In order to recover N22.3 billion that was inadvertently transferred to 8,000 accounts in the banks, MTN’s newly authorized Mobile Money Payment Service Bank Limited (MOMO PSB) has taken 18 Nigerian banks to court.
The error was caused by a computer glitch, according to court documents in lawsuit No. FHC/L/CS/960/2022 brought by the Mobile Money Bank against 18 Banks.
The amount is about $53.7m.
MTN’s MOMO payment Bank has requested a court declaration that the funds that were improperly transferred to it belong to it and not the banks’ clients in an originating summons dated May 30, 2022, which was filed before a Federal High Court.
The requests were a part of the reliefs requested in the lawsuit brought by Momo Payment Service Bank Limited and represented by Senior Advocate of Nigeria, Chief Lotanna Chuka Okoli (SAN).
In addition to other relief, the MTN bank is asking the court to issue an order mandating that each of the 18 banks separately account for the funds that are still in their customers’ accounts as well as the funds that have been taken out by those same customers and are no longer there.
In an affidavit in support of the originating summons, the Chief Executive Officer (CEO), MOMO PSB Ltd, Mr. Anthony Usoro Usoro claimed that MOMO PSB Ltd is the bona fide owner of the aggregate sum of N22.3B which is maintained in its MOMO settlement account.
He averred that on or about the 24th day of May, 2022, it was noticed that funds had been erroneously transferred from its settlement account to various accounts maintained by the 18 banks.
Anthony in the affidavit further claimed that a total of about 700, 000 transactions were processed with credits made into about 8,000 various accounts in the listed 18 banks.
Upon becoming aware of the incident, he further asserted that MOMO PSB Ltd management responded by immediately shutting down the service to limit the impact and triggered engagement with the banks for the commencement of recovery activities from the accounts of the various beneficiaries in the various banks.
The erroneous transfers, he claimed, were due to the fact that MOMO PSB Ltd suffered a system glitch which led to the said debits.
The MTN’s MOMO Bank’s boss in the affidavit asserted that the 18 banks requested for an order of court mandating them to reverse the credits made into their customers account before they can do so, hence, the filing of the suit.
The plaintiff therefore prayed the Federal High Court to compel the 18 commercial banks operating in the country to refund about N22. 3billion erroneously transferred into their customers’ accounts.
It also asked the court to order the banks to provide information about the customers into whose accounts the said funds were unintentionally paid.
MPSBL is contending that, under the Central Bank of Nigeria (CBN) Regulation on Instant (Inter-Bank) Electronic Funds Transfer Services, made pursuant to Sections 2(D), 33(1)6) and 47(2) of the CBN Act 2007, it is incumbent on the 18 banks to make refund and provide the required information.
It added that its resort to the court was informed by the insistence of the 18 banks that they needed to be ordered by the Federal High Court before they could act.