How to Recover Mistaken Bank Transfers in Nigeria: A Legal Guide

Mistaken or erroneous bank transfers are becoming increasingly common in Nigeria, especially with the widespread use of digital banking platforms. Whether it’s a wrong account number or a mix-up in payment details, reclaiming your funds can be complex. At O.I.D. Legal Consult, we understand the urgency and frustration that comes with such financial errors, and we’ve created this comprehensive guide to help you understand your legal options.

Step 1: Immediately Notify the Bank

If you mistakenly transfer funds to the wrong account, the first and most crucial step is to alert your bank and the recipient’s bank as soon as possible. Your written complaint should include:

• The date and time of the transaction

• Amount transferred

• The recipient’s account details (if known)

• Your own account information

• Evidence such as transaction receipts or screenshots

Once notified, the bank may temporarily freeze (Post No Debit) the recipient’s account to prevent further withdrawals. However, the bank cannot refund your money without the recipient’s approval or a court order.

🧠 Legal Insight: In Diamond Bank Ltd v. P.I.C. Ltd (2009) LPELR-8155(CA), the court held that banks must not reverse funds without either the customer’s consent or a court directive. Doing so amounts to an unlawful debit.

Step 2: Attempt an Amicable Resolution

If the mistaken recipient can be contacted and is cooperative, they can authorize a reversal through their bank. This is the simplest and fastest route.

However, if the recipient is uncooperative, evasive, or disputes the claim, legal action becomes necessary. Time is of the essence, so it's wise to consult your lawyer immediately.

Step 3: Obtain a Court Order for Refund

When amicable settlement fails, legal intervention is the next step. Your lawyer will file a formal application (typically a motion on notice) at the appropriate court, supported by:

• An affidavit detailing the mistaken transfer

• Proof of the erroneous transaction (e.g., bank statements)

• Correspondence with the bank

• Any other supporting documents

🧠 Legal Insight: In UBA Plc v. Jargaba (2007) 11 NWLR (Pt. 1045) 247, the court emphasized that customer accounts cannot be altered without due process and judicial oversight.

Step 4: Determine the Right Court

Jurisdiction depends on both the transaction value and the geographical location of the transaction. Here’s a practical guide:

In Lagos State:

• Transactions below ₦10 million: Magistrate’s Court

• Transactions above ₦10 million: High Court of Lagos State

In Abuja (FCT):

• Transactions under ₦5 million: Magistrate’s Court

• Above ₦5 million: High Court of the FCT

Your legal team will help determine the appropriate court for swift resolution.

Step 5: Essential Elements to Prove in Court

For the court to issue an order for refund, you must demonstrate the following:

• ✅ Proof of payment: Your bank statement showing the debit

• ✅ No legitimate transaction: Evidence that the recipient was not entitled to the funds

• ✅ Efforts to recover: Copies of complaints filed with the bank

• ✅ Recipient details: Bank account or personal data, where available

🧠 Legal Insight: The case of First Bank of Nigeria Plc v. Excel Plastic Industry Ltd (2003) 13 NWLR (Pt. 837) 412 affirms that the claimant must prove that the payment was truly made in error.

Step 6: Ensure Proper Service of Court Documents

All parties involved—especially the recipient—must be properly served with court documents. If the recipient’s address is unknown, your lawyer can request substituted service, such as through newspaper publication.

🧠 Legal Insight: As held in Emeka v. Okoroafor (2017) LPELR-41737(SC), improper service can lead to dismissal or reversal of the judgment on appeal.

Avoid Involving the Police

It's important to note that the police do not have the legal authority to order a reversal of a bank transaction. These are civil matters best handled through the court system.

🧠 Legal Insight: In Nigerian Police Force v. Ogheneovo (2010) 1 NWLR (Pt. 1185) 403, the court ruled that police involvement in civil banking matters is improper and outside their jurisdiction.

Conclusion:

Recovering money from a mistaken bank transfer in Nigeria is a structured legal process. It requires quick action, accurate documentation, and proper legal representation. At O.I.D. Legal Consult, our dispute resolution team is equipped to guide you through every step, ensuring your rights are protected and your funds recovered in line with Nigerian law.

📞 Need help recovering an erroneous transfer? Contact us today at:

📧 oidlegalconsult.outlookcom🌐 www.oidlegalconsult.com

Disclaimer: This post is for informational purposes only and does not constitute legal advice. For legal counsel specific to your case, please consult O.I.D. Legal Consult directly.