The Federal High Court in Abuja has directed 12 commercial banks and six fintech companies to freeze 69 accounts suspected of being linked to fraudulent transactions involving eTranzact International Plc.
Justice Joyce Abdulmalik issued the post-no-debit (PND) order on Monday after considering an ex parte application submitted on behalf of the Inspector-General of Police.
The application followed a petition by eTranzact over alleged unauthorised transactions involving its payment infrastructure. According to the police, the incident involved suspected database penetration and manipulation of transactions that resulted in fraudulent credits being sent to accounts across different financial institutions.
The court also ordered the affected financial institutions to provide certified copies of account statements and account-opening documents connected to the accounts under investigation.
How the alleged eTranzact fraud happened
According to an affidavit filed in support of the application, multiple unauthorised interbank credit transactions were processed through eTranzact’s payment ecosystem between July 27–28 and again from August 1–2, 2026.
Police said preliminary investigations indicated that these transactions did not stem from any authorised activity on eTranzact’s systems, with an estimated financial exposure of N1.387 billion.
Following the incident, eTranzact reportedly activated its internal incident-response process, deploying its audit and operational teams to investigate the transactions. The company also implemented containment measures aimed at preventing further losses and preserving evidence.
Similar read: Nigeria’s digital payment fraud losses fall from ₦52.26bn to ₦25.85bn, report finds
Authorities stated that engagement with the receiving financial institutions helped preserve approximately N181 million of the funds, though a substantial amount remains unaccounted for, according to the affidavit.
Police informed the court that the remaining funds risk being moved or concealed unless urgent action is taken. The freezing order is therefore designed to prevent transactions on the affected accounts while investigators continue their work.
Banks and fintechs caught in the investigation
The court order covers accounts held across 12 commercial banks and six fintech platforms.
The involvement of fintech platforms underscores how rapidly money can move across Nigeria’s financial system once a fraudulent transaction is initiated. An unauthorised credit originating from one payment infrastructure can pass through several financial institutions before investigators can trace and recover it, making cooperation among banks, fintech companies, payment processors, and law-enforcement agencies critical when investigating suspected financial fraud.
As part of the ongoing investigation, police have requested access to account statements and account-opening documents linked to the affected accounts. The Inspector-General of Police has also indicated that the investigation could lead to the prosecution of individuals found responsible.
Importantly, the court’s order does not establish that the account holders committed fraud. It merely allows investigators to restrict transactions and obtain financial records while the allegations are examined.
eTranzact, a Nigerian electronic-payment company, reported a N4.2 billion profit before tax in 2025, according to previously reported financial results.
The case adds to a growing number of Nigerian financial investigations involving post-no-debit orders, through which courts restrict access to accounts suspected of being connected to alleged financial crimes.
Also read: The enemy inside: How bank staff and fintech insiders fuel Nigeria’s fraud crisis
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