ABUJA, Nigeria – TAJ Bank Ltd has abruptly withdrawn its lawsuit seeking to recover N957.4 million lost in a March 2025 system glitch that triggered unauthorized transfers to accounts across 26 banks and fintech platforms.
This marks the bank’s second major technical failure in under two years, following a N139.6 million incident in 2024. Despite initially pleading for court intervention, TAJ Bank mysteriously discontinued its case on July 21, 2025, leaving questions unanswered.
How the Glitch Unfolded
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On March 9–10, 2025, a server failure at TAJ Bank illegally transferred funds to customers of other financial institutions.
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The bank rushed to court in June, demanding a freeze on recipient accounts under CBN’s BVN watchlist policy.
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Justice Muhammad Umar rejected TAJ’s emergency freeze request, ordering due process instead.
Why the Case Collapsed
TAJ Bank’s legal team initially argued:
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Recipient accounts showed “dishonest exploitation” of the glitch.
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Without reversal, the bank faced “untold financial hardship.”
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CBN guidelines empowered institutions to recover such funds.
Yet, weeks later, lawyers quietly filed for discontinuance—no explanations given. Legal experts speculate potential settlements or evidence gaps.
A Recurring Problem
This mirrors TAJ Bank’s 2024 glitch, where courts ordered FairMoney MFB to reverse N139.6 million. That time, Justice Peter Lifu granted an interim freeze—unlike in 2025.
The Bigger Picture
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Nigerian bank fraud hit N52.26 billion in 2024 (NIBSS data)—a 350% spike from 2023.
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Digital economist Dr. Tope Fasoranti warns: “Stronger security frameworks and stakeholder collaboration are non-negotiable.”
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Glitch-related fraud often involves insider collusion or social engineering (fake calls, malware).
Key Takeaways:
TAJ Bank dropped efforts to reclaim N957m post-glitch—reasons unclear.
Courts are inconsistent in handling tech-based banking disputes.
Nigeria’s fraud epidemic worsens, with electronic channels most vulnerable.
Experts urge preventive measures: customer education, tighter IT safeguards.
