UBA Faces Allegations of Fraudulent Diversion of N3.9 Billion NSEI Funds, Unveils CBN Investigator’s Report

In a startling revelation, CBN Special Investigator Jim Obazee exposes United Bank for Africa (UBA), under the leadership of Tony Elumelu, for alleged fraudulent diversion of N3.9 billion intended for participation in the Nigerian Electricity Market Stabilisation Facility (NSEI). The comprehensive report places the responsibility on UBA’s Managing Directors from 2015 to the present, recommending the reimbursement of the funds in question.The investigation, dating back to 2015 when the CBN, under former Governor Godwin Emefiele, established the Special Purpose Vehicle NESI Stabilisation Strategy Limited, reveals a lack of policy directive or approval from then-President Goodluck Jonathan.

Initially sanctioned as a limited guarantee fund to address electricity sector challenges over a decade, the fund encountered unforeseen hurdles in its realization.

According to the Obazee Report, UBA stands accused, among the selected commercial banks, of surreptitiously absconding with N3.9 billion, disregarding NESI provisions. The report contends that UBA failed to implement proposals aligned with the initial purpose, making it the bank implicated in the highest amount of the alleged fraudulent activity.

The report specifically accuses UBA of manipulation, asserting that the bank unlawfully arranged and received a share of the 1.9535% designated for participation in the Nigerian Electricity Market Stabilisation Facility. External Auditor’s reports, integral to NESI Stabilisation Strategy Limited’s Financial Statements, corroborate payments to UBA proportional to its contribution to NEMSF disbursement, substantiating the allegations of fraudulent activities. The CBN investigator calls for a thorough examination of UBA’s actions and the prompt return of the misappropriated funds.