In a landmark judgment that has shaken Nigeria’s financial sector, Justice Deinde Dipeolu of the Federal High Court in Lagos has ordered 54 banks to immediately refund a staggering N9,329,322,870 fraudulently transferred from an old-generation bank’s system.

The fraud, which was discovered on March 23, 2025, involved a breach of the unnamed bank’s core banking infrastructure, leading to unauthorized withdrawals from numerous customer accounts.

Investigations revealed that the stolen sum—over N9.3 billion—was strategically split and moved across primary, secondary, and tertiary accounts in 54 Nigerian banks, complicating the trail of recovery.

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Following an ex parte motion filed under suit number FHC/L/CS/629/2025, the court, on April 15, 2025, mandated all 54 banks to:

• Enforce a Post No Debit (PND) restriction on all implicated accounts,
• Begin the immediate return of all available fraudulent funds,
• Disclose complete account details and transaction histories.

Justice Dipeolu’s ruling demanded these measures to ensure accurate tracing and complete restitution of the stolen funds.

Importantly, the court clarified that the order does not affect legitimate customer deposits. It applies strictly to fraudulently transferred funds and any recoverable amounts held within the banking system.

“The stolen funds belong to the plaintiff and not the customers of the respondent banks,” the court ruled, reinforcing the bank’s ownership and right to restitution.

With all implicated banks now under judicial instruction, the financial sector is on high alert. This ruling sets a precedent for how Nigerian courts may handle future cyber theft and digital fraud cases, urging stronger internal controls and transparency.

This ruling underscores the judiciary’s commitment to tackling financial cybercrime and protecting the integrity of Nigeria’s banking system. It also highlights the growing need for robust cybersecurity frameworks and interbank cooperation in fraud recovery efforts.