The Court of Appeal in Abuja has affirmed an N85 million judgment against Zenith Bank and the Nigeria Police Force for unlawfully freezing a customer’s account based on an invalid court order.
In a unanimous decision on Monday, a three-member panel led by Justice Adebukola Banjoko dismissed Zenith Bank’s appeal marked CA/ABJ/CV/1335/2025 as lacking merit.
The appeal sought to set aside the July 16, 2025 judgment of the FCT High Court delivered by Justice S. U. Bature.
The suit, FCT/HC/CV/2194/2024, was filed by Senior Advocate, Paulyn O. Abhulimen, through Akinlolu Kehinde SAN & Partners LP, on behalf of her law firm, Abhulimen & Co.
Abhulimen told the court that in early 2024 she was unable to access or transact on the firm’s account domiciled at Zenith Bank’s Transcorp Hilton branch, 63 Usuma Street, Maitama, Abuja.
After inquiries, a bank official, Obi Okafor, informed her that a Post-No-Debit, PND had been placed on the account. On March 13, 2024, the bank said it acted on an order obtained by the NPF from a Chief Magistrate Court in Mararaba Gurku, Nasarawa State.
Justice Bature ruled that Zenith Bank and the Police acted unlawfully.
Key findings:
- No Jurisdiction: The Magistrate Court in Nasarawa lacked both territorial and substantive jurisdiction to freeze a bank account. Under Section 251 of the 1999 Constitution, banking matters fall exclusively under the Federal High Court, while banker-customer disputes are within the Federal High Court, State High Courts and FCT High Court.
- Bank’s Negligence: As a major financial institution with a legal department, Zenith Bank “ought not to have obeyed the court order in the first place.” The judge said it was illogical and a betrayal of banker-customer trust.
- Breach of Duty of Care: The bank failed to notify the customer before placing the PND. Abhulimen only discovered it when she tried to use the account. “The failure… amounts to negligence… and hence, a breach of duty of care and due diligence owed to the claimant.”
- The court declared that an order to freeze a bank account cannot validly be granted ex-parte to last indefinitely, and that the Mararaba Gurku Magistrate Court had no power to make such an order on Account Number: 1012272348.
Justice Bature ordered:
-Immediate unfreezing of the account and vacation of the PND.
-Public apology to be published in two national newspapers and on Zenith Bank’s website.
-N60 million as general damages for embarrassment, psychological trauma, financial distress, emotional stress and inconvenience.
-N25 million as cost of the action.
The N85 million is to be paid jointly and severally by Zenith Bank and the NPF.
Appeal Court verdict
Upholding the decision, the Appeal Court agreed that the bank had no legal basis to act on the Magistrate Court order. It held that Zenith Bank’s appeal had no merit and dismissed it in its entirety.
The judgment is expected to reinforce banking compliance standards and serve as a warning to financial institutions against executing defective court orders without due diligence.
Neither Zenith Bank nor the NPF had filed a further appeal as of press time.