E-Financial
Interswitch System Glitch: Court Orders Freezing of Accounts in 54 Banks
Justice Peter Lifu (JP) of a Federal High Court sitting in Lagos has granted an order freezing some accounts in about 54 financial institutions in the country where alleged funds from Interswitch accounts were moved to various accounts domiciled in the named banks.
Some of the banks affected by the freezing order are Access Bank PLC, GTBank PLC, First Bank of Nigeria, Fidelity Bank PLC, Globus Bank, Providus Bank, Keystone Bank, FCMB, Sterling Bank, SunTrust Bank, Ecobank, among other financial institutions in the country.
The freezing order was sequel to an ex-parte application filed by Mr E.A Okorie, counsel to Interswitch Nigeria Limited, seeking the order of court directing the banks and other financial institutions to freeze, place a lien or post no debit on some accounts domiciled in these institutions.
The plaintiff, Interswitch, is seeking the freezing order so as to prevent the dissipation of a huge amount of money that was illegally moved from its account into various accounts in the different financial institutions due to a glitch in its server.
In particular, the applicant is seeking the order of the court freezing the accounts of EARTHOLEUM NETWORKS LIMITED to the extent of the sums illegally received following the system glitch in the Plaintiffs server into the accounts of the 8th defendant, EARTHOLEUM NETWORKS LIMITED.
The plaintiff prayed the court for an order of Interim Mareva Injunction mandating all the defendants to comply with the Central Bank Guidelines No. BPS/DIR/GEN/CIR/02/004 of 2015 and the Central Bank of Nigeria’s Regulatory Framework for Banking Verification (BVN) Operations and Watchlist for the Nigerian Banking Industry, October 2017 by blocking, freezing, placing a lien and/or placing a “Post No Debit” restriction on the affected accounts domiciled with the aforementioned banks and other financial institutions pending the determination of the substantive suit.
Interswitch Nigeria Limited further sought for an order of interim mareva injunction mandating the respondents to Freeze, place a Lien and Post No Debit on any and all accounts belonging to and in the name of the 8th Defendant EARTHOLEUM NETWORKS LIMITED to the extent of the sums illegally received (following the system glitch in the Plaintiffs server) into the said accounts pending the hearing of the substantive application.
The plaintiff also asked the court for an order directing the defendants to disclose on oath to the court within 7 days of service of the order of court, the amounts standing in credit in the respective accounts of the 1st to 54th Defendants’ customers accounts domiciled with them from 19th of October 2023 to date.
AN ORDER directing the respondents to disclose on cath to this honourable Court within 7 days of service of the order of court, the details of the amounts standing as credit balance in the respective beneficiaries accounts of the 1st, 9th, 12th, 13th, 14th, 41st and 48th defendants’ customers/Account holders listed in a document marked EXHIBIT C attached herewith and domiciled with the 1st, 9th, 12th, 13th, 14th, 41st and 48th defendants from the 9th of May 2022 to date.
After listening to tE. A. Okorie, the plaintiff counsel, Justice Peter Lifu (JP), trial Judge, granted an order mandating the defendants to comply with the Central Bank Guidelines No. BPS/DIR/GEN/CIR/02/004 of 2015 and the Central Bank of Nigeria’s Regulatory Framework for Banking Verification (BVN) Operations and Watchlist for the Nigerian Banking Industry, October 2017 by blocking, freezing, placing a lien and/or placing a “Post No Debit” restriction on the affected accounts aforesaid to the extent of the sums illegally received (following the system glitch in the Plaintiffs server) into the respective Bank accounts of several customers who are listed in a document attached to the court papers marked ‘ Exhibits A’ pending the determination of the substantive suit.
The defendants in the suit are:
ACCESS BANK PLC, BAINES CREDIT MICROFINANCE BANK LTD, BANK OF INDUSTRY, BLURIDGE MICROFINANCE BANK, BRANCH INTERNATIONAL FINANCIAL SERVICE, CREDIT DIRECT LIMITED, ECOBANK PLC, EARTHOLFUM NETWORKS, FAIRMONEY MICROFINANCE BANK, FEWCHORE FINANCE COMPANY LTD, FIDELITY BANK PLC, FIRST CITY MONUMENT BANK PLC, FIRST BANK OF NIGERIA LIMITED, GLOBUS BANK PLC, GUARANTY TRUST BANK PLC, HASAL MICROFINANCE BANK LTD, HERITAGE BANK PLC, INFINITY TRUST MORTGAGE, IZON MICROFINANCE BANK LTD, JAIZ BANK PLC, KEYSTONE BANK PLC,
KUDA MICROFINANCE BANK LTD, DE -L.A FAYETTEE MICROFINANCE BANK LTD , L APO MICROFINANCE BANK, LINKS MICROFINANCE BANK, LOTUS BANK PLC, MIM FINANCE COMPANY LTD, NEW EDGE FINANCE, NIGERIAN NAVY MICROFINANCE BANK, NIRSAL MICROFINANCE BANK, OPAY DIGITAL SERVICES, PAGATECH LIMITED, PALMPAY LIMITED, PARALIEX BANK PLC, POLARIS BANK PLC, PROVIDES BANK PLC, Ceremony MICROFINANCE BANK LIMITED, ROLFZ MICROFINANCE BANK LIMITED, SMART CASH PAYMENT SERVICES BANK LIMITED, SPARKLE MICROFINANCE BANK LIMITED, STANBIC IBTC BANK PLC, STANDARD CHARTERED BANK PLC, STERLING BANK PLC, SUNTRUST BANK PLC, TAJ BANK LIMITED, TANGERINE MONEY MICROFINANCE BANK, TOL CHIGOLD MICROFINANCE BANK LTD, UNION BANK OF NIGERIA PLC, UNITED BANK FOR AFRICA PLC, UNITY BANK PLC , VALE FINANCE LIMITED , VFD MICROFINANCE BANK , WEMA BANK PLC and ZENITH BANK PLC.
