By Francis Xavier
In a landmark judgment delivered on 28th July 2025, the Court of Appeal sitting in Owerri has decisively ruled against Ecobank Nigeria Plc in the case Ecobank Nigeria Plc & Anor v. U-Jecklin Nigeria Ltd (Appeal No: CA/OW/99/2022), affirming that no bank has the legal authority to freeze a customer’s account without an express order from a court of competent jurisdiction.
Justice Ntong F. Ntong, JCA, who delivered the lead judgment, came down hard on Ecobank for its failure to perform basic due diligence before transacting with the customer in question. The bank, the court held, accepted a $10,000 deposit into a customer’s account and only after the transaction did it question the legitimacy of the account, raising what the judge called a belated alarm over the foreign currency involved.
“No bank, under any circumstance—even in a dream—has the power to freeze a customer’s account without a court order,” Justice Ntong declared.
He further criticized the bank’s negligence for not verifying the customer’s corporate identity through a search at the Corporate Affairs Commission (CAC) before proceeding to open the account. The judge questioned the bank’s motives, suggesting an intent to defraud (animus furandi), citing the abrupt restriction of the account after the funds had been received.
“Why did this Appellant not conduct due diligence or verify the authenticity of its customer? Instead, it accepted foreign currency and then suddenly raised eyebrows,” the judge queried.
The appellate court upheld the decision of the lower court, declaring the restriction imposed on the account unlawful and resolving the key issue in favour of the Respondent, U-Jecklin Nigeria Ltd.
This judgment reaffirms the obligation of financial institutions to comply strictly with legal protocols and transparency in customer relations, especially regarding account restrictions and fund management.
.
