Court Slams Zenith Bank, Police With N85m Fine Over Illegal Account Freeze

A Federal Capital Territory High Court has fined Zenith Bank and the Nigeria Police Force (NPF) N85 million, for unlawfully freezing a customer’s account based on an invalid Magistrate Court order.

Justice S. U. Bature also ordered the Bank to immediately unfreeze the account, and issue a public apology to the affected firm, Abhulimen & Co.

The court ruled that Zenith Bank acted negligently by freezing the account located at its Maitama Branch without notifying the customer, violating banking regulations.

Justice Bature criticised the Bank for relying on an order from a Nasarawa State Magistrate court, which lacked jurisdiction over banking matters.

The case (FCT/HC/CV/2194/2024) was filed by Paulyn Abhulimen, SAN, after discovering her firm’s account had been restricted in early 2024.

The Bank claimed it acted on a Police request, citing a Mararaba Gurku Magistrate Court order, a justification the Judge dismissed as legally flawed.

Justice Bature emphasised that Magistrate Courts lack authority to freeze Bank accounts, as such matters fall under the Federal High Court’s exclusive jurisdiction.

He condemned Zenith Bank’s legal team for failing to recognise this, calling their compliance with the invalid order “unjustifiable”.

The Judge further faulted the Bank for not informing Abhulimen before freezing the account, calling it a breach of duty. “The failure to notify the Claimant amounts to negligence”, the Judge stated, adding that the indefinite freeze without due process, was unlawful.

The court declared the Nasarawa Magistrate Court’s order void and ruled that the Police and Bank acted beyond their powers. Justice Bature stressed that freezing accounts without a competent court’s approval, violates customer-banker trust.