Sterling Bank is accused by the Kogi Commissioner of opening a N20 billion bailout account without his knowledge.

Asiwaju Idris Asiru, the Kogi State Commissioner for Finance, Budget, and Economic Planning, has accused Sterling Bank of opening a fixed deposit account in the name of the state without his or the state government’s knowledge.
Asiru, who appeared before members of the Kogi State House of Assembly alongside the state’s Accountant General, Jibril Momoh, and Auditor General, Yakubu Okala, to explain the alleged N20 billion recently said to have been forfeited to the Central Bank of Nigeria, said the government was perplexed when it learned that the bailout money meant to upset workers’ salaries was kept in a fixed deposit account to earn interest.
Asiru told the house that the government sent a letter to Sterling Bank, which replied that the government does not have a fixed deposit account.
Members of the legislature took turns grilling the commissioner, asking if the Kogi State Government would sue Sterling Bank for damages and if the money returned to the CBN belonged to the state.
In response to the questions, the Commissioner stated that the outcome of the investigation would determine whether or not they would continue to work with Sterling Bank.
On the aforementioned mirror account, Asiru said the state government wrote to Sterling Bank about the money that would be returned to the CBN as reported, but the bank changed its mind, claiming the account was a liability account.
He claimed that the Kogi government was paying N89 million to settle the bailout debt on a monthly basis and that no fixed account had ever been established.
“No fixed account was ever opened or authorized by anyone, and no N20 billion was ever held anywhere.” The money collected from the bank via CBN 2019 approval has since been used for what it was intended for: salary payments and other overheads. As a state, we are known for our financial transparency, accountability, and efficiency, which has become a culture under Governor Yahaya Bello that cannot be easily tarnished. “Kogi State is in the good books of the World Bank and other international partners for openness, transparency, and accountability, so no amount of misinformation and mischievous assault can fault the records,” said Governor Bello.

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This was despite the fact that the state’s Accountant General, Momoh Jibril, and the state’s Auditor General both stated that the bailout fund was used wisely for the purpose intended.
Sterling Bank’s Branch Manager and his team were absent from the meeting, but they are expected to return at the next legislative session.
The Economic and Financial Crimes Commission (EFCC) has dropped its lawsuit seeking the forfeiture of N20 billion in bailout funds given to the Kogi State government.
Following an ex parte application filed by the EFCC, Tijani Ringim, a Lagos high court judge, frozen the Kogi State account held by Sterling Bank Plc on August 31, 2021.
The money, which was supposed to be used to pay state salaries, was allegedly kept in an interest-bearing account called the ‘Kogi State Salary Bailout Account,’ according to the Commission.
At the resumption of proceedings on Friday, EFCC counsel Kemi Pinheiro filed an application dated October 13 seeking the case to be dismissed.
The return of N19.3 billion to the Central Bank of Nigeria was one of the grounds for the application (CBN).