Just In: Court Orders Zenith Bank, Police to Pay N85m for Unlawfully Freezing Customer’s Account

 

Firstsitenews-The Federal Capital Territory (FCT) High Court has ordered Zenith Bank Plc and the Nigeria Police Force (NPF) to pay a total of ₦85 million in damages for unlawfully freezing a customer’s account using an invalid magistrate court order.

In the judgment delivered by Justice S.U. Bature, the court directed Zenith Bank to immediately lift the restriction placed on the account, domiciled at its branch on 63 Usuma Street, Maitama, Abuja, and to publish a public apology to the account owner, Abhulimen & Co, in two national newspapers and on the bank’s official website.

Justice Bature ruled that the bank’s decision to freeze the account without notifying the customer was “illogical, unlawful, and a betrayal of the banker-customer relationship.” He criticized the financial institution for relying on an invalid order from a Magistrate Court that had no jurisdiction to issue such directives in banking matters.

 “The failure of the first defendant to inform the claimant of the state of affairs on her account amounts to negligence and a breach of duty of care,” Justice Bature stated.

Court Declares Order Invalid

The court found that the Chief Magistrate Court of Nasarawa State, sitting in Mararaba Gurku, lacked the legal authority to freeze the claimant’s account (Account Number: 1012272348) based on an ex-parte application. Justice Bature stressed that any order to freeze a bank account cannot be granted indefinitely without hearing from the account holder.

The judge ruled that the bank’s failure to promptly inform the claimant about the restriction constituted a serious breach of duty and due diligence.

Damages and Compensation

The court ordered Zenith Bank and the NPF to:

Pay ₦60 million as general damages for the embarrassment, financial distress, emotional stress, and psychological trauma suffered by the claimant.

Pay ₦25 million as the cost of the legal action.

Vacate the Post No Debit (PND) order immediately.

Publish a written apology to the claimant in two national newspapers and on their official websites.

Justice Bature concluded that both defendants acted unlawfully and must bear full responsibility for the harm caused.