Wema Bank Under Fire as Transfer Glitch Wipes Out Depositors’ Funds

Wema Bank Plc has reported a significant system glitch that led to the unauthorized withdrawal of customers’ funds, amounting to approximately N888.3 million. The financial institution is currently making efforts to recover the money and credit it back to the rightful owners.

To facilitate the recovery process, Wema Bank has approached a Federal High Court in Lagos, seeking a preservative order against 26 financial institutions. The bank wants these institutions to return the funds traced to various accounts where they were allegedly transferred following the glitch.

In an affidavit submitted to the court, Wema Bank’s Head of Special Review and Investigation, Mr. Kehinde Buari, stated that the operational failure occurred on January 16, 2025. During this incident, the bank’s core banking system suffered an unexpected malfunction, leading to the unauthorized withdrawal of funds.

Following the discovery of the issue, Wema Bank launched an internal investigation. The probe revealed that some recipients of the misdirected funds attempted to conceal the money by transferring it across multiple accounts. In response, the bank swiftly alerted the financial institutions involved and requested them to freeze the affected accounts.

Wema Bank also sought assistance from the Nigeria Inter-Bank Settlement System (NIBSS) to track the movement of the funds. With the cooperation of the involved banks, a total of N888.3 million was successfully frozen, preventing further unauthorized transactions.

The bank, under the leadership of Managing Director Mr. Moruf Oseni, is now asking the court to grant an order directing the return of the recovered funds to its customers. Additionally, Wema Bank is requesting that the affected account holders be placed on the Central Bank of Nigeria’s (CBN) Credit Risk Management System and other financial watchlists through their Bank Verification Numbers (BVNs). The measure, according to the bank, is necessary to prevent any further unauthorized transactions and to ensure full recovery of all lost funds.

The court’s decision on Wema Bank’s request is expected to play a crucial role in determining the next steps in the recovery process. The bank remains committed to ensuring that all affected customers receive their funds while also preventing future occurrences of such incidents.