Digital banking has transformed payments in Nigeria. Instant transfers, USSD banking, and mobile apps have made it easier than ever to move money between accounts. However, speed also increases the risk of human error. A single incorrect digit can result in funds being sent to the wrong recipient.

Understanding how to recover wrongly transferred money in Nigeria is essential for individuals, SMEs, importers, distributors, and corporate finance teams. Acting quickly and following the correct process significantly improves the chances of recovery.

This guide explains the steps involved, the regulatory framework, and how businesses can reduce the risk of payment errors.

Why Wrong Transfers Happen in Nigeria’s Banking System

Wrong transfers typically occur due to:

• Inputting an incorrect account number

• Selecting the wrong beneficiary from a saved list

• Bank name mismatch

• Network glitches during USSD or mobile banking transactions

• Manual processing errors in corporate finance departments

Although Nigerian banks use account name confirmation systems, errors still occur, particularly when businesses process large volumes of supplier payments or cross-bank transfers.

For companies involved in import/export, wholesale distribution, and FMCG trading, payment errors can disrupt supply chains, delay shipments, and strain supplier relationships.

Immediate Steps to Recover Wrongly Transferred Money in Nigeria

Time is critical. The sooner action is taken, the higher the likelihood of freezing and reversing the funds.

1. Contact Your Bank Immediately

Report the transaction to your bank through:

• Customer care hotline

• Official email channel

• Physical branch visit

Provide the following details:

• Transaction date and time

• Amount transferred

• Recipient account number

• Recipient bank name

• Transaction reference number

Banks can initiate a “post-no-debit” instruction or place a temporary hold if the funds have not yet been withdrawn.

2. Submit a Formal Complaint

You may be required to complete a transaction dispute form. For corporate accounts, the finance department may need to submit a written letter on company letterhead.

3. Interbank Communication

If the recipient uses another bank, your bank will notify the receiving bank. The receiving bank will then contact the unintended beneficiary to request consent for reversal.

Can You Automatically Recover Wrongly Transferred Money in Nigeria?

Recovery is not automatic.

Under Nigerian banking regulations, if money is mistakenly credited to someone’s account, the bank cannot remove it without the account holder’s consent, unless fraud is involved.

If the recipient cooperates, the process is usually resolved within days. If the recipient refuses or withdraws the funds, recovery may require:

• Escalation to the Central Bank of Nigeria (CBN)

• Filing a petition through the bank

• Legal action

Legal Options to Recover Wrongly Transferred Money in Nigeria

If the unintended recipient refuses to return the funds, you may pursue legal remedies.

Civil Recovery Action

A court can order repayment if it is proven that:

• The transfer was made in error

• The recipient was unjustly enriched

• There was no contractual basis for the payment

Criminal Implications

If the recipient knowingly spends funds sent in error and refuses repayment, it may constitute fraudulent conversion under Nigerian law.

Businesses handling large transactions—such as import payments, supplier settlements, or distributor transfers—should consult legal professionals quickly in high-value cases.

How Businesses Can Prevent Wrong Transfers

For companies in wholesale distribution, logistics, or cross-border trade, prevention is far more cost-effective than recovery.

Strengthen Internal Controls

• Dual authorization for payments

• Mandatory account name verification

• Supplier account confirmation before payment release

• Segregation of duties within finance teams

Use Verified Beneficiary Databases

Maintain an updated supplier database and require written confirmation before changing account details.

Implement Structured Payment Workflows

Enterprise accounting systems with approval hierarchies reduce manual errors.

For companies managing multi-supplier payments across Nigeria and international markets, working with experienced trade partners can reduce operational risks.

The Business Impact of Payment Errors

Wrong transfers can have serious commercial consequences:

• Delayed shipment of goods

• Damaged supplier relationships

• Inventory shortages

• Disrupted distribution cycles

• Cash flow strain

In sectors such as FMCG, agricultural commodities, or bulk imports, a single delayed payment can interrupt the entire supply chain.

Professional supply chain coordination and financial process management are essential to minimize these risks.

How Wigmore Trading Supports Businesses with Payment and Trade Efficiency

While banks handle the formal process to recover wrongly transferred money in Nigeria, businesses can reduce exposure to such issues by improving operational structures.

Wigmore Trading supports companies across Africa with:

• Structured sourcing and supplier verification

• Trade documentation management

• Cross-border payment coordination

• Logistics and customs clearance

• Supply chain planning

By working with experienced trade intermediaries, businesses reduce administrative errors, improve communication with suppliers, and maintain stronger financial controls.

For importers and distributors operating in complex African markets, professional trade management adds an extra layer of operational security.

Key Takeaways on How to Recover Wrongly Transferred Money in Nigeria

• Act immediately and notify your bank

• Provide full transaction details

• Recovery depends on recipient cooperation

• Legal options exist if funds are not returned

• Prevention through strong financial controls is critical for businesses

In Nigeria’s fast-moving digital banking environment, awareness and quick action are essential. For businesses, structured payment systems and trusted trade partners significantly reduce risk.

Wigmore Trading can help. Contact Wigmore Trading today to streamline your sourcing.