The fintech subsidiary of MTN Nigeria, Momo Payment Service Bank Limited (MomoPSB) has filed a suit in the Federal High Court seeking to compel 18 commercial banks to refund about N22.3billion that was mistakenly transferred in 700,000 transactions into accounts belonging to about 8,000 bank customers on May 24, 2022.
The company disclosed that the erroneous transfers were a result of “system exploitation” and the banks listed in the suit as defendants include Access Bank, Ecobank, Fidelity Bank, First Bank, First City Monument Bank, Guaranty Trust (GT) Bank, Heritage Bank, and Polaris Bank.
Others are Providus Bank, StanbicIBTC, Standard Chartered, Sterling Bank, Suntrust Bank, Union Bank, United Bank for Africa (UBA), Unity Bank, Wema Bank, and Zenith Bank.
Chief Executive Officer (CEO), MomoPSB, Anthony Usoro said, “We were able, through system checks, to confirm the banks and accounts into which the various sums of money were transferred. We were also able to confirm how much was paid into each bank account in total. The said list of accounts which received the funds were made available to the respective banks as a preliminary step to mitigate the applicants losses.
“The transfers were due to the fact that the plaintiff suffered a system exploitation which led to the said debits. There is no transaction between the plaintiff and the recipient account holders that warranted the transfer of the funds to those account”.
He stated that his organization’s decision to resort to the court was because the affected banks insisted they required a court order before they could reverse the funds into MomoPSB’s account.