A teenager, his brother and three others are now in police custody for alleged kidnapping.
Police spokesman Anthony Airhuoyo said the teenage suspect, 16, in connivance with his brother allegedly made a threat phone call to their victim, demanding some money.
He said the suspects were arrested while attempting to withdraw the money at a bank in Benin City.
Other suspects, Andy Olufemi (32) and Eneji Godwin Otoro (25) were apprehended in Suleja, Niger State, where they had gone to withdraw the N18, 000 allegedly paid by their victim.
Also in police custody is Nosa Onaghinor (30), who was arrested while attempting to withdraw N14, 000 said to have been paid into an account of his accomplice.
Airhuoyo said the suspects would be charged to court when investigations are concluded.
In another development, youths suspected to have been involved in the on-going cult crisis in Benin City have been arrested.
The spokesman said policemen launched a clampdown on the warring cult groups in Benin City, adding that a number of suspects were apprehended during raids of flash points.
He advised parents to warn their children and wards against involvement in criminality as the police would deal with anyone caught.