Title: First Bank vs Broron Oil: Inside the Explosive Financial Scandal Shaking Nigeria’s Banking Sector
A major financial dispute has erupted between First Bank of Nigeria Limited and Broron Oil and Gas Company Limited, escalating into a legal and regulatory storm that now includes lawsuits, allegations of fraudulent banking practices, and unresolved directives from regulatory authorities. At the center of the controversy is human rights lawyer Barrister Mike Igini, who is being sued personally by First Bank after submitting petitions exposing alleged unethical practices. The unfolding events have raised serious questions about transparency, customer protection, and the integrity of Nigeria’s financial system.
How the Dispute Began
The conflict began when Broron Oil and Gas reported massive financial losses allegedly caused by First Bank’s mismanagement of the company’s accounts. Broron accused the bank of unauthorised withdrawals, diversion of loan facilities, withholding approved foreign exchange allocations, and forging transfer mandates using fake company letterheads. These complaints prompted the company to brief Barrister Igini, who subsequently petitioned the Central Bank of Nigeria and the Economic and Financial Crimes Commission.
CBN’s Findings and the Unresolved Refund Order
Following the petitions, the Central Bank conducted a three-day technical session with both parties in April 2022. The session reportedly uncovered several questionable transactions involving millions of dollars and naira withdrawn from Broron’s accounts without clear justification. The CBN directed First Bank to refund the funds, but this directive has not been enforced since 2022, leaving the company without redress and raising concerns about the implementation of regulatory decisions.
Major Allegations Involving Forex and Loan Misuse
One of the biggest issues in the dispute is a $26.7 million foreign exchange application that Broron submitted through First Bank. Evidence showed that the forex approval was granted directly to Broron, not the bank. However, First Bank allegedly claimed ownership of the funds and withdrew over $32 million from Broron’s accounts based on that claim. Another allegation involves a $9.2 million loan from the Bank of Industry, which First Bank allegedly withheld while using Broron’s dollar deposits to pay interest on the loan for more than two years. These claims triggered further interest from investigators and deepened the scrutiny on the bank’s operations.
Why First Bank Is Suing Mike Igini Personally
After continued petitions highlighting the alleged misconduct, First Bank filed a lawsuit against Igini personally rather than Broron Oil and Gas. The bank argued that his petitions interfered with an existing court case involving Broron. However, Igini maintained that he was never informed of such a suit and insisted that a lawyer seeking redress on behalf of a client cannot be considered a legal threat. He also noted that the EFCC’s ongoing investigations involve criminal matters beyond civil court jurisdiction.
Ongoing Court Battles and What Happens Next
In addition to the unresolved regulatory directives, First Bank has lodged a fresh lawsuit before the Lagos State High Court. During the most recent hearing, Igini’s legal team filed a Preliminary Objection asking the court to dismiss the suit with punitive costs. The case has been adjourned to February 4, 2026, for ruling. Meanwhile, investigations involving First Bank and the CBN continue as authorities examine claims of account manipulation, diversion of funds, and forged transfer mandates. With Broron recently winning a major oil block under the current administration, the stakes in this dispute are now higher than ever.
The conflict between First Bank and Broron Oil has evolved into one of the most significant financial scandals in recent years. With allegations ranging from account forgery to misappropriated forex funds, combined with lawsuits targeting both corporate and individual players, the case is likely to shape conversations around banking transparency and regulatory enforcement in Nigeria. As the courts prepare to deliver key rulings and investigators intensify their efforts, the coming months may reveal even deeper layers of the controversy.
