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Nigeria: MTN Bank wrongfully transfers ₦22.3 billion to 8,000 customers


MTN Nigeria’s newly licensed Mobile Money Payment Service Bank Limited (MoMo PSB) has dragged 18 Nigerian banks to court to retrieve ₦22.3 billion (US$53.7 million plus) it mistakenly transferred to 8,000 accounts in those banks.

Court filing in suit No. FHC/L/CS/960/2022 instituted by MTN Mobile Money Bank against 18 banks revealed that the error occurred via a computer glitch.

In an originating summons dated May 30, 2022 and filed before a Federal High Court, MTN’s MoMo Bank is seeking court declaration that the money transferred in error belongs to it and not the customers of the banks.

The MTN Bank is also seeking an order of the court directing the 18 banks to individually account for the sums available in their customer accounts and the sums which have been removed by the customers and are no longer available.

The requests formed part of the reliefs sought in the suit filed by a Senior Advocate of Nigeria, Chief Lotanna Chuka Okoli (SAN) on behalf of MTN MoMo Payment Service Bank Limited.

In an affidavit in support of the originating summons, the Chief Executive Officer (CEO), MoMo PSB Ltd, Anthony Usoro Usoro claimed that MoMo PSB Ltd is the bona fide owner of the aggregate sum of ₦22.3 billion, which is maintained in its MoMo settlement account.

He averred that on or about the 24th day of May, 2022, it was noticed that funds had been erroneously transferred from its settlement account to various accounts maintained by the 18 banks.

Anthony Usoro, in the affidavit, further claimed that a total of about 700,000 transactions were processed with credits made into about 8,000 various accounts in the listed 18 banks.

Upon becoming aware of the incident, he further asserted that MoMo PSB Ltd management responded by immediately shutting down the service to limit the impact and triggered engagement with the banks for the commencement of recovery activities from the accounts of the various beneficiaries in the various banks.

The erroneous transfers, he claimed, were due to the fact that MoMo PSB Ltd suffered a system glitch which led to the said debits.

The MTN’s MoMo Bank’s boss in the affidavit asserted that the 18 banks requested for an order of court mandating them to reverse the credits made into their customers’ account before they can do so, hence, the filing of the suit.

The plaintiff, therefore, prayed the Federal High Court to compel the 18 commercial banks operating in the country to refund about ₦22.3 billion erroneously transferred into their customers’ accounts.

It also asked the court to order the banks to provide information about the customers into whose accounts the said funds were unintentionally paid.

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