Abuja, July 25, 2025 – TAJ Bank has suffered a fresh system error resulting in the wrongful transfer of ₦957 million and has now withdrawn its earlier legal suit filed to recover the funds from 26 commercial banks and financial technology companies.
The new financial glitch, which occurred amid ongoing efforts to resolve earlier reversals, marks another blow to the non-interest bank’s operational integrity. According to internal sources, the system failure led to erroneous credit alerts to accounts across multiple financial institutions. The bank has since initiated internal investigations and emergency protocols to contain further exposure.
Earlier this year, TAJ Bank filed a reversal suit against 26 banks and fintech platforms to retrieve funds transferred in error. However, in light of the most recent development, the institution has now opted for an out-of-court settlement and has formally discontinued the legal action. The decision, officials say, is aimed at preserving interbank relationships and expediting recovery efforts through collaboration.
A senior TAJ Bank executive who spoke on condition of anonymity noted that the bank is working closely with relevant partners and regulatory bodies, including the Central Bank of Nigeria (CBN), to track and recover the misplaced funds.
“The discontinuation of the lawsuit is a strategic move to facilitate speedy resolution and recovery. Legal battles could drag on for months, while partnership-based processes may yield faster results,” the source said.
This is not the first time Nigerian banks have faced system malfunctions resulting in massive erroneous transactions. Financial experts warn that repeated lapses could undermine public confidence in digital banking infrastructure and highlight the urgent need for enhanced cybersecurity and audit mechanisms.
As of press time, TAJ Bank has yet to release an official public statement detailing the specific causes of the latest glitch or the total number of affected accounts. Meanwhile, customers and stakeholders continue to await reassurance on the bank’s system integrity and commitment to safeguarding depositors’ funds.
