LAGOS, Nigeria—A Federal High Court in Lagos has delivered a landmark ruling, ordering 54 financial institutions to return approximately $12.1 million (N9.33 billion) that was fraudulently siphoned from an unnamed Nigerian old-generation bank. The funds had been dispersed across numerous accounts following a sophisticated hacking incident.
Justice Deinde Dipeolu issued the judgment on April 15, 2025, following an ex parte motion filed under suit number FHC/L/CS/629/2025. The court directed the banks to impose immediate restrictions on accounts that received the stolen funds and begin restitution to the originating bank.
The plaintiff bank disclosed that the breach occurred on March 23, 2025, affecting its core banking system. Unauthorized debits were made from multiple customer accounts, with the stolen funds distributed across the 54 institutions. An investigation revealed the funds had been transferred in layers—from primary accounts to secondary and tertiary beneficiaries—making recovery efforts complex.
Justice Dipeolu mandated the affected banks to provide detailed information on all implicated accounts, including balances, transfer histories, and associated customer data. Comprehensive customer records, including names and destination accounts, must also be shared with the court and plaintiff bank. The institutions were further instructed to maintain restrictions on all accounts linked to the hack until the full amount is recovered.
The judge clarified that the order exclusively applies to the fraudulently transferred funds and does not affect other customer deposits within the accounts. “For the avoidance of doubt, the order is only in respect of funds erroneously transferred and sums salvaged,” Justice Dipeolu emphasized.
This case highlights the increasing vulnerability of financial institutions to sophisticated cyberattacks. The ruling signals a strong stance against cybercrime in Nigeria, affirming the judiciary’s commitment to ensuring justice and restitution for financial fraud victims.
