E-Financial
Wema Bank Battles to Recover N888.3m which Allegedly Vanishes in Shocking System Glitch
Wema Bank PLC has taken legal action against 26 financial institutions, seeking a court order to recover N888,301,598.15 allegedly withdrawn from its accounts without authorization due to a system glitch.
The bank, in a suit filed before the Federal High Court in Lagos, urged the court to issue a preservative order mandating the financial institutions to return the funds traced to accounts held within their institutions.
In an affidavit written by Kehinde Buari, head of special Review & investigation of Wema Bank PLC, in support of an application filed before the court by a Lagos lawyer, It was alleged that, Wema Bank PLC, experienced a system glitch on one of its core banking applications on 16th of January, 2025, which resulted in the unauthorised transfer of substantial funds from accounts held with the bank, as well as accounts held with the respective financial institutions dragged before the court.
After the incident, Wema Bank PLC commenced the tracing of the funds that were transferred without due authorization. While some of the funds have been traced internally, others have been traced to accounts held with the defendants /financial institutions.
The bank’s initial investigations led to the tracing of funds to accounts held with some of the defendants.
Further investigations revealed that the recipients of these funds attempted to dissipate, hide and or obscure the same by moving part of the funds to some of the financial institutions.
The bank took immediate steps to notify the financial institutions of the glitch and the unauthorised transfers of funds from the bank’s customers’ accounts to accounts held with the defendants.
The bank requested the beneficiary accounts held with the defendants to be immediately restricted/sequestered in order to protect/salvage the bank’s customers’ funds.
Some of the financial institutions immediately restricted the beneficiary accounts and sequestered/salvaged a significant portion of the funds that were transferred out of the plaintiff’s customers without authorisation.
The total amount salvaged by the said defendants is N888,301,598.15 (Eight Hundred and Eighty-Eight Million, Three Hundred and One Thousand, Five Hundred and Ninety-Eight Naira, Fifteen Kobo)
Further to the above, the bank’s Internal Audit and Legal Teams detailed the outcome of the ongoing investigations tracing the funds moved to accounts held with the defendants as a result of the system glitch.
Accordingly, an Internal Memo dated 16 January 2025 and two summaries dated 20 January 2025 and 21 January 2025 were issued, showing:
i.Particulars of the sums transferred out of the bank’s customers’ accounts and traced to other accounts held with the bank as well as to accounts held by the respective defendant.
Particulars of the beneficiary accounts in respect of the traced sums.
iii. Particulars of the sums salvaged by the respective defendants. Respectively, copies of the bank’s internal memos, dated 20 January 2025 and 21 January 2025, have been filed before the court.
The investigation into the unauthorised movement of funds continued after the investigations conducted above.
Mr. Buari stated further that he knows that the beneficiaries/recipients of the unauthorised funds attempted to disguise/obscure the source of the said funds by dissipating the same through an intricate web of transfers.
Following the conclusion of further investigations, the plaintiff traced additional funds to the defendants.
Due to the complicated and intricate nature of the movement of the funds from Wema Bank, it became necessary to involve the Nigeria Interbank Settlement System ( NIBSS)
The NIBSS promptly exchanged correspondence with several banks on 16th January 2025 regarding funds traced to the said banks from Wema Bank as a result of the system glitch.
i.The total sums traced to and or salvaged by the respective defendants, particularly as shown in various Exhibits, ought to be returned to recovered by Wema Bank from the respective defendants.
The financial institutions/defendants ought to return to the plaintiff the total salvaged sum of N888,301,598.15 (Eight Hundred and Eighty-Eight Million, Three Hundred and One Thousand, Five Hundred and
Further to the above, the tracing of the millions of funds transferred without authorisation is still ongoing.
Wema Bank has approached this honourable court to secure an order directing and enabling the respective defendants to return the affected funds to the bank
The steps taken by the defendants are only temporary, pending the issuance of preservative, repatriation and further orders by the honourable court.
