Nigeria Inter-Bank Settlement System Plc (NIBSS) has approached the Federal High Court in Lagos seeking urgent orders to recover ₦13.66 billion (about $8.7 million) allegedly lost following a technical glitch on its instant payment platform.
The agency is suing 19 commercial and microfinance banks, seeking court approval to impose Post No Debit restrictions and freeze accounts linked to the disputed transactions to prevent further loss of funds.
According to court filings, the incident occurred on 6 September 2024, when a fault in NIBSS’s Nigeria Instant Payment engine triggered what it described as “unexpected behaviour,” resulting in transfers being credited without corresponding debit instructions, a phenomenon known in banking operations as “dry posting.”
The alleged irregular transactions reportedly continued between 6 and 9 September 2024, affecting 176 accounts across the respondent banks.
NIBSS is seeking orders to place liens on accounts linked to beneficiaries’ Bank Verification Numbers, place them on a watchlist, and reverse traced funds.
NIBSS stated it promptly alerted the banks after discovering the anomaly and requested immediate account restrictions. However, the banks reportedly insisted that only a court order could justify freezing customer accounts.
The case highlights growing concerns around payment infrastructure vulnerabilities in Nigeria’s rapidly expanding digital banking ecosystem.
Similar payment system glitches have been recorded previously within Nigeria’s financial sector, including isolated incidents affecting interbank transfers and fintech platforms, often attributed to system upgrades or integration errors.
In most cases, liability is typically resolved through joint investigations between operators and regulators such as the Central Bank of Nigeria, with affected funds either reversed or temporarily frozen pending reconciliation.
NIBSS argues that immediate court intervention is necessary to prevent potential fund dissipation and ensure full recovery of the disputed amount while investigations continue.
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