Wema Bank Loses N2.9 Billion Over Transfer glitch

Wema Bank Plc is currently battling to recover about N2.9 billion funds allegedly withdrawn from the bank without authorization due to a system glitch.

In a lawsuit filed before the Federal High Court in Lagos, the bank is seeking a preservative order requiring the financial institutions involved to return the funds amounting to N2,906,226,083 that have been traced to accounts within their institutions.

The legal action follows an operational failure in Wema Bank’s core banking system on January 16, 2025, which led to the unauthorized transfer of the funds from customers’ accounts.

According to an affidavit by the bank’s Head of Special Review and Investigation, Kehinde Buari, the system glitch resulted in unintended transactions impacting accounts both within Wema Bank and 26 defendant financial institutions.

In response, Wema Bank said it launched an internal investigation to trace and recover the missing funds. While part of the unauthorized transactions was found within the bank’s own system, a significant portion was discovered in external accounts linked to the defendants.

The bank further disclosed that the total sum of N888,301,598.15 has been salvaged by some of the financial institutions.

Investigations revealed that some recipients attempted to hide or obscure the origin of the funds by transferring them between multiple accounts.

Wema Bank quickly alerted the affected financial institutions about the glitch and the fraudulent transactions, requesting that they freeze the affected accounts.

To support its ongoing recovery efforts, Wema Bank’s internal audit and legal teams compiled reports tracing the movement of the funds, identifying the recipient accounts, and detailing the amounts recovered so far.

The bank also engaged the Nigeria Inter-Bank Settlement System (NIBSS) to track the funds across several financial institutions, which led to further communication with the defendant banks regarding the unauthorized transfers.

Wema Bank is now seeking a court order compelling the 26 financial institutions to return the recovered funds and any additional amounts that can still be traced.

The bank is also requesting that the court direct the institutions to provide details of account holders who received and dissipated the unauthorized funds, to enable law enforcement agencies to carry out further investigations and recover additional funds.

Furthermore, Wema Bank is asking the court to place the affected account holders on the Central Bank of Nigeria’s Credit Risk Management System and other financial watchlists via their Bank Verification Numbers (BVNs) until the full recovery of the stolen funds.

The bank emphasized that, while some of the affected financial institutions have taken initial steps to restrict the unauthorized transactions, a formal court order is essential to ensure full compliance and restitution.

Wema Bank warned that failing to obtain the required legal directives could lead to the release of the frozen funds, undermining their recovery efforts.

TCN reports that this incident is not the first of its kind in Nigeria. In January, Guaranty Trust Bank (GTBank) secured a court order to recover ₦1.9 billion that was mistakenly credited to customer accounts due to a system error in October 2024.

These incidents are raising concerns about how Nigerian banks protect interbank transactions, especially as transaction volumes increase. Some analysts suggest that outdated infrastructure and weak oversight could be contributing to the growing risk of errors and fraud.

ZENITH BANK REWARDS ITS UNICORN WORKFORCE WITH IMPROVED PAY AND PROMOTES SEVERAL—-One of Africa’s leading financial institutions, Zenith Bank has reaffirmed its dedication to employee welfare by announcing the promotion of over 4,000 staff members and implementing salary increases ranging from 20% to 30% across various employee grades.

This bold initiative, under the leadership of Managing Director/CEO Dame Adaora Umeoji, its aimed at boosting staff morale and productivity.

With over 8,000 employees, this significant investment in human capital reflects Zenith Bank’s belief that its workforce is its most valuable asset. The salary adjustments, effective January 1, 2025, aim to reward performance, alleviate financial pressures, and ensure enhanced customer service delivery. Promotions for top management are also expected as part of the bank’s ongoing commitment to excellence and growth.

Dr. Umeoji emphasized the importance of maintaining a motivated workforce, stating that the bank’s dedication to its employees will translate into superior service experiences for customers. She highlighted the organization’s commitment to setting industry benchmarks through innovative solutions and exceptional service delivery.

Zenith Bank’s continued leadership in the Nigerian financial sector is underscored by numerous awards, including Best Bank in Nigeria 2024 by Global Finance and recognition as the Biggest Bank in Nigeria by Tier-1 Capital in 2024 by The Banker. These accolades complement its reputation for innovation, sustainability, and corporate governance.

By prioritizing employee welfare during challenging times, Zenith Bank not only strengthens its internal operations but also sets a standard for other financial institutions in the region, reinforcing its position as a leader in Africa’s banking landscape.

As a major player in Nigeria’s financial landscape, under its managing director/chief executive officer, Adaora Umeoji, the bank has embraced a holistic approach to growth that integrates environmental, social and governance (ESG) principles with its core business objectives.

At the heart of Zenith Bank’s strategy is a focus on buoying economic inclusion, supporting small and medium-sized enterprises (SMEs) and driving technological innovation to enhance customer experiences. The bank’s proactive investments in renewable energy, sports, digital transformation and impactful community initiatives exemplify its dedication to creating long-term value for its stakeholders while addressing global sustainability challenges.

Zenith Bank’s continued success is driven by a combination of strong financial performance and an unwavering commitment to its stakeholders.

Zenith Bank’s growth trajectory is underpinned by a robust expansion strategy. With operations in several countries, including the UK, UAE, China, and most recently, France, the bank continues to expand its geographical footprint.

As usual, the bank’s efforts in 2024 did not unnoticed as the lender clinched several local and international awards in recognition of its outstanding performance.

In 2024, the bank won the Best Bank in Nigeria at the annual Global Finance award in Washington, DC, NY.

The bank also emerged the Biggest Bank in Nigeria by Tier-1 Capital, 2024 by The Banker; Best Commercial Bank, Nigeria 2024 – World Finance; Best Corporate Governance, Nigeria 2024 – World Finance; Most Sustainable Bank, Nigeria 2024 – International Banker; Bank of the Year, 2024 – Business Day; Retail Bank of the Year, 2024 – Business Day; Bank of the Year 2024- The Banker.

It also clinched the Most Responsible Organization in Africa 2024 – SERAS; Best in Gender Equality & Women Empowerment 2024 – SERAS and Best in Transparency & Reporting 2024 – SERAS