TAJ Bank has suffered another system glitch that resulted in an unauthorized transfer of over N957 million to accounts in 26 different banks and fintech platforms earlier this year. This incident happened in March 2025, nearly a year after a similar glitch moved about N139.6 million from the bank’s system. TAJ Bank initially took legal action at the Federal High Court in Abuja, seeking orders to freeze these accounts and reverse the transfers. The bank claimed the money was illegally debited following the server glitch and asked the court to stop further withdrawals and ensure the funds were returned under Central Bank of Nigeria (CBN) regulations. The bank argued that without these legal protections, it would face serious financial losses caused by customers of the other institutions taking advantage of the flaw. However, the court declined the bank’s request for an interim freezing order in June 2025, stating the involved banks and fintechs deserved to be fully notified. When the case resumed in July, TAJ Bank unexpectedly withdrew the suit and the matter was struck out by Justice Muhammad Umar, with no public explanation for the withdrawal. This latest issue follows a 2024 ruling where an interim freezing order was granted against some fintech entities holding funds stemming from a previous glitch at TAJ Bank. That order required the reversal of N139.6 million until the dispute was resolved. System glitches like this create complex legal challenges for banks and also stress the importance of robust security and better cooperation among financial institutions to protect customers’ funds. Fraud losses in Nigerian banks have sharply increased, with N52.26 billion lost in 2024 alone, mostly through electronic channels. Dr. Tope Fasoranti, an economist and digital transformation consultant, emphasizes the need for safer banking practices, stronger cybersecurity, and joint efforts from all stakeholders to prevent fraud and maintain trust in Nigeria’s digital financial system. The withdrawal of TAJ Bank’s reversal suit leaves questions about the future handling of the N957 million glitch and the protection of affected customers’ assets.

The Islamic Development Bank (IDB) is stepping up efforts to help Nigeria fix electricity problems, committing an active $2 billion portfolio to boost the nation’s power infrastructure. Nigeria’s Minister of Power, Adebayo Adelabu, met with top IDB leaders this week to discuss new ways of tackling Nigeria’s inconsistent energy supply. The meeting, held in Abuja, signals a shift from small, one-off projects to a bigger, program-based approach designed to match Nigeria’s vision for electricity reform. Mr. Alagi Gaye, a senior official from IDB, explained, “Unlike before, the bank now prefers programme-based interventions aligned with Nigeria’s policies.” The bank’s current projects in Nigeria include improvements in energy, transport, agriculture, and education. But with the new engagement framework, the focus is now more on the power sector, an area critical to daily life and economic growth. Minister Adelabu thanked the IDB for its support and highlighted the government’s plans: “Our goal is stable, affordable electricity for all Nigerians. We’re creating frameworks to attract private capital and modernize our grid.” Nigeria’s new Electricity Act (2023) is at the center of these efforts, aiming to open up the sector for more private investment and stronger regulation. Major power projects are already underway, including, the $2.3 billion Presidential Power Initiative (PPI) with Siemens Energy. This project has seen the delivery of 10 power transformers and 10 mobile substations, which are already improving grid reliability. The proposed ‘Super Grid’ project to make the system more robust, supported by the World Bank and African Development Bank (AfDB). But problems remain, especially in distributing power. Despite partial privatization, the government still owns 40% of Nigeria’s electricity distribution companies (DisCos) and wants to work with new partners to boost their performance. A big challenge is metering. Out of over 13 million registered electricity users, only 6 million have meters. To address this, the government has started the Presidential Metering Initiative, aiming to bring in 2 million new meters each year for the next five years. Adelabu also announced the “Mission 300” programme, which focuses on getting power to rural areas through solar mini-grids and home systems. “Our renewables drive is born from necessity, not emissions targets,” he said, emphasizing Nigeria’s need to expand access rather than just reduce carbon emissions. The IDB will review new project studies to find ways to speed up Nigeria’s journey to reliable, affordable electricity for everyone.

Mono’s Abdulhamid Hassan believes open banking will soon outrun traditional card payments in Africa, as Nigeria prepares for a landmark shift in its digital finance landscape. Mono, founded by Hassan in 2020 after his departure from Paystack, has grown quickly. The fintech has processed more than 150 billion transactions for over 7 million users, now serving customers in Kenya and Ghana too. But Hassan says it’s not just about growth, it’s about building something that lasts. Open banking is about letting people and businesses securely share their financial data, if they choose to, with trusted apps and platforms. This makes loans, payments, and other services faster and easier. Before the Central Bank of Nigeria (CBN) officially endorsed open banking, Mono was already connecting banks and businesses through its platform. “Data isn’t just about payments. It’s what will drive the next generation of fintech in Africa,” Hassan said during an interview. CBN plans to officially launch open banking guidelines in August. That’s a huge step, not just for Mono but for the whole ecosystem. According to Hassan, banks in Nigeria have been more open to data sharing than many fintechs. Mono’s platform only shares data with customer permission, a key point CBN’s new rules will reinforce. Hassan said Nigerian banks are leading the way. “Open banking will now make it mandatory for every financial institution to open up their system. That’s exciting,” Hassan explained. The new rules will also create a registry of licensed data providers, making sure only trusted organizations can handle sensitive information. For banks and fintechs worried about security, Hassan said the new regulations address these issues. “There is now a guideline on how to do this properly,” he said. Mono isn’t just sticking to APIs or behind-the-scenes banking tools. With its new Owo API, the company wants to help people send money directly over messaging apps like WhatsApp, no need to leave chats or open banking apps. “We’re using our APIs to build new experiences. When people see how easy it is, they’ll know Mono is powering it. The open banking market will be bigger than card payments in Africa because it covers everything, data, payments, identity” – Hassan said. Notably, Mono is almost profitable, with operations now funded by its revenue. The 40-strong team operates both remotely and from an office once a week. Hassan sees Nigeria as the best environment for fintech in Africa, owing to population, regulatory openness, and the maturity of local banks.