TajBank Limited, one of the financial service providers in Nigeria has again suffered system glitch in March that resulted in illegal transfers of N957.4 million from the bank.Â
The latest incident comes nearly a year after a previous glitch had caused the loss of N139.6 million from the bank’s system.
In a surprising turn, the bank has now withdrawn its legal action from the Federal High Court in Abuja, where it had been seeking to reverse the unauthorized transfers.
Previously, the court had declined TAJ Bank’s request for interim orders to freeze and restrict debits on accounts held with 26 financial institutions.
According to court filings, the bank officially discontinued the suit on Monday, July 21. It had earlier argued that under the Central Bank of Nigeria’s Regulatory Framework for BVN Operations and Watchlist (2017), the involved institutions were obligated to “freeze, block, and return” the N957,394,438.94 traced to various customer accounts.
TajBank claimed that the funds were “unlawfully withdrawn and transferred from the Plaintiff’s accounts to the customers of the 1st to 26th Defendants as a result of a glitch in the Plaintiff’s server.”
Filed on Wednesday, June 11 (Suit No: FHC/ABJ/CS/1132/2025), the case alleged that customers of the 26 institutions “exploited the system error to deplete funds belonging to TAJ Bank’s clients.”
The bank further warned that unless the court approved its applications to freeze, restrict, and reverse the disputed funds, it would suffer “severe financial loss and irreparable hardship.”
At the hearing on Friday, June 27, TAJ Bank’s legal counsel, Rilwanu Idris, Esq., pleaded with the court to intervene, cautioning that without immediate action, “the money will go.”
However, Justice Muhammad Umar rejected the plea, ruling, “The ex parte application is refused.”
The matter was adjourned to Monday, July 21, but on that date, TAJ Bank’s lawyer, T. O. Nworie, informed the court of the bank’s decision to discontinue the case.
Justice Umar accepted the Notice of Discontinuance dated Thursday, July 17, even though TajBank provided no explanation for withdrawing the lawsuit.
