TAJ Bank Ltd has officially withdrawn its lawsuit filed at the Federal High Court in Abuja over a major system malfunction that led to the unauthorized transfer of ₦957.4 million across 26 banks and fintech platforms in March.
Newsonspot reports that this marks the second time in less than a year the bank has suffered a system-related breach. In an earlier incident, ₦139.6 million was also erroneously moved due to a similar technical failure.
According to court filings obtained by Nairametrics, TAJ Bank discontinued the case on July 21, 2025, after the court declined its initial request for interim freezing orders and post-no-debit instructions against the 26 financial institutions involved.
In its motion, TAJ Bank stated that the transferred funds were “illegally debited and transferred from the Plaintiff’s accounts to the accounts of the customers of the 1st to 26th Defendants” as a result of a server glitch.
The bank argued that, under the Central Bank of Nigeria’s 2017 Regulatory Framework for BVN Operations and Watchlist, the institutions had the authority to trace, freeze, and return the misdirected funds.
Despite the magnitude of the loss, the bank’s reasons for halting the legal pursuit remain unclear.
