The Federal High Court in Abuja has ordered United Bank for Africa (UBA) to pay N30m in damages for unlawfully restricting a firm’s account for over a year.
Justice Peter Lifu delivered the judgment, stating that the bank had no legal basis for freezing the business domiciliary account or transferring funds from the account without a court order or notifying the customer.
The court also ordered UBA to immediately refund $163,592 wrongfully withheld from Micoz Bluelink Enterprise, the affected company.
The judge described the bank’s action as “a breach of the banker-customer’s relationship” and held that the bank’s conduct was “ultra vires its powers, reckless and bereft of mercy.”
The court found that UBA breached its fiduciary duty and acted without court approval, failing to inform the customer of the reasons for the account restriction and proceeding with a unilateral withdrawal.
The judge awarded damages in favor of Micoz Bluelink Enterprise, citing the significant economic loss and business disruption caused by the bank’s actions.
The court also ordered the reversal of the $163,592 withdrawal and awarded a post-judgment interest of 10% until the judgment sum is fully liquidated.
The judgment was delivered on July 25, and the certified true copy was made available to journalists in Abuja.
