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Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

Published

2 years ago

August 14, 2024

Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

The Federal High Court in Abuja on Monday issued an interim freezing order against several accounts in Fair Money Microfinance Bank Ltd, Palm Pay Limited, and Opay Digital Services Limited, directing the organizations to reverse N139,630,000 credited to some of their customers and account holders as a result of a “system glitch” at TAJ Bank Ltd.

The order was made following a motion ex parte filed by Taj Bank Ltd and six of its customers on July 23, 2024, in suit number FHC/ABJ/CS/1018/2024 against the three organizations.

Nigerian Interbank Settlement System Plc was designated as the fourth respondent.

In their originating summons and motion ex parte, TAJ Bank’s legal team urged the court to hold that based on the Central Bank of Nigeria’s Regulatory Framework for Banking Verification (BVN) Operations and Watchlist for the Nigerian Banking Industry, October 2017, any money that illegally enters the accounts linked to the Bank Verification Numbers (BVN) of any institution’s account holders through suspicious debits and credits should be immediately returned to where the money was originally domiciled.

In his affidavit in support, Unit Head of the Investigation and Fraud Management Unit, Taj Bank Limited, Muhideen Olujinmi, stated that one of the goals of the aforementioned Central Bank of Nigeria Regulations is to, among other things, ensure the effectiveness of Know Your Customer (KYC) principles and the promotion of a reliable payment system, as well as the reduction of fraud incidences and the safeguarding of depositors’ funds to boost public confidence in the banking industry.

According to him, following a system glitch on Taj Bank’s server, certain individuals illegally initiated multiple successful debit transactions and withdrew and transferred funds from the 2nd to 7th Plaintiffs’ accounts into several accounts held by the 1st, 2nd, and 3rd Respondents.

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He argued that the cash had been unlawfully transferred into multiple accounts held by the first, second, and third respondents.

He stated further, “That certain individuals took advantage of this glitch to carry out several transactions exposing TAJ Bank and its customers to a humongous liability to the tune of N139,630,000.00 received in several accounts domiciled with FairMoney, Opay, and PalmPay.

“That upon realizing this glitch, an immediate complaint was made to the 1st to 4th Respondents, and the said Respondents placed a post-no-debit instruction (debit freeze) on the subject accounts to avoid further dissipation of the Plaintiffs’ money.”

He explained that if all of the accounts listed in its exhibits belonging to the perpetrators of the alleged fraud are not urgently blocked or placed on no debit restriction and the amount unlawfully obtained is reversed, they will continue on a spending spree and further dissipation of funds belonging to TAJ Bank customers.

He noted that, in accordance with relevant financial legislation, financial platforms have the authority to block, freeze, and impose a post-no-debit on all of the account numbers specified in order to protect and secure depositors’ funds.

“The Plaintiffs have been greatly affected by the resultant effect of the system glitch, and unless this application is granted, the Plaintiffs will be further subjected to untoward hardship and dire financial loss,” he added.

TAJ Bank subsequently asked the court to order FairMoney, Opay, and PalmPay to reverse and refund the sum of N139,630,000.00 wrongfully debited from six of its customers’ accounts due to its system glitch, adding that they are wrongful and illicit debits transferred into the 1st-3rd Defendants’ customers’ accounts.

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In its motion ex parte, TAJ Bank’s legal team sought an order of interim mareva injunction (freezing order) mandating the 1st, 2nd, and 3rd Respondents to comply with the CBN’s guidelines by restricting and reversing the sum illegally received and transferred from the account of its customers to the accounts of the identified beneficiaries respectively (following the system glitch in the 1st Plaintiff/Applicant’s server), pending the hearing and determination of the substantive suit.

On July 26, 2024, Justice Peter Lifu granted TAJ Bank’s interim request, indicating that the freezing order would remain in effect while the application was heard and decided.

As requested by TAJ, the judge further ordered the 1st, 2nd, and 3rd Respondents to disclose under oath to the Court the sums in the credit of the specified account holders of their institution within 7 days of the order’s service.

The court also ordered TAJ Bank to enter into a fresh undertaking to protect or insure FairMoney, Opay, and PalmPay against any loss in the event of any emerging facts as to the inappropriateness of the interim orders granted.

The court then adjourned to August 12, 2024, for a hearing.

FairMoney, Opay, and PalmPay did not have legal representation in court at the hearing on Monday.

TAJ Bank’s lawyer, Rilwan Idris, told the judge that in compliance with his order, his clients have filed an affidavit to insure the respondents from any damage.

That affidavit was filed on July 29, 2024, and I can confirm that all of the respondents have received both the originating processes and the orders,” he said.

Court freezes Opay, PalmPay, FairMoney accounts over N139.6m unlawful transfer

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Five Injured as 40-Foot Truck Rams Two Buses on Lagos-Ibadan Expressway

Published

13 hours ago

October 13, 2026

Trends Admin

Five Injured as 40-Foot Truck Rams Two Buses on Lagos-Ibadan Expressway

Five people have sustained serious injuries after a 40-foot truck crashed into two commercial buses around Ojodu-Berger on the Lagos-Ibadan Expressway in Lagos State.

