Guaranty Trust Bank (GTBank), a leading Nigerian financial institution with a market capitalization of ₦1.68 trillion, has obtained a court order to recover ₦1.9 billion mistakenly credited to customer accounts during duplicate transactions. The error occurred between October 28 and 29, 2024, as the bank processed unapplied NIBSS Instant Payment (NIP) inflows.
Following the discovery of the error, GTBank initiated an internal investigation, revealing that some of the funds had been transferred to accounts in other banks. To recover the money, the bank sought and was granted a court order by Justice F.N. Ogazi of the Federal High Court in Lagos. The order, which restricts access to affected accounts, has been served to receiving banks, facilitating the return of the erroneously credited funds.
This incident coincided with disruptions linked to GTBank’s switch from its Basis core banking application to Finacle, a popular banking software developed by Infosys. The migration, completed in September 2024, was intended to improve operations and enhance customer experiences. However, it was plagued with challenges, including unstable banking channels and erroneous transaction alerts.
Customer dissatisfaction peaked between September and November 2024, with widespread complaints on social media platforms, including X (formerly Twitter). GTBank issued a public apology in November to address the concerns.
The court filings do not directly link the duplicate transactions to the software migration. Still, core banking system upgrades were a significant theme in 2024, with at least four Nigerian banks undergoing similar transitions. These disruptions prompted the Central Bank of Nigeria to mandate regulatory approval before banks proceed with such upgrades in the future.
GTBank has not commented on the matter as of now. The incident underscores the complexities of large-scale banking technology transitions and the risks of operational errors in the financial sector.
