TAJ Bank system glitch led to a ₦957m loss in March. The bank withdrew its court case seeking reversals from 26 financial institutions and fintechs

TAJ Bank system glitch caused another financial storm in March 2025, resulting in the unauthorised transfer of ₦957.4 million to customers across 26 banks and fintech platforms.

Also read: TAJ Bank system glitch triggers massive ₦957.4m loss, legal setback in shocking court twist

Despite an initial legal push to reverse the debits, the bank surprisingly discontinued its suit at the Federal High Court in Abuja.

This marks the second major technical mishap for the bank in just over a year. In August 2024, a similar glitch triggered the wrongful movement of ₦139.6 million.

Then, the court granted TAJ Bank a favourable ruling to freeze affected accounts and retrieve funds. However, the recent glitch has not met the same legal success.

According to court documents, TAJ Bank filed its case on June 11, 2025, urging the court to compel the 26 financial institutions to freeze and return the funds allegedly traced to customer accounts.

The bank claimed that these accounts had received the funds due to a “system glitch” from its server, affecting transactions on March 9 and 10.

The glitch, the bank argued, enabled unscrupulous account holders to dissipate the funds, and unless the court acted swiftly to stop further withdrawals, the bank would face “untold hardship and dire financial loss.”

Its legal team cited several Central Bank of Nigeria regulations empowering banks to reverse and restrict fraudulent transfers under such circumstances.

But on June 27, 2025, Justice Muhammad Umar declined TAJ Bank’s motion for an interim freezing order, instead directing that all 26 institutions be properly notified before the matter could proceed.

In a shocking turn, during the scheduled hearing on July 21, TAJ Bank’s counsel, T. O. Nworie, informed the court that the bank was no longer pursuing the case.

The money had already been deducted, all the respondents concerned are in business, and if you ask them to produce this money, they will.

“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,” he said.

Justice Umar accepted the withdrawal and struck out the case. No reasons were provided for the bank’s decision to back down.

Industry analysts say the withdrawal raises fresh concerns about financial institution transparency and customer trust.

Some experts speculate that behind-the-scenes negotiations or settlements may have influenced the decision.

The TAJ Bank system glitch issue revives memories of its 2024 crisis, when Justice Peter Lifu ordered the reversal of ₦139.6 million to the bank after unauthorised debits occurred due to another glitch.

In that instance, the bank successfully froze several accounts and recovered some funds, with an undertaking to protect the affected fintech platforms.

This time, however, it seems the bank has opted for silence rather than a prolonged legal battle, despite claiming that nearly ₦1 billion was at stake.

The absence of further details or public explanation from TAJ Bank leaves room for speculation and concern about the robustness of its IT and legal strategy.

As digital banking expands in Nigeria, fintech experts warn that system glitches like these could become more frequent and costly if proactive safeguards are not enforced.

Also read: House of Representatives urges Central Bank to suspend ATM transaction charge increase

A banking compliance consultant noted, “The withdrawal of the suit without resolution means a lot is left to interpretation, especially for stakeholders relying on court precedents and regulatory protection.”

Source: Read more at theheute.com.ng