TAJ Bank Ltd has pulled out of a court case aimed at reversing the unauthorised transfer of N957.4 million, which occurred during a system malfunction in March 2025. The funds had been moved to multiple accounts across 26 banks and fintech firms.
This latest glitch comes a year after the bank reported a similar issue that led to the loss of N139.6 million.
The bank had sought legal redress, asking the Federal High Court in Abuja to order the freezing and reversal of the disputed funds. Court filings indicate that the bank’s request was based on the Central Bank of Nigeria’s (CBN) 2017 Regulatory Framework for Bank Verification (BVN) Operations and Watchlist, which empowers financial institutions to block and return funds traced to fraudulent activity.
TAJ Bank stated that the transfers were unauthorised, caused by a system error, and demanded restitution.
However, in court proceedings dated July 21, 2025, the bank opted to discontinue the lawsuit. Lawyer T.O. Nworie informed the court of the bank’s decision to drop the suit.
“We want to bring to the notice of this Court that in line with the Rules of this Court, we filed a Notice of Discontinuance, and we want the Court to take notice of that. It was filed on 17th July, 2025,” Nworie told the court.
Justice Muhammad Umar accepted the withdrawal, effectively striking out the case.
This isn’t the first legal action involving TAJ Bank over system errors. In 2024, the Federal High Court granted a temporary freezing order on accounts that received N139.6 million due to a similar glitch, with Justice Peter Lifu ordering reversals while safeguarding the involved fintech firms from potential losses.
Industry experts say such cases underscore the importance of secure digital banking systems.
Economist and digital transformation consultant, Dr. Tope Fasoranti, advises that: “Safer banking habits, stronger institutional security frameworks, and deeper collaboration among stakeholders can help financial institutions minimise risks while enabling continued enjoyment of a secure and efficient digital financial system.”
Data from the Nigeria Interbank Settlement System (NIBSS) revealed that Nigerian banks lost over N52.26 billion to fraud in 2024, from over 70,000 reported incidents—a dramatic increase from N11.61 billion in 2023.
Many of these breaches were carried out through electronic platforms, often with insider involvement or social engineering tactics targeting unsuspecting individuals.
