Wema Bank Loses N2.9 Billion Over Transfer glitch

Published

1 year ago

March 9, 2025

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Wema Bank Plc is currently battling to recover about N2.9 billion funds allegedly withdrawn from the bank without authorization due to a system glitch.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

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UBA, GTCO Lose ₦2.13 billion To Fraudsters Despite Heavy Cybersecurity Investments

Published

2 weeks ago

May 12, 2026

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UBA, GTCO Lose ₦2.13 billion To Fraudsters Despite Heavy Cybersecurity Investments—-Three of Nigeria’s largest financial institutions have reported combined fraud-related losses of approximately ₦2.13 billion in their latest audited financial statements, highlighting the growing threat of cybercrime and electronic banking fraud in the country’s financial sector.

The affected institutions include Access Holdings Plc, Guaranty Trust Holding Company Plc, and United Bank for Africa Plc.

According to details contained in the banks’ 2025 financial reports, fraud incidents linked to the three lenders totalled approximately ₦10.29 billion. However, through recoveries, transaction reversals, and security interventions, the banks were able to prevent or recover about ₦8.16 billion, leaving actual losses at approximately ₦2.13 billion.

Among the banks, Access Holdings recorded the highest direct loss to fraudsters, losing an estimated ₦1.24 billion within the financial year.

United Bank for Africa reported over 26,400 fraud-related incidents, with actual losses totalling approximately ₦621.57 million, while Guaranty Trust Holding Company recorded approximately ₦269.44 million in losses tied to fraudulent activities.

Industry analysts say the figures reflect the increasing sophistication of cybercriminals targeting Nigeria’s rapidly expanding digital banking ecosystem.

Most of the fraud cases were reportedly connected to electronic banking channels, including unauthorised transfers, mobile banking compromise, phishing schemes, identity theft, and other forms of digital payment fraud.

The development comes as Nigerian banks continue to accelerate the country’s transition toward a cashless economy through mobile banking platforms, internet banking services, agency banking networks, and digital payment systems.

Despite the losses, the financial institutions significantly increased investments in technology infrastructure and cybersecurity measures during the year under review.

Collectively, the banks reportedly spent over ₦280 billion on technology upgrades, fraud monitoring systems, customer authentication processes, and transaction security enhancements aimed at reducing cyber threats and protecting customer funds.

Meanwhile, the Central Bank of Nigeria has also intensified regulatory efforts to curb financial fraud across the banking industry.

The apex bank recently introduced stricter compliance measures requiring financial institutions to strengthen fraud detection systems, improve transaction monitoring, and respond more rapidly to suspicious activities and customer complaints.

Financial experts have warned that as digital banking adoption continues to rise across Nigeria, banks and customers alike must remain vigilant against increasingly advanced cybercrime tactics targeting the financial sector

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BREAKING: Dangote Refinery Hikes Petrol And Diesel Prices Amid Economic Strain

Published

3 months ago

March 9, 2026

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BREAKING: Dangote Refinery Hikes Petrol And Diesel Prices Amid Economic Strain—-Dangote Petroleum Refinery has revised its ex-depot prices, increasing the gantry price of Premium Motor Spirit (PMS), or petrol, to ₦1,175 per litre, while Automotive Gas Oil (AGO), commonly known as diesel, has been raised to ₦1,620 per litre.

The latest revision marks the fourth consecutive price review in less than two weeks amid global market volatility, according to a report by Petroleumprice.ng.

Quoting industry sources, the report noted that the new pricing template has been communicated to marketers, following earlier adjustments this month.

Under the revised structure, the ₦1,175 per litre petrol price reflects a significant jump from the previous ₦995 per litre, while diesel has surged sharply from its prior ₦1,430 per litre level, underlining the continued upward trend in domestic fuel pricing.

The development is likely to have a ripple effect across Nigeria’s downstream petroleum market, as depot operators and fuel marketers adjust supply costs in response to the revised prices announced by the country’s largest refining facility.

The refinery had yet to issue an official statement on the development as of the time of filing this report.

Oil prices soared 30 per cent today on fears about supplies from the Middle East, as the US-Israeli war against Iran continued into a second week with no sign of letting up.

Fears grew that the Middle East conflict could last for some time after US President Donald Trump said only the “unconditional surrender” of Iran would end the war.

He added at the weekend that the spike in prices was a “small price to pay” to eliminate Iran’s nuclear threat, reiterating the White House’s insistence that the rise is temporary.

Since the beginning of the war, WTI is up more than 75 per cent and Brent more than 60 per cent.

Attacks on oilfields were reported in southern Iraq and in the northern autonomous Kurdistan region, which forced a US-run oilfield to cease production, while the United Arab Emirates and Kuwait have started reducing output.

That came with maritime traffic in the Strait of Hormuz — through which a fifth of global crude and gas passes — halted since the war began on February 28.

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