Zenith Bank court ruling awards ₦85 million to customer after unlawful account freeze, reinforcing legal limits and customer rights

Zenith Bank court ruling has delivered a resounding victory for a customer whose account was unlawfully frozen, with the High Court of the Federal Capital Territory ordering a combined ₦85 million payout from Zenith Bank Plc and the Nigeria Police Force.

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In a landmark judgment, Justice S. U. Bature condemned the freezing of Abhulimen & Co’s account using an invalid ex-parte order from a Magistrate Court lacking jurisdiction.

The judge emphasized that Section 251 of the 1999 Constitution places banking disputes under the Federal High Court’s authority, making the order void.

The court found that Zenith Bank’s legal department should have recognized the invalidity of the order and faulted the bank for failing to notify the account holder — a lapse described as both negligent and a breach of duty of care.

Paulyn O. Abhulimen (SAN) had discovered the freeze in early 2024, prompting inquiries that revealed the action stemmed from a Nigeria Police Force request. The court ruled that the indefinite Post No Debit restriction was unlawful and must be lifted immediately.

Justice Bature awarded ₦60 million in general damages for embarrassment, psychological trauma, and financial distress, plus ₦25 million in litigation costs.

He also ordered Zenith Bank to issue a public apology in two national newspapers and on its website.

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This decision sends a powerful message to financial institutions and law enforcement agencies: customer rights are non-negotiable, and overstepping legal boundaries will not be tolerated.