Court unfreezes ‘4 accounts’ linked to N21 billion system glitch, faults police

On Monday, the Federal High Court in Abuja lifted freezing orders placed on four bank accounts linked to a N21 billion system glitch from 2023. Justice Emeka Nwite ruled in favor of the defendants, A.O. Ochogwu Esq., arguing that the police had suppressed crucial information when they applied for an ex parte freezing order. Nairametrics reports that this case is part of a wider investigation into fraudulent withdrawals from Flutterwave accounts at Wema Bank, which reportedly occurred due to a system glitch between October 12 and 13, 2023.

The four defendants, through their legal team, challenged the ex parte order on the grounds of non-disclosure by the police, citing a similar court's previous discharge of restrictions imposed on them. Justice Nwite's decision is based on the principle that court orders are not allowed to stand if it is proven that judicial discretion was made based on incomplete factual information.

The court resolved the matter in favor of the four defendants, ordering the discharge of all freezing orders, restrictions, liens, Post-No-Debit instructions, and other encumbrances on their accounts and properties. The glitch led to 9,633 erroneous transactions on Flutterwave's POS platform that day, totaling an estimated N21.2 billion in exposure.

Despite this, Flutterwave was able to preserve N7.2 billion by working with banks to restrict affected accounts. The Inspector General of Police had stated that his team arrested some suspected POS agents and initiated investigations and litigation against them. However, the defendants' lawyers claimed that an earlier order unfreezing their accounts, issued by Justice Liman, remained valid and had not been appealed.

They accused the police of abusing the judicial process and engaging in forum shopping. This case is not isolated, as other companies, such as Access Bank Plc and fintech firm Moniepoint, have also faced significant fraud incidents resulting in litigation. In 2025, a staff member from Access Bank was accused of accessing the bank's server through a private laptop, causing a N5 billion fraud.

In August 2026, the Federal High Court ordered 12 commercial banks and six fintech platforms to freeze about 69 accounts linked to fraudulent and unauthorized credit transactions.