A new generation bank, Lotus Bank, has dragged 45 banks in Nigeria before the Federal High Court in Lagos to recover the sum of N1,133,808,604.31 that some customers fraudulently withdrew from its vault.
Lotus Bank claimed in the suit that the funds were stolen from its vault on July 20, 2024, during a system failure described as a “system glitch.” This failure occurred due to a rollback fix implemented on its E-Bills Pay platform.
The bank further claimed that during the period of system failure, 718 customers successfully executed withdrawals and transfers, despite knowing that they did not have sufficient funds in their accounts with the bank.
The Plaintiff is therefore asking the court to determine whether, based on the Central Bank of Nigeria Guideline No. BPS/FIRGEN/CIR/02/004 of 2015, BPS/FIRGEN/CIR/05/011 of 2018, and Sections 10.2.2-10.2.4, 10.3, and 10.4 of the CBN Regulations, the first to forty-fifth defendants are required to place a lien on the sums in the respective accounts of their customers/account holders.
The bank is also urging the court to decide whether, based on the same Central Bank of Nigeria guidelines and regulations, it is entitled to a refund of all funds illegally transferred into the customers’ accounts with the first to forty-fifth Defendants, as shown in the document marked as Exhibit 1, provided those funds are still available in the customers’ accounts.
The Plaintiff further want the court to determine whether, pursuant to the same Central Bank of Nigeria guidelines and regulations, if the funds in the customers’ accounts are insufficient to cover the amounts illegally transferred, the first to forty-fifth Defendants are mandated to place a lien on any sums transferred illegally into the customers’ accounts until the total amount is fully recovered and repaid to the Plaintiff.
Lotus Bank is also seeking an order directing the first to forty-fifth Defendants to immediately reverse and pay to the Plaintiff the sums that were wrongfully, illegally, and illicitly debited from the Plaintiff and transferred into the customers’ accounts of the first to forty-fifth Defendants.
In an affidavit attached to the suit, the Plaintiff claimed that it reported the system glitch and the resultant Erroneously Retained Credits to the Nigeria Inter-Bank Settlement System Plc (NIBSS), which is the central switch responsible for the interoperability among various entities in the banking sector, including banks, mobile service operators, non-banking financial institutions, payment terminal providers, card acquirers, and their customers.
The bank averred, “However, the Plaintiff did not debit the beneficiaries for these transactions and consequently retained the credited amounts. Therefore, the Plaintiff is entitled to recover the value of the corresponding Refund Amounts from the accounts of these beneficiaries who received the Erroneously Retained Credits.
“I understand that courts provide remedies for wrongs committed, and an order from this Honourable Court is needed to rectify the Plaintiff’s situation, allowing for the recovery of the Erroneously Retained Credits from the accounts of the affected beneficiaries.
“I also recognise that justice in this case demands that the beneficiaries of the Erroneously Retained Credits be prevented from being unjustly enriched under the circumstances.
“The Plaintiff seeks the reliefs outlined in this Originating Summons to impose restrictions on the said accounts and reverse the Erroneously Retained Credits back to the Plaintiff.
“I believe it is in the interest of justice, equity, and fairness for this Honourable Court to grant the relief requested by the Plaintiff.
“I, Gbenga Ojerinde, do solemnly declare that I have sworn this affidavit conscientiously, believing it to be true per the Oaths Act.”
Justice Daniel Osiagor has adjourned the matter to December 1, 2025.
The 45 banks are: Palmpay Payment Services Ltd; Moniepoint Microfinance Bank Ltd; Opay Digital Services Ltd; Guaranty Trust Bank Ltd; Access Bank Plc (formerly Diamond); Zenith Bank Plc; Payment Service Bank Ltd; Wema Bank Plc; United Bank for Africa Plc; Kuda Microfinance Bank Ltd; Fairmoney Microfinance Bank Ltd; Sterling Bank Ltd; Stella’s Digital Bank Ltd; First Bank of Nigeria Ltd; Renmoney Microfinance Bank Ltd;
The others are Unity Bank Plc, First City Monument Bank Ltd, Beststar Microfinance Bank (Nig) Ltd, Globus Bank Ltd, Carbon Microfinance Bank Ltd, Jaiz Bank Plc, VFD Microfinance Bank Ltd, Premium Trust Investment Ltd, Pagatech Ltd, Polaris Bank Plc, Keystone Bank Ltd, Stanbic-IBTC Bank Plc, Stanbic-IBTC (Ease Wallet), TAJ Bank Ltd, Providus Bank Ltd, and Fidelity Bank Plc.
The list includes: Union Bank of Nigeria Plc; Kegow (Chamsmobile Ltd); Ecobank Nigeria Ltd; Smartcash Payment Service Bank Ltd; Amucha Microfinance Bank Ltd; Sparkle Microfinance Bank Ltd; Kredi Money Microfinance Bank Ltd; Alternative Bank Ltd; Gomoney Inc.; Paystack-titan (Paystack Payments Ltd); and Momo Payment Settlement System.
