NIBSS
The Nigeria Inter-Bank Settlement System Plc (NIBSS) has urged the Federal High Court in Lagos to grant an order freezing 176 bank accounts linked to unauthorised transfers totalling N13.66 billion, arising from a glitch on its payment platform.
NIBSS, in the Suit before Justice Daniel Osiagor, is seeking an order directing 19 financial institutions in the country to immediately impose Post No Debit (PND) restrictions on accounts believed to have received funds from the disputed transactions.
The applicant is also urging the court to compel the banks to place liens on accounts linked to the beneficiaries’ Bank Verification Numbers (BVNs), add these BVNs to a watchlist pending recovery efforts, and reverse all funds traced to the affected accounts.
In an affidavit filed in support of the suit, NIBSS averred that the incident occurred on September 6, 2024, when a malfunction on the Nigeria Instant Payment (NIP) platform enabled unauthorised transfers into customer accounts at the respondent banks.
It claimed that the glitch caused an “unexpected behaviour” that allowed some customers to receive funds without corresponding debit instructions from their original accounts, a situation known as “dry posting.”
Court documents show that the disputed transactions happened between September 6 and September 9, 2024, mainly over the weekend.
NIBSS identified 176 accounts across the affected banks involved in the transfers, with a total exposure of N13.66 billion.
After discovering the incident, NIBSS promptly contacted the banks to request restrictions, but claims they insisted on a court order before acting.
The applicant argued that without urgent freezing, there is a high risk that the funds could be withdrawn or transferred, hindering recovery efforts.
Citing the Central Bank of Nigeria’s 2018 Regulation on Instant (Inter-bank) Electronic Funds Transfer Services, especially Clause 10, NIBSS states it has the authority to seek assistance from banks to recover disputed transfers.
It maintained that the court’s orders are essential to recover the allegedly unauthorised transfers and urged the court to grant its application in the interest of justice.
The listed banks include Access Bank Plc, Ecobank Nigeria Limited, FairMoney Microfinance Bank, First City Monument Bank Ltd, Fidelity Bank Plc, Globus Bank, Guaranty Trust Bank, Kuda Microfinance Bank, Lotus Bank Limited, Moniepoint Microfinance Bank, Parallex Bank, Polaris Bank Limited, Providus Bank Limited, Sterling Bank Ltd, TAJ Bank, Titan Trust Bank, United Bank for Africa Plc, Wema Bank Plc, and Zenith Bank Plc.
Justice Osiagor has adjourned the matter till July 17 for hearing.
