CBN lists 4 Steps to Request Refund as MTN Drags 18 Banks to Court Over N22.3bn ‘Error’ Transfer to Customers

CBN lists 4 Steps to Request Refund as MTN Drags 18 Banks to Court Over N22.3bn ‘Error’ Transfer to Customers

  • Dealing with Nigerian banks can be very tough especially when requesting for refund on failed transactions, error transfer
  • MTN Nigeria has also been caught in the mess but is not ready to lay low as many Nigerians would have
  • It has dragged 18 commercial banks to court after MTN MOMO bank transfers N22.3 billion to 8,000 customers in error

MTN's newly licensed Mobile Money Payment Service Bank Limited (MOMO PSB) has sued 18 Nigerian banks to court to recover N22.3 billion ($53.7 million) that was erroneously sent to 8,000 bank accounts.

The error was caused by a computer glitch, according to a court filing in action No. FHC/L/CS/960/2022 filed by the Mobile Money Bank against 18 banks.

MTN's MOMO payment Bank is seeking a judicial declaration that the money transmitted in mistake belongs to it, not the banks' customers, in an initiating summons dated 30 May 2022 and filed before a Federal High Court.

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MTN drags banks to court
CBN Governor Godwin Emefiele Credit: ALexa
Source: Getty Images

The Cable reports that the requests formed part of the reliefs sought in the suit filed by a Senior Advocate of Nigeria, Chief Lotanna Chuka Okoli (SAN) on behalf of Momo Payment Service Bank Limited.

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Among other reliefs, the MTN bank is also seeking an order of the court directing the 18 banks to individually account for the sums available in their customer accounts and the sums which have been removed by the customers and are no longer available.

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 N22.3bn 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.

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CBN four steps to request refund

The Central Bank of Nigeria on its website has listed steps on how banks customers in Nigeria can lodge a complaint against Financial Institutions such as Commercial Banks, Microfinance Banks, Primary Mortgage Institutions and Discount Houses.

Contact Your Institution First

The Central Bank of Nigeria (CBN) issued a circular in 2011 directing all banks to expand their existing ATM HELP DESK to handle all types of consumer complaints.

Therefore, CBN expects customers to first report the complaint at the bank/branch where the issue originated and then allow 2 weeks (it might be less in some banks) for the issue to be resolved.

If Your Bank Fails to Resolve Your Complain

This will be the next step, customers will have to escalate their complaint to the Consumer Protection Department (CPD) of the CBN if the bank fails to find a solution.

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The Customer is expected to write using this email: or a handwritten letter to Director, Consumer Protection Department Central Business District, Abuja.

The letter can be submitted at the CBN Head Office OR at any of the Central Bank of Nigeria branches of nationwide.

The Complaint letter (petition) should contain amongst other things the following:

  • Name, Address, Contact Phone Number & E-mail of the Complainant;
  • Name of your Financial Institution;
  • Personal banking details (Do NOT include PIN & Passwords, please;)
  • History/Date of the transaction in dispute;
  • Amount claimed (if any);
  • Attach relevant documents to support you claim and;
  • Evidence to show that you have first lodged the complaint at your bank.

CBN finally added that Nigerians can make further inquiries and obtain additional information on the Complaints Handling Process of the Central Bank of Nigeria from the Complaints Unit of your Bank/Financial Institution or from CBN offices nationwide.

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Woman drags bank to court over failed N61k POS transaction, wins N500k

Meanwhile, in another story, a Nigerian woman has won a legal case against Polaris Bank over a failed transaction

She had approached the court seeking compensation after the bank failed to reverse her funds despite several visits

The Central Bank of Nigeria directs that every failed transaction must be reversed within 72 hours of working days or it will attract a fine.


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