Further to the above steps, the plaintiff is required to obtain the relevant/necessary orders from this honourable court, failing which the defendants would be constrained to release the ringfenced/sequestered/salvaged funds.
Consequently, Wema Bank is seeking for:
An order directing/mandating the 26 financial institutions listed before the court to reverse/return to Wema Bank PLC the total sum of money running into Billions of Naira as appearing in Exhibits attached to the affidavit in support of the originating summons.
. An order directing/mandating each of the respective defendants to reverse/return to the plaintiff, any other/further sum of money, as may be traced and or salvaged from funds moved without authorization from accounts held with Wema Bank to accounts held with respective defendants, as a result of the system glitch that occurred on 16 January 2025.
An order directing/ mandating the respective management/ officers of the respective defendants to disclose to the plaintiff and or relevant law enforcement/regulatory agencies, all required/relevant particulars of account holders who have dissipated the sun’s transferred to their accounts without authorisation, for purposes of investigation and or recovery.
An order directing/mandating the respective
management/officers of the respective defendants to place on the Central Bank of Nigeria Credit Risk Management System List and any other Watchlist, the Bank Verification Numbers (BVNs) of all account holders who have dissipated the sums transferred to their accounts without authorisation, until the full recovery of the dissipated funds by the plaintiff.
E-Financial
First Asset Management Launches National Initiative to Raise 100m Investment-Smart Nigerians
First Asset Management, one of Nigeria’s leading investment managers and a subsidiary of FirstHoldCo Plc, launches the 100 million Smart Inventors campaign.
Nigeria’s investment market has huge potential, yet it remains underutilised due to widespread distrust, misinformation, and past losses suffered through fraudulent schemes. Trillions of Naira have been lost, leaving many Nigerians fearful and excluded from real, rewarding investments and leaving them on the economic sidelines.
Reports show that less than 5% of adult Nigerians currently participate in the formal capital market, and as low as 0.25% invest in Mutual Funds, a stark contrast to participation rates often exceeding 50% in developed economies like the United States. This highlights the urgent need to restore trust and improve access to credible investment education.
In response to this critical challenge, First Asset Management has announced the launch of a landmark national movement, the “100 million Smart Investors Initiative”. The campaign is positioned as a direct strategy to rebuild investor confidence and democratise financial knowledge across the nation.
According to the firm, the initiative was conceived from the need to address the anxieties that have historically prevented countless Nigerians from participating in real wealth-building investments. Drawing on its track record of trust and market expertise, First Asset aims to cultivate a new generation of informed, confident investors.
At the heart of the initiative is a comprehensive investor education programme. The goal is to transform casual interest in investing into active participation within a supportive, well-informed community.
Beyond expanding investor numbers, the movement seeks to improve the quality of investment decisions by equipping individuals with the tools to evaluate opportunities and avoid fraudulent platforms.
For everyday Nigerians, the initiative promises simplified, practical financial education that demystifies investing. By building a strong peer network through a nationwide community platform, it seeks to reduce the isolation often faced by new investors and promote collective financial empowerment.
Ultimately, the 100 Million Smart Investors movement represents a significant investment in Nigeria’s human capital. By providing actionable steps, success stories, and sustained education, First Asset Management aims to usher in a new era of financial literacy and participation.
This initiative would not only enhance the financial well-being of individuals and families but also contribute to the broader economic prosperity of the nation by channelling dormant capital into productive sectors of the economy.
To kickstart this bold quest, the brand has planned a series of free educational bootcamps, podcasts and community engagement with industry experts and leaders. The inaugural event will take place live on 26 July 2025.
Follow @FirstAssetManagement on all social media handles to stay informed and visit https://first-assetmanagement.com/smart-investors for details on how to join the movement.
PalmPay, a leading neobank and fintech platform focused on emerging markets, has been recognised in CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list. This marks the second year in a row that PalmPay has earned a place among the world’s most innovative and impactful financial technology firms.
