In a landmark decision that underscores the growing threat of cybercrime in Nigeria’s banking sector, the Federal High Court sitting in Lagos has ordered 54 commercial banks to refund the sum of N9.3 billion fraudulently siphoned from an old-generation bank by hackers.
Justice Deinde Dipeolu delivered the ruling on April 15, 2025, following a complex cyberattack that struck the unnamed financial institution on March 23, 2025. The hackers, employing sophisticated techniques, infiltrated the bank’s internal network and illicitly diverted funds into hundreds of recipient accounts spread across multiple banks in the country.
The court’s decision came after urgent legal proceedings initiated by the affected bank, which sought immediate action to trace, restrict, and retrieve the stolen funds. Acting swiftly, the court granted an ex parte motion, ordering all 54 identified banks to enforce a “Post No Debit” (PND) restriction on the suspected accounts.
According to the court's ruling, the PND restriction is to remain in effect pending the conclusion of the investigation and retrieval process. The banks are further mandated to furnish detailed account records, including account names, numbers, and transaction histories associated with the fraudulent inflow, to aid law enforcement and regulatory agencies in recovering the diverted money.
Legal analysts have described the ruling as a bold step in affirming judicial responsiveness to financial cybercrime, which has become increasingly rampant in recent years. A senior financial crime investigator, speaking on condition of anonymity, noted that "the rapid spread of illicit funds through multiple banking channels is a deliberate tactic by cybercriminals to frustrate recovery efforts. This court order is significant because it places collective responsibility on all banks to support transparency and restitution."
As of press time, compliance efforts were underway across the affected banks, with several institutions reportedly freezing flagged accounts and initiating internal reviews to trace how the fraudulent funds passed through their systems unnoticed.
The incident has sent shockwaves across the financial industry, prompting calls for enhanced digital security measures and stronger interbank cooperation to tackle the growing menace of cyber theft. Meanwhile, the Central Bank of Nigeria (CBN) is expected to issue further directives to banks on enhancing cybersecurity frameworks and improving real-time fraud detection protocols.
This case adds to the rising list of sophisticated cyberattacks plaguing Nigeria’s financial ecosystem, raising concerns about the vulnerability of legacy banking systems and the urgent need for a holistic digital defense strategy.