address the media and submit its findings and recommendations to the National Assembly, the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC) and other relevant agencies for further action.

ALSTDI urged Unity Bank Plc to provide the requested information within the timeframe stipulated by the Freedom of Information Act, stating that the response would assist its report and contribute to transparency in Nigeria’s banking sector. The organization also expressed its expectation that the bank would uphold what it described as the highest standards of ethical banking practices and financial accountability.

The letter was signed by Amb. Ossaieze Nelson, Executive Director of the African Leadership Strategy and Transparency Development Initiative (ALSTDI).