Last month a court ordered 7 banks to transfer to the federal government a combined $793 million, about 2.4 billion Naira being monies collected on behalf of the government.

The federal government had accused the banks, which include Diamond Bank, United Bank for Africa, First Bank, Skye Bank, Fidelity Bank, Sterling Bank and Keystone Bank, of withholding the money that would have been transferred to the Treasury Single Account.

But on Tuesday, the government said it now wants to settle amicably with the banks by withdrawing its case to settle out-out-court.

The banks concerned had earlier denied owing the government money.

Also Read: SHOCKING! 2.40 Billion Naira Stolen From Banks In 2016

Some said they had paid what was due to the government.

The court is due to rule on the case on Wednesday but government’s lawyer, Yemi Akinseye-George, however, told the court on Tuesday the government would instead seek an out-of-court settlement in the matter.

"The government has decided to withdraw the case," he told the court without elaborating.

Several of the lenders have said they have remitted all funds due to government.