The selection is based on a rigorous evaluation of thousands of companies globally, assessing growth, innovation, market penetration, and impact. This year’s list includes a mix of global leaders – including Revolut, Nubank and Ant Group – alongside rising stars from high-growth markets, underscoring the growing influence of emerging-market fintechs like PalmPay.
PalmPay’s inclusion reflects its continued momentum as one of Africa’s leading fintech platforms. With over 35 million registered users and up to 15 million transactions processed daily, the company offers a comprehensive suite of digital financial services tailored to the needs of underserved communities.
In its main market, Nigeria, PalmPay operates as a full-service neobank, offering consumer financial services such as transfers, bill payments, credit, savings, and insurance – all accessible through its user-friendly app and supported by a nationwide network of over 1 million agents and merchant partners. The company also provides POS and API-driven B2B solutions tailored to the needs of merchants and enterprise clients.
“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” said Sofia Zab, Founding Chief Marketing Officer at PalmPay.
“Through cutting-edge technology, deep local distribution, and a customer-first mindset, we’ve built Nigeria’s leading neobank. As we scale PalmPay to more emerging markets, including Tanzania and Bangladesh, our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact.”
As part of its broader expansion strategy, PalmPay recently launched in Tanzania and Bangladesh through a smartphone device financing model that serves as an entry point to digital financial services.
“PalmPay is building a neobanking platform tailored to the realities of emerging markets,” said Jiapei Yan, Group Chief Commercial Officer at PalmPay. “We are creating the infrastructure for a connected digital economy – where people and businesses can thrive through reliable, inclusive financial tools.
This recognition from CNBC and Statista affirms our progress and also the scale of the opportunity ahead. As we expand across more emerging markets, we are committed to creating lasting value for our users, partners, and the communities we serve.”
PalmPay’s inclusion follows another major recognition earlier this year: the company ranked #2 overall and #1 in the financial services sector on the Financial Times – Africa’s Fastest-Growing Companies 2025 list. The ranking, based on revenue growth between 2020 and 2023, highlighted PalmPay’s rapid scale and market traction across Africa.
PalmPay currently operates in Nigeria, Ghana, Tanzania, and Bangladesh, and is expanding its presence across Africa and Asia through device financing, digital banking, and B2B payment services. Backed by a robust neobanking platform and a partnership-led approach, the company is committed to shaping the next chapter of inclusive financial growth.
Fidelity Bank Plc has reaffirmed its commitment to quality education and youth empowerment with the renovation of a classroom block and donation of textbooks to Aso Pada Government Secondary School in Karu LGA, Nasarawa State.
L-R: The Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka; Vice Principal, Government Secondary School, Aso Pada, Maraba, Mr. Abdullahi Idris; Project Co-ordinator, Elite Bankers 2025 Inductee Class, Fidelity Bank Plc, Onyinyechi Ihesiaba; Vice Principal -Academics, Government Secondary School, Aso Pada, Maraba, Mr. Ela Isa; during the commissioning of a renovated block of classrooms and the distribution of Back-to-School Materials at Government Secondary School Aso Pada, Maraba, Nassarawa State recently.
The project was executed through the Fidelity Helping Hands Program (FHHP), a corporate social responsibility initiative that enables staff to identify community needs, raise funds, and receive matched support from the bank.
Speaking at the handover ceremony, Dr. Meksley Nwagboh, Divisional Head, Brand and Communications, said the school was chosen due to its impact on the local community and its lack of renovation in over 15 years.
Vice Principal Abdullahi Idris praised the bank’s gesture, calling it “an investment in the future of our nation,” and expressed hope for a lasting partnership.
The initiative follows Fidelity Bank’s recent donation of 1,000 solar-powered schoolbags to pupils across Ogun State, aimed at improving study conditions in areas with limited electricity.
Fidelity Bank serves over 9.1 million customers and has received multiple awards for innovation and SME support, including the 2024 Excellence in Digital Transformation Award and Best Bank for SMEs in Nigeria by Euromoney.
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