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Banking | Finance

Court Slams Access Bank with N7m Damages Over Unlawful Account Restriction

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MICHAEL AKINOLA

Justice Ayokunle Faji of the Federal High Court sitting in Lagos has awarded N7 million in damages against Access Bank Plc for breaching the fundamental human rights of a customer, Mrs. Oluwasesan Ifeoluwa Bridget.

In a judgment delivered on Monday, the court granted reliefs 1, 2, 3, 4, 5, and 8 sought by the applicant’s counsel, Barrister, Farid Giwa.

It found that the bank acted unlawfully by placing a Post No Debit (PND) restriction on Bridget’s account without a valid court order.

According to the court, Access Bank failed to dispute the applicant’s claim that the PND was placed on her account on July 1, 2023, two weeks before the purported court order dated July 16, 2023, was allegedly obtained from a Magistrate Court in Masaka, Nasarawa State.

Justice Faji held that the prolonged restriction without judicial backing amounted to a violation of Bridget’s constitutional right to property as guaranteed under Section 44(1) of the 1999 Constitution.

The court further noted that the Certified True Copy (CTC) of the alleged court order was not tendered in evidence, despite being a public document.

Even if it had been presented, the judge held that the order was addressed to non-juristic persons “Access Bank Ltd” and “Manager Access bank”, instead of the correct legal entity, Access Bank Plc.

“The bank, having a legal department, ought to have known that the order was improperly drawn and could not be legally enforced,” the court stated.

The applicant, who holds account number 0054695391 with Access Bank, discovered on July 1, 2023, that her account had been frozen without notice, leaving her unable to access her funds.

Repeated visits to the bank yielded no resolution, as staff claimed it was an internal issue.

In September 2023, Bridget survived an assassination attempt that resulted in severe injuries, including fractured legs and spinal damage.

She spent over eight months in a wheelchair and was unable to fund her medical treatment due to the frozen account, causing extreme financial and emotional distress.

Upon partial recovery in September 2024, Bridget resumed efforts to unfreeze her account, but met continued delays.

In a letter dated October 7, 2024, her legal representatives demanded that the bank lift the restriction, but the bank failed to comply.

In response to the lawsuit, Access Bank argued that the PND was valid, claiming that the Inspector General of Police had obtained a court order on July 16, 2023, against “Access Bank Ltd” and “Manager Access Bank.”

They further argued that the dispute was not a fundamental rights issue but merely a banker-customer disagreement.

However, the applicant’s counsel ,
Barr Farid Giwa, maintained that the order was directed at non-existent entities, was not certified, and could not justify the prior restriction placed on the account.

Justice Faji agreed with the applicant’s position and held that the bank’s actions were unconstitutional and unjustified, awarding N7 million in damages for the violation of her rights.

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Funsho Arogundade

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