EFCC arraigns Osaretin Osagiede over alleged N700m microfinance bank fraud

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The Economic and Financial Crimes Commission, EFCC, has arraigned Osaretin Osagiede before the Lagos State High Court in Ikeja over an alleged N700 million fraud. The charge relates to hacking into the systems of Best Start Microfinance Bank.

The defendant was brought to court on Friday, September 4, 2026, and pleaded not guilty to a three-count charge filed by the EFCC's Lagos Zonal Directorate 1.

How the alleged fraud was carried out

Prosecutors accused Osagiede and a second suspect, Zacharia Lorshe, now at large, of carrying out the scheme between March 2025 and January 2026 in Lagos. They allegedly bypassed the two-factor authentication method on Ravenpay user accounts to gain unauthorised access to the bank's data.

The charge reads: "That you Osaretin Osagiede and Zacharia Lorshe (at large), between March, 2025 and January 2026, in Lagos, within the jurisdiction of this court, intentionally caused the Ravenpay user accounts' two-factor authentication (2FA) method to be bypassed, with the intent to secure unauthorised access to the bank's data and committed an offence contrary to Section 387 of the Criminal Law of Lagos State 2011."

A separate count accuses both men of dishonestly receiving the N700 million, knowing or having reason to believe the funds were stolen. That offence is said to breach Sections 411 and 328(1) of the Criminal Law of Lagos State 2011.

Court remands defendant

Prosecution counsel, H.U. Kofarnaisa, asked the court to keep Osagiede in a correctional facility until his bail application could be heard. Justice Olukayode Ogunjobi granted the request and remanded the defendant. The bail hearing is scheduled for September 16, 2026.

The allegations against Osagiede have not been proved in court. He is presumed innocent until a court determines otherwise.

Related data breach probe

In a related development, the Nigeria Data Protection Commission, NDPC, has launched an investigation into an alleged data breach involving Remita Payment Services Ltd., Sterling Bank and other institutions. Babatunde Bamigboye, Head of Legal, Enforcement and Regulations at NDPC, confirmed that a formal notice of investigation was served on April 1.

He said the investigation will look into the types of personal data involved, the nature and extent of the breach, potential risks to affected individuals, and mitigation steps taken where a breach is confirmed.

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