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Amarachi Okeh examines the problem of employee theft in Nigerian businesses. Through real-life accounts, she explores how trusted employees secretly siphon profits, crippling businesses and damaging workplace trust
Five years ago, after a long day at the Arena Market in Oshodi, Lagos State, Ifeakachukwu (surname withheld), a major footwear importer, arrived home in Ilupeju. Just as he was about to switch off his car’s ignition, one of his customers called, urgently asking him to come to a location nearby to see something important.
It was around 8 pm when the Ifeakachukwu arrived at the location. What he saw left him stunned and pained at the betrayal.
There, under the cover of darkness, was his trusted salesboy offloading approximately 60 cartons of his goods to sell to the customer, who had just called him, at a ridiculously low price.
As the reality of what was happening set in, everything began to make sense—the dwindling profits and inconsistencies in his accounts were all due to the actions of his trusted employee.
The salesboy, in his early 20s, had worked for Ifeakachukwu for years, recommended by a family member. Unbeknownst to him, the boy had been steadily siphoning goods and profits over time, a quiet theft that would have gone unnoticed if not for the loyal customer who tipped him off.
“My wife and I treated him like family. We rid him well. Every day we used to give him money to buy food and also pocket money. Every time I traveled to China, I’d buy things for him,” the businessman said, his face filled with disappointment.
Ifeakachukwu explained that the boy’s respectful demeanor made him an unlikely suspect. He was the only other person with keys to the warehouse, and the businessman, preoccupied with growing his business, hadn’t been paying close attention to the day-to-day operations.
“We started noticing some lapses in the business but didn’t think it was going to be him. Another major problem we found out was that my customers, who knew the right price and used to buy wholesale goods from me, would go behind my back to buy from the boy.
“He would sell my goods to them at slashed prices and they would pay, without informing me. Isn’t that greed? I found out that for something that is sold for maybe N50,000, he would slash the price down to about N20,000 or N30,000. My business was bleeding and I didn’t know it,” he said.
After the boy was caught red-handed and arrested, the businessman said he confessed to have sold over N10m worth of goods to Ifeakachukwu’s customers at slashed prices, adding that those customers were also arrested but released after refunding the money.
“As of the time he was arrested, we found out that that boy had sold over N10m worth of my goods behind my back to my customers. Those customers too were also arrested and they refunded the money before they were let go.”
Further investigation revealed that the salesboy had been using the stolen money to build a house in his hometown in Anambra and was sending N100,000 monthly to his parents, despite earning only N80,000 per month.
Ifeakachukwu said the suspect was in the process of applying for a visa to an Asian country, adding that only about N2m was recovered from him.
Since then, Ifeakachukwu said he implemented stricter accounting systems and installed CCTV cameras to monitor his warehouses.
This story isn’t unique. Many other business owners have faced similar betrayals. Employee theft, from small retail shops to large corporations, has become a silent epidemic, costing businesses billions annually and eroding trust in the workplace.
Robbed to closure
Over a year now, Victoria (surname withheld), a shoe retailer at the Lagos Island market, has not been to her shop. One of the main reasons was the actions of her salesgirl, who, while Victoria was on bed rest during her pregnancy, systematically ran down her business.
Victoria’s doctor had ordered her to rest, so she had to rely on her salesgirl to manage the store. The girl sent daily updates and photos of sales via WhatsApp, assuring her that everything was running smoothly. However, Victoria knew something was wrong but was powerless to do anything from her bed.
Within the first six months, large sums of money began disappearing. “We once had N80,000 cash in the store but when we returned, we saw only N30,000.
“We asked her if she knew anything about the money, and she began crying and said a woman came to buy shoes and asked her to go get something, but when she returned, the woman had taken part of the money and left. Because it was the first time, and with the way she was crying, we believed her,” Victoria said.
But the thefts continued. Money was found hidden in odd places in the store, and stock kept disappearing without proper accounting. A neighboring shop owner even informed Victoria’s sister that she had seen the salesgirl selling shoes at discount prices meant to avoid losses—but there was no solid proof to act on.
The breaking point came when Victoria made a large investment in new stock, over 100 pairs of ladies’ shoes, but could barely account for N50,000 in sales.
After her recovery, she returned to the shop, only to find that the shoes and the money were gone. Her salesgirl denied everything, even though she was the only one with access to the store.
The experience left Victoria devastated, and she has since been reluctant to continue her business, fearing another betrayal if she hires someone else.
New employee, new wahala
At a commercial-scale farm in Plateau State, Samson Ogbemudia (name changed for privacy reasons), a farm manager, barely 10 days after he employed a new supervisor, Ebuka, in September this year, noticed a sudden drop in fuel efficiency.
Previously, N10,000 worth of fuel would last 13 days, but with Ebuka now in charge, it barely lasted three days. Ebuka claimed the fuel was finished, but Ogbemudia soon realised this was just the beginning of a larger theft.
Ebuka didn’t stop at stealing fuel. He lied, stole and sold some farm produce, and even killed animals on the farm. Suspicious inconsistencies began piling up, especially when bell peppers were being harvested early in the morning, directly against Ogbemudia’s orders.
