Court Fines Zenith Bank, Police N85m for Freezing Customer’s Account with Invalid Order
A High Court of the Federal Capital Territory (FCT) has slammed a combined fine of ₦85 million on Zenith Bank Plc and the Nigeria Police Force (NPF) for unlawfully freezing a customer’s account using an invalid court order.
Justice S. U. Bature, in a landmark judgment, condemned the bank’s action as a breach of trust and a violation of the banker-customer relationship. The court ordered Zenith Bank to immediately lift the Post No Debit (PND) restriction placed on the account of Abhulimen & Co, domiciled at its Transcorp Hilton branch in Abuja, and issue a public apology in two national newspapers and on its website.
The dispute arose when Paulyn O. Abhulimen (SAN), representing her firm Abhulimen & Co, discovered in early 2024 that her account had been frozen without prior notice. Upon inquiry, a bank official, Obi Okafor, disclosed that the freeze was based on an ex-parte order obtained by the NPF from a Chief Magistrate Court in Mararaba Gurku, Nasarawa State.
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Justice Bature ruled that the Magistrate Court lacked both territorial and substantive jurisdiction to issue such an order. He cited Section 251 of the 1999 Constitution (as amended), which places banking-related matters under the exclusive jurisdiction of the Federal High Court, and affirmed that Magistrate Courts cannot entertain applications to freeze bank accounts.
“The legal department of Zenith Bank, being staffed by lawyers, should have known better than to act on an invalid order,” the judge stated.
The court further faulted Zenith Bank for failing to notify the claimant about the freeze, describing it as a breach of duty of care and due diligence.
“The failure to inform the claimant of the state of affairs on her account amounts to negligence,” Justice Bature held.
He emphasized that ex-parte orders to freeze bank accounts cannot be indefinite and must be issued by courts with proper jurisdiction.
Justice Bature awarded ₦60 million in general damages to Abhulimen & Co for the embarrassment, psychological trauma, financial distress, and emotional stress caused by the unlawful freeze. An additional ₦25 million was granted as the cost of litigation.
The judge also ordered the immediate removal of the PND restriction on the claimant’s account and directed Zenith Bank to publish a written apology in two national newspapers and on its website.
This ruling serves as a stern warning to financial institutions and law enforcement agencies against overstepping legal boundaries and violating customer rights.
By PRNigeria