The accident reportedly occurred at about 1:45 p.m. on Tuesday, October 13, 2026, near the Berger Pedestrian Bridge, inward Kara Bridge, causing significant traffic congestion along the busy highway.

The Lagos State Traffic Management Authority (LASTMA) said the truck, identified as a 40-foot HOWO vehicle, collided with an interstate commercial Mazda bus and a Toyota Hiace bus, both carrying passengers.

According to the agency, its operatives stationed around the Ojodu-Berger axis responded to the crash and rescued five seriously injured people, comprising three women and two men, including a driver.

The victims were taken to the Lagos State Emergency and Trauma Centre at Toll Gate for medical assessment and treatment. Motorists assisted in transporting the injured, accompanied by LASTMA officials, while police officers from the Isheri Division also supported the rescue operation.

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The collision triggered a traffic backlog extending towards Otedola Bridge, disrupting movement along the expressway, which connects Lagos with Ogun State and other parts of the South-West.

LASTMA officials managed traffic around the affected area and worked to remove the damaged vehicles from the carriageway to prevent further incidents and restore normal movement.

The vehicles involved, including the truck, were subsequently handed over to the police for investigation into the circumstances surrounding the crash. The precise cause of the collision had not been established in the available reports.

LASTMA urged operators of heavy-duty vehicles to ensure their trucks were properly maintained and roadworthy before travelling. The agency also advised drivers to observe speed limits, comply with traffic regulations and follow instructions from traffic officials, particularly along busy highways.

The incident adds to a series of serious road crashes involving heavy-duty vehicles reported on Lagos roads in recent weeks, renewing concerns about vehicle safety and the risks posed by collisions involving trucks and passenger buses.

Motorists travelling through Ojodu-Berger, Kara Bridge and the Otedola axis were advised to exercise caution and anticipate delays while traffic officials managed the aftermath of the crash.

Five Injured as 40-Foot Truck Rams Two Buses on Lagos-Ibadan Expressway

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VIDEO: Outrage as Indian National Assaults Nigerian Truck Drivers in Lagos

Published

21 hours ago

October 13, 2026

Trends Admin

VIDEO: Outrage as Indian National Assaults Nigerian Truck Drivers in Lagos

A viral video showing an Indian national allegedly assaulting two Nigerian truck drivers at a company’s premises along the Lagos-Ibadan Expressway has sparked outrage, with transport stakeholders demanding justice and calling for an investigation.

The incident reportedly occurred on Saturday, October 10, 2026, at the premises of Karma Agric Feed & Foods Ltd, around Km 12 of the Lagos-Ibadan Expressway, opposite the old Ratcoc Quarry. The footage circulated widely on social media on Monday, October 12.

The two transport workers were identified as Rilwan Olajide, a truck driver, and Taiwo Yinusa, his motor boy. The video appears to show a confrontation between the drivers and individuals at the company’s premises, with the disagreement reportedly involving truck keys and a demand for demurrage compensation.

The situation allegedly escalated when a man identified in media reports as an Indian national struck one of the drivers with a stick. Another worker appeared to be restrained by other individuals and kicked while on the ground.

However, the full circumstances leading to the confrontation remain unclear, and the allegations have yet to be conclusively established.

The Association of Maritime Truck Owners (AMATO) condemned the alleged assault, describing the reported treatment of the workers as unacceptable. The association said the available video footage and other materials raised concerns about the alleged involvement of individuals connected with the company.

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AMATO stressed that disagreements over payments, truck keys or other commercial matters should be resolved through lawful means rather than violence or intimidation. It also emphasised that every person in Nigeria is entitled to dignity and protection under the law, regardless of nationality or occupation.

The association called on the relevant police authorities to conduct a thorough and impartial investigation, preserve available evidence and identify everyone involved. It urged the authorities to prosecute anyone found culpable in accordance with the law.

AMATO also appealed to the management of Karma Agric Feed & Foods Ltd to cooperate with investigators and take appropriate steps to prevent a recurrence. It maintained that accountability should be based on the actions of individuals and should not be used to stigmatise Indian nationals generally.

In a separate response, the Lagos State Trucks and Cargo Committee (LASTCOC) reportedly directed truck owners and drivers to suspend the delivery and collection of consignments to and from the company pending further action over the incident.

The directive could affect cargo movement involving the company while transport operators await the outcome of efforts to address the allegations. LASTCOC also warned that operators who disregarded the directive could face sanctions.

The reported suspension underscores the growing tension between transport stakeholders and the company following the circulation of the video.

The incident has renewed concerns about the safety and treatment of Nigerian truck drivers and motor boys, who play a critical role in moving goods across the country. Transport stakeholders have insisted that workplace and commercial disputes must be handled through established procedures, with violence and intimidation investigated and addressed appropriately.

