TAJ Bank system glitch causes unauthorized ₦957.4M transfers. Legal case dropped, raising questions about digital security and financial oversight in Nigeria

TAJ Bank system glitch has once again shaken Nigeria’s financial sector after a staggering ₦957.4 million was unintentionally transferred to various accounts in 26 banks and fintech platforms.

Also read: Nigerian court freezes accounts over ₦5.7bn Keystone Bank glitch, unauthorized withdrawals

This marks the second major incident within a year—raising serious concerns over the bank’s system integrity.

In a dramatic twist, TAJ Bank unexpectedly withdrew its legal case seeking a court-ordered reversal of the funds.

The Federal High Court in Abuja had previously declined the bank’s motion for interim freezing and post-no-debit orders against the institutions involved.

Court documents show the bank relied on the Central Bank of Nigeria’s BVN Regulatory Framework to argue that the funds should have been frozen and reversed.

Despite their power-packed arguments and insistence on imminent financial loss, the court refused their ex parte request, instead asking for due process.

Eventually, on July 21, 2025, the bank’s legal team formally discontinued the case leaving many to question the implications of the move. Analysts warn that such glitches expose systemic vulnerabilities in digital banking.

This isn’t the first time. A similar glitch in 2024 caused unauthorized debits totaling ₦139.6 million, for which the bank did secure an interim freezing order.

Experts emphasize that robust institutional frameworks and cross-sector collaboration are vital to combat fraud and ensure financial resilience.

With Nigerian banks reporting fraud losses of over ₦52.26 billion in 2024 alone, mainly through digital platforms, the need for enhanced cybersecurity has never been more urgent.