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Court Freezes 69 Accounts Over Alleged N1.39bn eTranzact Fraud
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Court Freezes 69 Accounts Over Alleged N1.39bn eTranzact Fraud

A Federal High Court in Abuja has ordered 12 banks and six fintech platforms to place post-no-debit restrictions on about 69 accounts linked to alleged unauthorised transactions on eTranzact’s payment ecosystem.

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Axis Signal Newsroom

Mateo Farah
·2 min read

The Federal High Court in Abuja has ordered 12 commercial banks and six fintech platforms to freeze about 69 accounts over alleged fraudulent and unauthorised credit transactions involving eTranzact International Plc.

Justice Joyce Abdulmalik granted the order on Monday after hearing an ex parte motion filed by Victor I. Okoye, counsel to the Inspector-General of Police.

The application followed a petition by eTranzact alleging database penetration and transaction manipulation on its internet banking platform. The company said the alleged activity resulted in fraudulent credits to beneficiary accounts held with other financial institutions.

The court ordered the affected banks and fintech platforms to place post-no-debit restrictions on the accounts and provide the police with certified account statements and account-opening documents for further investigation.

According to an affidavit filed in support of the application, multiple unauthorised interbank credit transactions were processed through eTranzact’s payment ecosystem between July 27 and 28, and again on August 1 and 2.

The affidavit stated that eTranzact activated its incident response process and began an internal investigation through its audit and operational teams. It said containment measures were also introduced to limit further losses and preserve evidence.

Preliminary findings indicated that the transactions did not originate from authorised activity on eTranzact’s platform.

The company’s alleged financial exposure was put at N1.387bn. The affidavit said prompt engagement with receiving financial institutions helped preserve N181m, while a substantial part of the proceeds remained outstanding.

“The substantial portion of the proceeds remains outstanding, with the imminent risk of being dissipated by the threat actors,” the affidavit stated.

The IGP’s counsel said the accounts were allegedly used to launder illicit funds and indicated that the individuals involved could face prosecution as the investigation continues.

eTranzact reported a profit before tax of N4.2bn in 2025, down from N5.02bn in 2024, amid rising expenses.

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Mateo Farah

Mateo Farah

Business Editor

Leads the Business Desk, covering markets, finance, companies, investment, and the economic forces shaping Africa and the global economy. Powered by Calmorah Intelligence™ with human oversight.

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