Guaranty Trust Bank (GTBank), one of Nigeria’s leading tier-1 banks with a market capitalization of ₦1.68 trillion, has secured a court order to recover ₦1.9 billion that was mistakenly credited to customer accounts between October 28 and 29, 2024. The error occurred when the bank processed duplicate transactions while handling unapplied NIP (NIBSS Instant Payment) inflows.
Following the discovery of the mistake, GTBank initiated an internal investigation, which revealed that some of the erroneously credited funds had been transferred to other banks. In response, the bank sought a court order to place restrictions on accounts that had received duplicate funds.
On Thursday, Justice F.N. Ogazi of the Federal High Court, Lagos, granted the request, allowing GTBank to recover the misplaced funds. The order has since been served to the affected banks, facilitating the return of the funds.
GTBank has yet to issue a public comment on the matter. The error comes amid ongoing challenges for the bank related to its switch from its previous core banking system, Basis, to Finacle, a popular banking software developed by Infosys. The migration, which began in September 2024, was intended to improve operational efficiency and enhance the customer experience. However, the transition was marred by significant disruptions, including erroneous transaction alerts and prolonged service outages, which caused considerable frustration among customers.
The disruptions were widely discussed on social media platforms like X, where GTBank customers expressed their dissatisfaction with the instability of the bank’s services. In November 2024, the bank issued a public apology for the inconvenience caused.
Although the court documents do not directly link the duplicate transactions to the core banking migration, the broader context of technology challenges in the banking sector remains relevant. In 2024, several commercial banks undertook major software upgrades, leading to significant customer service disruptions. The Central Bank of Nigeria (CBN) subsequently issued a directive requiring banks to obtain regulatory approval before initiating such upgrades in the future.
GTBank’s recovery efforts and the regulatory fallout from this incident highlight the ongoing challenges in Nigeria’s banking industry as it adapts to evolving technology.
