By Newsshelve Correspondent.
A Federal High Court in Lagos has penalized Access Bank Plc for freezing a customer’s account without a valid court order.
Justice Ayokunle Faji ruled that the bank’s action was illegal and awarded damages against both Access Bank and the Economic and Financial Crimes Commission (EFCC).
The customer, Ganiyu Olawale Toheeb, had his account frozen from February 2 to March 8, 2023, based solely on the EFCC’s directive.
Toheeb sued Access Bank and the EFCC, claiming that the bank acted unlawfully by freezing his account without a court order.
Justice Faji dismissed the EFCC’s preliminary objection and ruled in favor of the plaintiff. The judge held that the EFCC Act does not authorize a bank to freeze an account without a court order and that Access Bank acted unlawfully.
The court awarded N300,000 in general damages against each of the defendants, Access Bank and the EFCC, for unlawfully withholding the customer’s funds for over a month.
The ruling highlights the importance of banks adhering to due process and obtaining valid court orders before freezing customer accounts.
It also underscores the need for regulatory agencies like the EFCC to follow proper procedures when investigating financial crimes.
The court’s decision is a significant victory for customers’ rights and serves as a reminder to financial institutions and regulatory agencies to respect the rule of law and protect individual rights.
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