Loan Scam Exposed: Nun Microfinance Bank Targets 89 Fake Workers, Names Payroll Officer in Court-Backed Pre-Action Notice
Nun Microfinance Bank Limited has uncovered what appears to be a coordinated loan fraud scheme involving 89 individuals allegedly posing as staff of the Bayelsa State Ministry of Trade and Investment, prompting the bank to issue a court-backed pre-action legal notice ahead of imminent litigation.
Documents obtained by Niger Delta Herald reveal that the pre-action notice was issued pursuant to an order of the Bayelsa State High Court, which granted approval for substituted service after efforts to reach the alleged debtors through conventional means proved unsuccessful.
According to the notice, the 89 individuals allegedly secured loans of various sums from Nun Microfinance Bank by falsely presenting themselves as bona fide civil servants, thereby gaining access to payroll-linked credit facilities meant strictly for verified government employees.
More troubling, the bank alleged that the scheme was actively facilitated from within government, specifically through the payroll officer of the Ministry of Trade and Investment at the material time, identified as Mr.Godbless Julius, who allegedly aided the processing and verification of the loan applications.
The loans have since become non-performing, with repeated repayment demands allegedly ignored, forcing the bank to initiate legal steps to recover depositors’ funds and expose what it described as a deliberate abuse of payroll and banking systems
Background: What Substituted Service Means
In civil litigation, substituted service is a legal procedure approved by the court when a party cannot be served with court processes through normal means, either because the persons cannot be located, are deliberately evading service, or are too numerous to be served individually.
Under such circumstances, the court may order alternative methods of service, including publication in newspapers, posting at strategic locations, or other means deemed sufficient to bring the action to the attention of the affected parties.
Legal analysts say the court’s approval of substituted service in this case suggests that the bank demonstrated reasonable difficulty in reaching the alleged debtors, further reinforcing the seriousness of the claims and the likelihood that litigation has reached an advanced preparatory stage.
Background: Payroll Fraud and Insider Collusion
Payroll fraud is a growing concern within public sector financial management in Nigeria. It typically involves the manipulation of payroll systems by insiders, enabling ineligible individuals to access salaries, benefits, or financial instruments reserved for legitimate public servants.
In loan-related payroll fraud, banks rely on official payroll verification to grant credit facilities. When compromised, such systems can be exploited to obtain loans under false employment identities, leaving financial institutions exposed to default.
Experts note that payroll officers occupy a critical gatekeeping position, and any abuse of that role undermines not only financial institutions but also public confidence in government accountability frameworks.
The pre-action notice, issued through the bank’s legal counsel, serves as a final opportunity for the alleged debtors to regularise their obligations before full court proceedings commence. The bank warned that failure to comply would result in legal action to recover the outstanding sums.
As of the time of filing this report, none of the 89 individuals named in the notice, nor the payroll officer mentioned, had responded publicly to the allegations. Nun Microfinance Bank maintained that it is determined to pursue the matter to its logical conclusion in order to safeguard depositors’ funds and expose systemic abuse.
Observers say the case could become a landmark test of payroll integrity, insider accountability, and financial oversight in Bayelsa State.
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