Court sends bank MD to five-year jail term over fraud
A Nigerian bank managing director has been sentenced to five years in prison for financial fraud. Get the latest updates on corporate governance, banking oversight, and justice in Nigeria’s financial sector.
By Joyce Idanmuze
Justice Benjamin Lawan Manji of the Adamawa State High Court has sentenced the Managing Director of Bonghe Microfinance Bank, Grace Andreas Karka, to five years’ imprisonment for fraud.
Karka was prosecuted by the Economic and Financial Crimes Commission (EFCC), Gombe Zonal Directorate, on two counts of criminal conspiracy and cheating involving the sum of N32 million.
According to the EFCC, between August 2020 and March 2021, Karka and one Prince Moses Batalu conspired to dishonestly transfer funds totaling N66.7 million from the bank’s account domiciled with First Bank Nigeria Limited without the necessary approval, in violation of Section 61(2) of the Adamawa State Penal Code Law, 2018.Karka pleaded not guilty when she was arraigned on November 11, 2024, leading to a full trial during which the prosecution presented witnesses and tendered documents as evidence.
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Delivering judgment on October 17, 2025, Justice Manji found her guilty on both counts and sentenced her to five years’ imprisonment, with an option of N3 million fine on each count. The sentences are to run concurrently.
The court also ordered Karka to restitute N29.8 million to Bonghe Microfinance Bank.
The EFCC said Karka’s conviction followed findings from a 2021 audit that uncovered unauthorized transfers from the bank’s account to a non-customer, later traced to her and Batalu.
All efforts to recover the diverted funds reportedly failed.
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