Court Seizes N1.2bn Stolen via Bank Glitch

A Federal High Court in Ikoyi, Lagos, has ruled in favor of the Federal Government by ordering the final forfeiture of N1,292,798,746.81, illicitly withdrawn from Sterling Bank Plc due to a technical fault in the bank’s system.
Justice D.I. Dipeolu delivered the judgment following a case presented by the Economic and Financial Crimes Commission (EFCC). The funds were reportedly siphoned off by several individuals who exploited the system error.
The EFCC, acting on a petition from Sterling Bank which initially reported a total loss of N2.5 billion, traced a significant portion of the stolen funds to multiple bank accounts. These included accounts held by M Sharif Inter-Trading and Marketing Company Ltd., Mustapha Abubakar, and Mustapha Sharif Abubakar across UBA, Jaiz Bank, First Bank, and Sterling Bank’s alternative banking platform.

Earlier on March 12, 2025, the court issued an interim forfeiture order, subsequently made public through a national newspaper notice, inviting any opposition. A formal request for permanent forfeiture was then filed and argued by EFCC counsel Hannatu U. KofarNaisa, who stated that the funds were proceeds of unlawful activities and should be confiscated permanently.

The court found merit in the EFCC’s application and ordered the funds to be forfeited to the Federal Government for Sterling Bank’s benefit.
In a similar case in 2024, the Federal High Court in Abuja froze accounts in FairMoney, PalmPay, and Opay following the wrongful crediting of N139.6 million to customers due to a system error at TAJ Bank. The court instructed the reversal of the erroneously credited sums after a motion was filed by the affected bank and its clients.
A financial expert has advised that banks should reinforce their digital security systems and adopt safer practices to minimize such incidents in the future.