Why it is illegal to spend money mistakenly credited to you

• Money mistakenly sent to your bank account is not legally yours to spend, even if the sender made the error.

• Using the funds could lead to repayment demands, lawsuits, account restrictions, or criminal investigations.

• Nigerian law considers knowingly converting another person’s money for personal use a possible offence.

• Chinedu Francis Nwabuisi was convicted for converting ₦21.9 million mistakenly sent to his First Bank account for personal use.

Imagine waking up one morning, checking your bank app and seeing an extra ₦500,000 sitting in your account. No alert from your employer, no explanation from family, no business payment you’re expecting — just money that appeared from nowhere.

For many Nigerians, the first thought might be, “God has finally remembered me.” But before you start planning a new phone, paying debts, or throwing a small celebration, that money could actually land you in serious trouble.

Money mistakenly sent to your account is not yours to keep. Spending it can lead to legal problems, account restrictions, and even criminal charges.

Under Nigerian law, keeping or using money you know was transferred to you by mistake may be treated as unjust enrichment or fraudulent conversion because you are benefiting from someone else’s error without a legal reason.

Simply put, the fact that someone made a mistake while transferring money does not make the money yours.

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Many people assume that once money enters their account, it belongs to them. But banks and the law do not see it that way.

If the sender reports the mistake, the bank can begin a recovery process. If you refuse to return the money or have already spent it, the matter can escalate.

You may face:

• A demand to refund the money: The sender can take legal action to recover the funds.

• Court proceedings: A court may order you to repay the money and possibly cover additional costs.

• Criminal investigation: Knowingly spending money that is not yours could lead to allegations of theft or fraudulent conversion.

• Account restrictions: Your bank account may be frozen while the dispute is investigated.

The Nigerian Criminal Code Act addresses situations where a person dishonestly converts another person’s property for personal use.

Section 383 of the Criminal Code defines theft, while Section 390 deals with fraudulent conversion and related offences involving another person’s property.

So, if you receive money by mistake and decide to treat it as your personal cash, you could be creating a legal problem for yourself.

The safest thing to do is simple: do not touch the money.

Instead:

1. Contact your bank immediately and report the transaction.

2. Keep records of the transfer, including screenshots and transaction details.

3. Follow the bank’s instructions for reversing the payment.

4. Avoid sending the money back directly to a stranger who contacts you, as scammers sometimes use fake mistaken-transfer claims to trick people.

Banks have procedures for handling electronic payment disputes and reversing genuine errors. Cooperating with the process helps protect you from unnecessary trouble.

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A random bank alert can feel like a miracle, especially in a time when many Nigerians are dealing with rising costs and financial pressure.

But that “unexpected blessing” can quickly become a burden if investigations begin and you cannot explain where the money went. 

Like in the case of Chinedu Francis Nwabuisi, who has been sentenced to two years imprisonment after he spent ₦21.9 million that was mistakenly credited to his First Bank account.

The Economic and Financial Crimes Commission (EFCC) secured his conviction after he was found guilty of converting the money to his personal use.

The case was heard before Justice Irele Ifijeh of the Edo State High Court sitting in Benin City, where Nwabuisi was prosecuted by the EFCC’s Benin Zonal Directorate.

According to the EFCC, the money, precisely ₦21,939,237.27, entered Nwabuisi’s account because of a system error at First Bank.

Instead of reporting the unusual transaction or waiting for the bank to resolve the issue, he allegedly spent the funds.

During the trial, prosecution counsel M. S. Dahiru presented two witnesses, including a senior official of First Bank and an EFCC operative. The prosecution also submitted documents to support its case, which were accepted by the court.

However, while defending himself, Nwabuisi said he believed the money was a benefit connected to his Point of Sale (POS) business dealings with the bank.

The court, after reviewing the evidence, rejected his explanation and found him guilty.

Justice Ifijeh sentenced him to two years in prison without an option of fine.

The court also ordered him to refund First Bank Plc the sum of ₦21,939,732.27.

The safest rule is simple: if you were not expecting it, don’t spend it. Report it.