Freezing Bank Accounts in Nigeria: Emerging Judicial Trends, Legal Boundaries and Other Matters

In Kuda Microfinance Bank Ltd v. Amarachi Kenneth Blessing, the Court of Appeal confirmed that banks can impose restrictions without a court order in cases of suspected fraud, where supported by their Terms and Conditions and relevant Central Bank of Nigeria regulations.

While in Paulyn O. Abhulimen, SAN v. Zenith Bank Plc, a High Court held that enforcing an order from a court without jurisdiction amounts to negligence, a warning to banks to strengthen verification and compliance processes.

In this article, TEMPLARS Partner, Cyriacus Orlu, and Associates, Francis Jarigo and Obinna Onyishi, analyse these decisions and the evolving balance between regulatory compliance, customer rights, and operational risk for financial institutions.