Step-by-Step Guide: How Nigerians Can Recover Money Sent to the Wrong Bank Account

Cases of mistaken money transfers are rising across Nigeria as digital and mobile banking transactions continue to increase. With over ₦572 trillion worth of cashless transactions processed in the first seven months of 2024, according to the Nigeria Interbank Settlement System (NIBSS), incidents of sending money to the wrong account are almost inevitable.

Financial experts warn that while some victims manage to recover their money, many others lose it permanently due to delay, ignorance, or failure to follow the proper procedure. Below is a step-by-step guide on how Nigerians can recover funds mistakenly transferred to wrong bank accounts.

1. Report Immediately to Your Bank
The first and most important step is to act quickly. Visit your bank’s branch or use its official complaint channels to report the mistaken transfer. Provide full transaction details, including:

• Account number and name you mistakenly transferred to
• Amount transferred
• Date and time of transaction
• Evidence of payment (debit alert or statement)

Banks are required by the Central Bank of Nigeria (CBN) to investigate and take action once such a report is filed.

2. Recipient’s Bank Places a Post No Debit (PND)
If the complaint is valid, the recipient’s bank can place a Post No Debit (PND) on the account, temporarily restricting the owner from withdrawing or transferring funds. This is done while investigations are ongoing.

3. Await Recipient’s Consent or Court Order
If the recipient admits the error, the bank can reverse the funds directly. However, if the recipient refuses or becomes uncooperative, the sender must approach the court to obtain a reversal order.

4. Seek Legal Redress When Necessary
Depending on the amount involved, the case can be filed in the Magistrate Court, District Court, or High Court. You will need to provide:

• Proof of transaction (bank statement or debit alert)
• Complaint letter to your bank
• Bank’s investigation report
  Once a valid court order is obtained and served on the recipient’s bank, the reversal becomes mandatory.

5. Prevention is Better Than Cure
Financial experts advise Nigerians to always double-check account details before making transfers, especially to unfamiliar accounts or fintech wallets. Using “beneficiary confirmation” services provided by most banks can also help reduce costly errors.

While Nigerian laws and banking regulations make provisions for recovering funds transferred in error, success depends largely on how fast the customer acts and whether the recipient cooperates. Delay often reduces the chances of recovery, making vigilance and careful confirmation of account details the best safegurd.