With the rise in mobile banking transactions across Nigeria, experts have advised customers on the proper steps to take when funds are mistakenly transferred to the wrong account.
The advice comes against the backdrop of increasing complaints from bank customers who have lost money due to erroneous transfers.
Mr. Abdulrahman Musa, a resident of Kaduna, narrated how he mistakenly transferred N200,000 to a wrong account on March 12, 2024.
“I immediately reported to my bank. After about a month of following up, the bank was able to initiate a reversal request and eventually reversed the money back to my account,” he told NAN.
However, not all customers have been lucky. Mrs. Sarah Anzaku said she lost N20,000 after transferring money to a wrong wallet account.
“The bank told me they could not help much because it was a financial technology company. That was how I lost the money,” she said.
Similarly, Mr. Uche Kelechi said his funds could not be recovered after he mistakenly sent money to a wrong PalmPay account during the Easter period.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that the value of mobile money transfers rose by 74 per cent to N41.5 trillion in 2024, compared to N23.8 trillion in 2023.
Despite this growth, erroneous transfers remain a challenge. Experts say customers must act quickly to increase their chances of recovery.
According to banking procedures, a customer who mistakenly transfers money must immediately lodge a formal complaint with the recipient’s bank, providing evidence of the transaction.
Checks reveal that banks may place a Post No Debit (PND) on the recipient’s account pending investigation. If the recipient consents, the funds can be reversed without a court order.
However, where the recipient refuses, the victim may be required to seek a court order for reversal. Legal experts explain that such applications are filed either at Magistrate/District Courts for lower amounts or at State High Courts for higher sums.
Applicants are also required to prove that the transfer was made in error by providing evidence such as bank statements, debit alerts and proof of complaint to the bank.
Financial analysts advise customers to always double-check account details before making transfers to avoid such errors.
They also urged regulatory authorities to strengthen consumer protection measures as mobile transactions continue to surge in the country.
