By Salim Abubakar
January 3, 2025
Guaranty Trust Bank (GTBank), one of Nigeria’s leading tier-1 banks with a market valuation of ₦1.68 trillion, has obtained a court order to recover ₦1.9 billion erroneously credited to customer accounts in late October 2024. The duplicate transactions occurred during the processing of unapplied NIP (NIBSS Instant Payment) inflows between October 28 and 29, 2024.
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Error Discovery and Legal Action
An internal investigation by GTBank revealed that some of the mistakenly credited funds had already been transferred to other banks. To address this, GTBank sought a court injunction to freeze accounts that received duplicate funds.
Justice F.N. Ogazi of the Federal High Court, Lagos, granted the order, which has since been served to the receiving banks. This paves the way for the recovery of the funds. GTBank has yet to issue an official statement on the matter.
Breakdown of Erroneous Transactions
| Details | Information |
|---|---|
| Incident Date | October 28–29, 2024 |
| Amount Mistakenly Credited | ₦1.9 billion |
| System Migration | From Basis to Finacle |
| Court Order Granted By | Justice F.N. Ogazi |
| Receiving Banks Notified | Yes |
| Public Apology Issued | November 2024 |
Challenges with Core Banking Migration
This incident occurred shortly after GTBank transitioned its core banking system from Basis to Finacle in September 2024. The switch, designed to improve operational efficiency and enhance customer experience, was marred by significant service disruptions. Customers reported erroneous transaction alerts and unstable banking channels for weeks following the migration.
The migration challenges sparked outrage on social media platforms such as X, with customers voicing their frustrations over the bank’s perceived silence. GTBank eventually issued a public apology in November 2024.
READ ALSO: How Banks Make Money and the Top 10 Most Profitable Banks in Nigeria (2024)
While the court documents did not explicitly link the erroneous transactions to the core banking migration, experts have highlighted the increasing challenges faced by banks in transitioning to new systems. At least four Nigerian banks experienced similar disruptions in 2024, prompting a directive from the Central Bank of Nigeria mandating regulatory approval for future upgrades.
Regulatory Implications
The disruption highlights the critical need for thorough testing and planning before major system migrations in the banking sector. To mitigate future occurrences, the Central Bank of Nigeria has introduced stricter regulatory measures requiring banks to obtain approval prior to commencing core system upgrades.
This development underscores the growing pains associated with digital transformation in the financial industry and serves as a cautionary tale for other banks planning similar transitions.
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