The Court of Appeal in Abuja has affirmed an ₦85 million fundamental rights judgment against Zenith Bank Plc and the Nigeria Police Force for the unlawful, ex-parte freezing of a customer’s corporate bank accounts.
The Court of Appeal in Abuja has upheld an ₦85 million judgment against Zenith Bank Plc and the Nigeria Police Force for unlawfully freezing a law firm’s bank account based on an invalid magistrate court order.
A three-member panel led by Justice Adebukola Banjoko unanimously dismissed Zenith Bank’s appeal, ruling that the financial institution acted in bad faith and breached its duty of care to its customer.
The suit was originally filed by Paulyn Abhulimen, Senior Advocate of Nigeria (SAN), on behalf of her law firm, Abhulimen & Co., after discovering in early 2024 that the firm could no longer access or conduct transactions on its account.
When the firm queried the restriction, a bank official revealed that a “Post No Debit” order had been placed on the account. Zenith Bank claimed it froze the funds after receiving an ex parte order obtained by the police from a Chief Magistrate’s Court sitting in Mararaba Gurku, Nasarawa State.
In the July 2025 High Court judgment now affirmed by the appellate court, Justice S.U. Bature ruled that magistrate courts lack the legal authority to grant orders freezing bank accounts.
Under Nigerian constitutional law, disputes and directives concerning commercial bank accounts fall within the exclusive jurisdiction of the Federal and State High Courts.
The court questioned why the police and bank relied on an order from a magistrate court in Nasarawa State for an account registered at a Zenith Bank branch in Abuja. Justice Bature noted that Zenith Bank’s internal legal team should have recognized that the order was legally invalid and refused to act on it.
Furthermore, the court faulted the bank for failing to notify the customer when the restriction was applied, ruling that the omission amounted to gross negligence.
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By dismissing Zenith Bank’s appeal, the Court of Appeal upheld all key directives issued by the lower court. The appellate ruling requires Zenith Bank to immediately unfreeze the account belonging to Abhulimen & Co. and publish an unreserved written apology to the firm in two national newspapers as well as on its official website.
Additionally, Zenith Bank and the Nigeria Police Force are jointly required to pay ₦60 million in general damages for the psychological stress, embarrassment and financial distress caused to the customer. The court also awarded an extra ₦25 million in litigation costs against both defendants, bringing the total financial penalty to ₦85 million.
Legal experts note that the ruling reinforces a crucial precedent; commercial banks cannot blindly enforce court orders obtained from jurisdictions that lack proper legal authority to freeze customer accounts.
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Praise fortune is a tech analyst and journalist based in Nigeria, Her work serves as a vital bridge between complex corporate maneuvers and the everyday reader, breaking down high-stakes financial, regulatory, and technological shifts across the African continent into clear highly readable narratives. With a deep focus on fintech, traditional banking transformation and digital infrastructure, she have become a dedicated analyst of the architects building Africa’s digital economy.
