Illegal restrictions: Court slams N3 billion fines against Zenith Bank

By Sola Omoniyi, Lagos

A Lagos State High Court sitting at Court 44, Commercial division, Osborne Foreshore, Phase2 has slammed N3 billion naira damage against the Zenith Bank PLC.

Congress gathered that the suit was filed by customer Tsami Babi Nig. Ltd, Amsamay Ltd and M A.Y Fine Fragrance against Zenith Bank PLC for freezing their accounts unlawfully.

The court awarded the sum of two Billion naira (N2, 000,000,000.00) against Zenith Bank PLC in favour of Tsami Babi Nig. Ltd, Amsamay Ltd and M A.Y Fine Fragrance as damages over illegal restrictions placed on their accounts operated with the bank.

Justice (Dr.) Rasul Oriyomi Olukolu declared the restriction on the accounts as illegal and unlawful following a subsisting court order.

The judge had ordered that the restriction be removed, since the court order dated 16th November 2022 which froze the said accounts had since expired.

The presiding judge also awarded exemplary damage of N1,000,000,000 (N1 billion) against Zenith Bank in favour of another customer of the bank who had suffered the same fate.

Justice Olukolu further ordered the payment of a 10% interest on the claimant’s account balance before the illegal restriction was placed on the accounts.

Nigerians had described the judgement as a rallying point following the continued illegal charges, failed bank transfers, inability to access their accounts and failed remittances experienced with commercial banks in the cause of their banking activities.