As of the latest available reports, there was no confirmed public announcement of an arrest or a formal police finding on the incident. The company’s response was also not available. The allegations therefore remain subject to investigation, and the responsibility of each person involved must be determined through due process.

VIDEO: Outrage as Indian National Assaults Nigerian Truck Drivers in Lagos

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$1bn Arms Fund: Buratai Challenges Defence Ministry to Account for Money

Published

22 hours ago

October 13, 2026

Trends Admin

Former Chief of Army Staff, Lieutenant General Tukur Buratai (retd.)

$1bn Arms Fund: Buratai Challenges Defence Ministry to Account for Money

Former Chief of Army Staff, Lieutenant General Tukur Buratai (retd.), has challenged the Ministry of Defence to explain how the $1 billion approved for military equipment procurement during his tenure was spent, insisting that neither he nor the Nigerian Army, Navy and Air Force handled the funds.

Buratai made the demand on Monday at the third conference of the Defence Correspondents Association of Nigeria (DECAN) in Abuja, where he called for greater transparency in Nigeria’s defence spending and accountability for public funds allocated to national security.

The retired army chief said the National Economic Council (NEC) approved the $1 billion for defence procurement, but the money was released to the Ministry of Defence, which he said managed the procurement process.

“Not a single dollar of that fund passed through my hands or through the accounts of the Nigerian Army, Navy, or Air Force,” Buratai said.

He maintained that the armed services did not receive any portion of the money to initiate procurement directives, arguing that responsibility for explaining how the funds were disbursed and which contracts were awarded rested with the ministry that managed them.

Buratai described allegations surrounding the money as “political and malicious”, saying they first emerged during the 2019 general election period, when opposition figures alleged that the funds had been diverted for political purposes.

According to him, the Federal Government publicly denied the allegation at the time, but the controversy continued to damage the reputations of military service chiefs.

He faulted the Ministry of Defence for failing to publicly provide a detailed account of the disbursements and contract awards, insisting that accountability should rest with the institution responsible for managing the funds.

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“The $1 billion arms procurement controversy festered because the institution that managed the funds, the Ministry of Defence, remained silent while Service Chiefs absorbed criticism,” he said.

Buratai called for the establishment of a Defence Procurement Transparency Portal to publish information on contracts awarded, contractors and delivery timelines, subject to legitimate national security restrictions.

He said the proposed platform would help the public understand how defence procurement funds were utilised without exposing sensitive operational information.

“When the media asks where the money went, the answer should come from the ministry that spent it, not from military officers who never touched it,” he said.

The former army chief also called for quarterly accountability bulletins summarising court-martial outcomes involving alleged human rights violations and operational misconduct.

He said such disclosures should protect the rights of accused personnel and avoid compromising ongoing military operations.

On allegations of human rights violations by security personnel, Buratai said credible complaints should be investigated and prosecuted where evidence substantiated wrongdoing.

“The military is not above the law,” he said, stressing the need for transparent disciplinary procedures capable of addressing misconduct at all levels.

At the same conference, former Senate President and Chairman of the Senate Committee on Defence, Ahmad Lawan, called for more predictable funding for the Armed Forces and other security agencies.

Lawan proposed dedicating a portion of national revenue to defence and security spending, alongside making military and security agency budgets a first-line charge to reduce delays in releasing funds.

He argued that troops could not be expected to achieve better operational results without adequate weapons, equipment and other resources.

Lawan said the National Assembly had consistently supported executive requests for security funding, adding that improved funding arrangements could help the military procure equipment in bulk and plan operations more effectively.

Meanwhile, Minister of Information and National Orientation Mohammed Idris said military force alone could not resolve Nigeria’s security challenges.

Idris, represented by Voice of Nigeria Director-General Jibrin Ndace, said military operations needed to be supported by reliable intelligence, modern technology, coordination among security agencies and cooperation with local communities.

He said the Federal Government was pursuing military modernisation, improved surveillance and intelligence-led operations to address terrorism, banditry and other security threats.

Idris also disclosed that President Bola Ahmed Tinubu had directed the preparation of a comprehensive National Threat Assessment and a rolling five-year Strategic Defence Operations Plan in August 2026.

According to the minister, the initiatives were intended to establish security priorities, improve coordination and guide the deployment of resources.

He said the President had also approved salary increases of between 30 and 80 per cent for Armed Forces personnel, effective September 2026, to recognise their sacrifices and improve welfare.

Idris urged journalists to verify information and report responsibly on security operations, while emphasising that responsible reporting should not shield the government or security agencies from scrutiny.

He said the media must continue asking difficult questions and holding public institutions accountable while respecting legitimate operational sensitivities.

Buratai’s demand has renewed attention on the management of the $1 billion defence procurement fund, with the former army chief insisting that the Ministry of Defence should provide an account of how the money was spent. His remarks do not, on their own, establish that the funds were misappropriated.