It was one of those mornings when Ogbemudia by chance caught the supervisor harvesting bell peppers against his orders that he also discovered another tragedy had struck his farm. He was informed by Ebuka, that the two dogs in the farm had suddenly died over night.
“How did this happen? Ogbemudia replied in disbelief. “These dogs welcomed me from the gate yesterday, very active. I went to their cage and met the big one, a Caucasian shepherd, dead and lying in her own vomit and poo. Her eyes were open. The vet came and confirmed that they had died of poisoning. The autopsy confirmed they died of poisoning.”
Ebuka insisted the dogs had been poisoned by their foreign feed.
The farm manager didn’t know the extent of theft that was being committed by the newly employed supervisor until he caught his redhanded by chance.
One evening, while on his way to pick up farm supplies, Ogbemudia felt a strong urge to check the CCTV installed on the farm. He watched as four workers left the farm, only for Ebuka to appear shortly after.
He watched as Ebuka surveyed the area, ensuring no one was around, he made his way to where the galvanised steel used for the greenhouse were kept.
“I had to ask the keke driver to pull over so I could keep watching. I was sure that Ebuka was up to no good,” Ogbemudia recalled. “He kept bringing out those steels, going around to ensure that the coast was clear, and speaking to someone on the phone.
For an hour, he observed as Ebuka cautiously removed the steel, spoke to someone on the phone, and eventually brought two people to load the stolen items onto a motorcycle before speeding off.
Unable to pursue them, Ogbemudia called Ebuka’s brother and asked him some questions. His brother’s response was telling, “I hope Ebuka isn’t the one stealing. He’s been acting strange lately.”
The next morning, confronted with the CCTV evidence, Ebuka admitted to the theft. It was only then that the other workers revealed they had noticed farm tools going missing but hadn’t realised Ebuka was the culprit.
Upon his arrest, it was uncovered that Ebuka had sold items worth over N700,000 for a mere N100,000. The day he was caught marked his fifth theft in less than a week of working on the farm.
“He wasn’t even with us for a full week and had already stolen five times,” Ogbemudia said.
Investigations revealed that Ebuka had poisoned the dogs to prevent them from alerting anyone during his thefts. In total, only N320,000 worth of goods were recovered. It was also discovered that Ebuka was abusing drugs like tramadol, which may have fueled his erratic behaviour.
“He didn’t just steal from us,” Ogbemudia lamented. “He stole my time, my peace of mind, killed my dogs, and even took my AirPods.”
Meanwhile, another newly hired worker was caught stealing habanero and bell peppers. “Farming is tough,” Ogbemudia reflected. “Workers can drain your business through theft.”
In a post on Instagram, the farm managerr shared how theft had plagued many farms, leading some to shut down. Thefts, he said, often stemmed from substance abuse, alcohol, or sheer entitlement.
In 2021, Nairaland, a microblogging site reported how a farm employee named Bamidele was caught stealing live chicken despite being paid a monthly salary. The culprit was handed over to the police and the chickens deposited as exhibits.
Employee theft: A growing concern
Employee theft is a widespread issue, affecting both private businesses and public institutions. It involves workers stealing time, money, goods, or data from their employers.
According to Embroker, a business insurance company, employee theft can stem from feelings of entitlement or dishonesty and takes various forms, including time theft, inventory theft, cash embezzlement, and data theft.
While data specific to Nigeria is scarce, the U.S. Chamber of Commerce estimated that 75% of employees steal from their workplace, with most doing so repeatedly. A 2022 report by the Association of Certified Fraud Examiners highlighted that companies lost $4.7tn to occupational fraud globally.
A Professor of Economics at Covenant University, Philip Alege, explained that low pay, lack of respect, and poor working conditions often drive employee theft.
Alege noted that these forms of theft put pressure on businesses, adding that the businesses might eventually close down due to their high prices and inability to compete in the market.
Addressing employee theft
A human resources expert, Temitope, noted that many employees know their actions are wrong but justify them due to financial struggles, perceived injustices, or the belief that “everyone is doing it.”
The founder of Stanchion TM Consults, Akinsemoyin, said for others, it was a way to get back at the company for whatever grievances they held against it.
To combat this issue, experts recommend fostering a positive work environment, implementing surveillance systems, and encouraging employees to report suspicious behaviour without fear of retaliation. Businesses should also consider rewarding employees who demonstrate integrity, creating a culture of accountability.
The founder of Flying Doctors, Ola Brown, emphasised that employee theft in Nigeria was deeply rooted in a pervasive culture of dishonesty.
“The culture has trickled down from the elite ruling classes of government to the poorest man on the street,” she said. Brown recounted an experience with an employee who couldn’t understand why he was accused of theft, claiming he was “just doing deals.”
To prevent this menace, Akinsemoyin suggested that companies foster a positive culture where employees are valued and engaged which in turn reduces the feeling of resentment.
Furthermore, she advised that businesses should “implement surveillance systems,” but balance this with respect for employee privacy.
Emphasising the encouragement of employees to report suspicious behaviour without fear of retaliation, Akinsemoyin said the move would create a culture of accountability, adding that Organisations should also consider reward programs for employees who demonstrate integrity, fostering a culture of trust and responsibility.
She added that by addressing the root causes of theft and fostering a supportive workplace, organisations could significantly reduce the incidence of employee theft.
