A Federal High Court in Lagos has ordered Access Bank Plc and the Economic and Financial Crimes Commission (EFCC) to pay damages for unlawfully freezing a customer’s bank accounts without obtaining a valid court order.
Justice Ayokunle Faji, who presided over the case, held that the bank’s action, carried out solely on the directive of the EFCC, was illegal, and awarded N300,000 in general damages against each of the two institutions.
The judgment followed a suit filed by Ganiyu Olawale Toheeb, who challenged the freezing of his naira and domiciliary accounts (Account Nos: 1456049856 and 1459254408) from February 2 to March 8, 2023.
The case, marked FHC/L/CS/333/2023, was instituted via an originating motion on May 18, 2023.
Toheeb asked the court to determine, among other issues, whether the EFCC Act permits a bank to freeze an account without a valid court order, and whether Access Bank violated provisions of the Central Bank of Nigeria Act and the Banks and Other Financial Institutions Act by complying with the EFCC’s instruction without judicial authorization.
The plaintiff sought multiple reliefs, including a declaration that the court had jurisdiction to interpret the relevant laws, that Access Bank acted unlawfully, and an order directing the immediate unfreezing of his accounts.
He also demanded N500,000 in damages and a perpetual injunction restraining the bank from further unlawful restrictions.
To support his claims, Toheeb submitted a 15-paragraph affidavit, written address, and several exhibits.
In response, Access Bank filed an 18-paragraph counter-affidavit, contending that it acted lawfully under the EFCC’s directive and that the anti-graft agency was within its powers to investigate suspected financial crimes.
The EFCC, in turn, filed a preliminary objection, challenging the court’s jurisdiction and urging that the matter be dismissed.
However, in a ruling that reinforced due process and the constitutional right to property, Justice Faji dismissed the EFCC’s objection, holding it lacked merit.
He ruled in favour of Toheeb on all substantive questions. The judge held that the EFCC’s directive was not sufficient grounds to freeze a citizen’s account without a court order and found both Access Bank and the EFCC jointly liable.
He granted Toheeb’s core reliefs and awarded N300,000 in general damages each against the two defendants for the month-long unlawful restriction of his funds.
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