Zenith Bank Plc has been ordered to pay N85 million in damages for unlawfully freezing a customer’s bank account based on an invalid court order. The ruling was delivered by Justice Bature, highlighting the bank’s failure to verify the legitimacy of the order before restricting the customer’s access to funds.
The plaintiff in the case, Paulyn O. Abhulimen, SAN, trading under the name and style of Abhulimen & Co, filed the suit marked FCT/HC/CV/2194/2024, naming Zenith Bank and the Nigeria Police Force (NPF) as the first and second defendants, respectively. The suit challenged the illegal freezing of the claimant’s account which caused significant distress and financial difficulties.
In the judgment, Justice Bature stated:
“The defendants are hereby ordered to jointly and severally pay the sum of N60 million to the claimant as general damages for the embarrassment, psychological trauma, financial distress, emotional stress, and grave inconveniences suffered by the claimant due to the defendants’ actions. The defendants are hereby ordered to jointly and severally pay the sum of N25 million to the claimant as cost of this action.”
This landmark judgment sends a strong message to banks and law enforcement agencies on the necessity of adhering strictly to legal protocols. The bank’s action of freezing the account without a valid court order was deemed unlawful and harmful to the claimant.
Zenith Bank has since apologized to the customer and pledged to strengthen its internal verification processes to prevent similar incidents. The Nigeria Police Force was also implicated for their role in enforcing the invalid order.
Consumer protection groups have praised the judgment, viewing it as a victory for customers’ rights and a warning to financial institutions about the consequences of ignoring due process. The case underscores the importance of balancing security and compliance with respect for individual rights in the banking sector.
As this ruling reverberates across the Nigerian financial landscape, it emphasizes that banks must ensure all legal documents are thoroughly vetted before taking actions that affect customers’ finances, safeguarding against unwarranted harm and legal repercussions.
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