Union Bank of Nigeria Plc is facing a major financial scandal after hackers reportedly siphoned N9.3 billion from multiple customer accounts.
The breach, which occurred on March 23, 2025, has led to an urgent legal battle as the bank seeks to freeze accounts suspected of receiving the stolen funds.
Court filings reveal that the cybercriminals exploited a critical system glitch, discreetly transferring the money in small amounts across 54 financial institutions to evade detection.
Oluwasegun Falola, Union Bank’s Head of E-Fraud Investigations, confirmed that tracking the transactions has been challenging due to their fragmented nature.
Acting swiftly, the bank filed a lawsuit (FHC/L/CS/629/2025) at the Federal High Court in Lagos, requesting an emergency order to halt further withdrawals. On April 2, 2025, the bank’s legal team, led by A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being actively moved—suggesting an ongoing laundering operation.
In response, Justice Deinde Dipeolu granted a Post No Debit (PND) order, freezing all implicated accounts pending further investigation.
This crisis comes just 15 months after the Central Bank of Nigeria (CBN) dissolved Union Bank’s former board over governance failures. Under the leadership of MD Yetunde Oni, the bank now faces intense scrutiny as customers demand accountability.
The Central Bank of Nigeria (CBN) has announced a comprehensive review of documentation requirements for transactions processed through the Pan-African Payment and Settlement System (PAPSS), aimed at enhancing intra-African trade, promoting financial inclusion, and improving operational efficiency for cross-border payments within Africa.
In a press release issued on Monday, the CBN outlined key updates to the documentation framework in a circular addressed to Authorised Dealer Banks (ADBs) and the general public.
The revised guidelines are part of the CBN’s ongoing efforts to streamline processes and support seamless financial transactions across the continent.
Under the new framework, individuals conducting low-value transactions up to USD 2,000 equivalent in naira and corporates transacting up to USD 5,000 equivalent in naira can now rely on basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) documents already provided to their ADBs.
This measure simplifies compliance requirements for smaller transactions and reduces administrative burdens.
For transactions exceeding the specified thresholds, parties must comply with the full documentation requirements as outlined in the CBN Foreign Exchange Manual and related circulars to ensure regulatory compliance.
Applicants are also responsible for ensuring that all necessary regulatory documents are available to facilitate the clearance of goods as mandated by relevant government agencies.
The new policy permits ADBs to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, eliminating the previous requirement to obtain forex directly from the CBN.
Additionally, all export proceeds repatriated via PAPSS must be certified by the relevant processing banks to promote transparency and regulatory adherence.
The CBN urged all ADBs to adopt PAPSS and commence originating transactions in accordance with the updated policy.
Exporters, importers, and individuals were encouraged to familiarize themselves with the new requirements and leverage PAPSS for efficient cross-border transactions across Africa.
The Federal Inland Revenue Service has directed banks across the country to immediately identify and close any tax and levy collection accounts not authorised under its TaxPro Max platform.
The directive, aimed at promoting transparency and ensuring uniformity in tax collection, was disclosed in a public notice titled “Directive to close unauthorised FIRS tax collection accounts,” issued by the FIRS Chairman, Zacch Adedeji, and circulated to journalists on Monday by his Special Adviser on Media, Dare Adekanmbi.
According to the notice, all tax and levy collections must now be processed exclusively through assessments generated on the TaxPro Max system.
The FIRS warned that all banks participating in its collection, remittance, and reconciliation scheme must comply without delay, discontinue the use of unauthorised accounts, and ensure only transactions initiated from the TaxPro Max platform are processed.
“We count on your cooperation to ensure a smooth transition to this centralised system, thereby contributing to a more transparent and efficient tax collection process,” the agency stated.
Developed locally, the TaxPro Max platform facilitates key tax activities such as taxpayer registration, filing of returns, payment processing, and the issuance of tax clearance certificates.
It was introduced to streamline tax administration and support the FIRS’s broader digitalisation agenda.
The agency also urged taxpayers and stakeholders seeking clarification to contact its Revenue Accounting and Refund Department.
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