Zenith Bank
Abuja High Court has imposed a N85 million fine on Zenith Bank Plc for unlawfully freezing the account of Abhulimen & Co, relying on an invalid court order issued by a Magistrate Court lacking jurisdiction.
Justice S. U. Bature, in a judgment delivered on July 16, 2025, ordered the bank to immediately lift the restriction on the account, located at its branch at 63 Usuma Street, Maitama, opposite Transcorp Hilton Hotel, Abuja.
The court further mandated Zenith Bank to issue a public apology to the claimant in two national newspapers and on its official website.
The ruling, with its certified true copy made available to journalists on Thursday, stemmed from a lawsuit (FCT/HC/CV/2194/2024) filed by Paulyn O. Abhulimen, SAN, operating as Abhulimen & Co, against Zenith Bank and the Nigeria Police Force (NPF) as the first and second defendants, respectively. Represented by Kehinde & Partners LP, Abhulimen alleged that in early 2024, she discovered her firm’s account was inaccessible due to a post-no-debit (PND) restriction placed by Zenith Bank.
Upon inquiry, she was informed by the bank’s account officer, Obi Okafor, that the restriction was based on a March 13, 2024, order from a Chief Magistrates Court in Mararaba Gurku, Nasarawa State, obtained by the NPF.
Justice Bature ruled that the Magistrate Court lacked both territorial and substantive jurisdiction to issue such an order.
“The claimant’s account is domiciled in Zenith Bank’s Transcorp Hilton branch in Abuja, and the NPF is also based in Abuja.
The decision to seek an order from a Nasarawa State Magistrate Court is incomprehensible,” the judge stated. He further noted, “Section 251 of the 1999 Constitution (as amended) clearly assigns matters relating to banks and banker-customer disputes to the Federal High Court, State High Courts, and the FCT High Court, not Magistrate Courts.”
The court criticized Zenith Bank’s Legal Department for acting on an invalid order, stating, “The bank’s lawyers should have known the law and refrained from complying with an order from a court without jurisdiction.
Their actions were wrongful.” Justice Bature also condemned the bank’s failure to notify Abhulimen of the account freeze, describing it as a breach of duty. “Zenith Bank owed the claimant a duty of care to inform her of the restriction. Their failure to do so constitutes negligence and a violation of due diligence,” he said.
The judge declared the ex-parte order to freeze the account, which was set to last indefinitely, as invalid.
He ruled, “An order to freeze a bank account cannot be granted ex-parte without a time limit, and the Nasarawa Magistrate Court lacked authority to issue such an order for account number 1012272348.”
In addition to lifting the account restriction, the court ordered Zenith Bank and the NPF to jointly pay N60 million in general damages for the “embarrassment, psychological trauma, financial distress, emotional stress, and grave inconveniences” suffered by Abhulimen & Co. The defendants were also directed to pay N25 million as the cost of the legal action.
The judgment underscores the importance of due process and jurisdictional competence in banking disputes, holding Zenith Bank accountable for its oversight and negligence. (NAN)
