TAJ Bank Ltd experienced a major system glitch in March, resulting in unauthorized transfers totaling N957.4 million to accounts across 26 banks and fintech platforms.
This incident comes less than a year after a similar technical failure in which N139.6 million was erroneously moved from the bank’s systems.
In a surprising development, TAJ Bank has now withdrawn its legal case from the Federal High Court in Abuja, where it was seeking to recover the funds through a reversal of the unauthorized transactions.
Sources reveal that the court had previously declined the bank’s request for interim freezing orders and post-no-debit instructions against the 26 financial institutions involved.
Court documents reviewed by Nairametrics show that the bank formally discontinued the suit on July 21, 2025. In its filing, TAJ Bank argued that, according to the Central Bank of Nigeria’s 2017 Regulatory Framework for BVN Operations and Watchlist, the institutions had the authority to block, freeze, and return the misdirected N957.4 million.
The bank described the funds as having been “illegally debited and transferred from the Plaintiff’s accounts to the accounts of the customers of the 1st to 26th Defendants” due to the system failure on its servers.
