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GTBank Secures Court Order to Recover ₦1.9 Billion Mistakenly Credited to Customers

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Guaranty Trust Bank (GTBank), a tier-1 Nigerian financial institution with a market capitalisation of ₦1.68 trillion, has obtained a court order to recover ₦1.9 billion mistakenly credited to customer accounts during duplicate transactions. The incident occurred between October 28 and 29, 2024, as the bank processed unapplied NIBSS Instant Payment (NIP) inflows, leading to erroneous fund transfers.

The Federal High Court in Lagos, presided over by Justice F.N. Ogazi, granted GTBank’s request to restrict accounts that received the duplicated funds. This judicial intervention ensures the recovery of the misappropriated funds. According to court filings, some recipients had already transferred the funds to other banks before the error was identified. The court order, now served on the affected banks, enables the reversal of these transactions.

GTBank has not issued an official statement regarding the matter at this time.

Service Disruption and Software Migration Challenges

The error coincided with ongoing disruptions following GTBank’s migration from the Basis core banking system to Finacle, a widely adopted banking application developed by Infosys. The transition, initiated in September 2024, was aimed at modernizing the bank’s operations and enhancing customer experiences. However, the process proved turbulent, resulting in system instability that persisted for weeks after the migration was completed in October 2024.

During this period, customers faced issues ranging from erroneous transaction alerts to outright unavailability of banking services. Frustrated users took to social media platforms, including X (formerly Twitter), to express dissatisfaction with the prolonged silence and service failures. In November 2024, the bank issued a formal apology acknowledging the disruptions.

While the court filings do not directly attribute the duplicate transactions to the system upgrade, the migration underscores broader concerns within Nigeria’s banking sector. In 2024 alone, at least four commercial banks undertook similar upgrades, leading to widespread service disruptions. In response, the Central Bank of Nigeria mandated regulatory approval for core banking system upgrades to minimize customer inconvenience.

Implications for GTBank

The ₦1.9 billion error adds another layer of scrutiny to GTBank’s operations amidst its efforts to stabilize post-migration. The bank’s ability to recover the funds swiftly and address underlying issues will be critical in restoring customer confidence and maintaining its leadership position in the industry.

The incident also serves as a cautionary tale for financial institutions navigating the complexities of technology upgrades, emphasizing the need for meticulous planning and transparent communication to safeguard customer trust.

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