A dilemma in Nigeria’s cashless economy is playing out in bank accounts and courtrooms across the country, where people who receive money accidentally are increasingly choosing to keep the funds rather than return them, even at the risk of jail time. Reports show that mistaken digital transfers, often caused by fat-finger errors or system glitches, are now triggering legal battles that spotlight gaps in enforcement, digital literacy and bank processes.
In one widely cited case, a schoolteacher named Richard Okoye thought he received what appeared to be an unexpected N300,000 credit in his account. Initially uncertain, he eventually withdrew and spent much of the money before the bank discovered the error and demanded a refund. Faced with bank pressure and threats of arrest, Okoye ultimately returned the funds to avoid prosecution, an outcome his family described as “eye-opening.”
But not all recipients comply so readily. In a high-profile matter that ended in court, Kingsley Ojo unlawfully retained more than N1.3bn that was mistakenly credited to his account due to a banking system glitch. Rather than reporting the error or seeking a refund, Ojo transferred significant portions of the money to relatives, spent large sums on building projects and funded an ostentatious lifestyle. The Economic and Financial Crimes Commission (EFCC) later recovered hundreds of millions, but Ojo was convicted by an Edo State High Court and given an option of one year in prison or a N5m fine, along with an order to pay back more than N272m.
Other cases reveal a similar pattern. In Jos, Plateau State, an agricultural firm’s managing director was arrested after allegedly moving tens of millions of naira credited to his company in error into his personal accounts instead of reporting it. In another instance, a Nigerian Air Force officer was arraigned for withdrawing and spending part of N20m his employer accidentally paid into his account.
Experts say that receiving money by mistake is not automatically a crime, but refusing to return it can be treated as fraudulent conversion, exposing recipients to criminal charges under Nigeria’s Penal and Criminal Codes, which carry up to five years’ imprisonment and orders for restitution.
Digital errors are becoming more common as mobile and online banking use rises. Factors include interface design problems, users accidentally adding extra zeros, selecting the wrong saved contact, or similarity in account numbers. These mistakes place pressure on both banks and customers, with some senders forced to pursue legal action when recipients refuse refunds.
Banks have procedures to recover accidental transfers, including reporting the issue, placing temporary holds on funds and escalating recalcitrant cases to law enforcement. But critics argue that slow responses, limited awareness of reporting channels, and users’ reluctance to comply contribute to growing disputes over wrongful credits.
