Introduction

Sometime in 2019, a client informed me that a certain amount of money was paid into his account and the account was unilaterally freezed by the bank without his notice, thus causing him inconvenience. This action is common with Nigerian banks and often times, such a wrong is never addressed.

A frozen account is a bank or investment account through which no transaction can be made. Essentially, you cannot withdraw funds from your account once it is frozen. It is trite that the relationship between a banker and its customer is founded on simple contract.

A bank customer may or may not be an account holder with the bank. In so far as some money transaction arising from the nature of the contract connects the person to the bank thereby creating or bringing about a customer-banker relationship with the bank, such a person is considered in the eyes of the law, a bank customer.

The law is that a Bank has no right or power, by itself, to freeze the account of a customer, be it its staff or otherwise, and/or to prevent such a customer with money standing to his credit in his account from accessing the money – First City Monument Bank Plc Vs Abdul Gafaru & Co Ltd (2017) LPELR 42452(CA).

The only exception is where the Bank receives notice of the death of a customer, it is under a duty in such a circumstance to stop withdrawals from the account, and only the legal representatives of the customer duly appointed by law can access the account thereafter. Where a Bank takes it upon itself to freeze the account of a customer or prevent a customer with money standing to his credit in his account from accessing the money, simply because of an allegation of fraud made against such a customer, it will amount to self-help and it is illegal and wrongful – Fidelity Bank Plc Vs Bayuja Ventures Ltd (2010) LPELR 8873(CA).” Per HABEEB ADEWALE OLUMUYIWA ABIRU, JCA (Pp 37 – 37 Paras A – F)

Infact, let’s put it this way, the bank owes a duty of communication to the customer of a bank before doing anything to the account. See BRITISH & FRENCH BANK LTD VS. OPALEYE (1962) LPELR- 25173(SC).” Per EBIOWEI TOBI, JCA (Pp 26 – 26 Paras B – C). The court of appeal reiterated this duty in STERLING BANK v. AKINTOYE AKINBODE

(2018) LPELR-50669(CA).

The relationship between a Bank and its Customer have been variously described and defined by the Court and one major principle ruling through the decisions is that the Bank owes the Customer a duty of care to properly manage the Customer’s account(‘s) held in the Bank.

What are your rights if your account is frozen without your notice?

Duty of care means serious attention or heed. Under the law of negligence or of obligation, it means the conduct demanded of a person in a given situation. Typically, this involves a person giving attention both to possible dangers, mistakes and pitfalls and to ways of minimizing those risks.

A Duty of care is said to exist where there is sufficient relationship of proximity as between the defendant and the plaintiff who suffered the damage such that a reasonable man can conclude that carelessness on the part of the defendant likely caused the damage.

The Court in the case of NEW IMPROVED MANIBANNC VENTURES Ltd v. FIRST BANK OF NIGERIA PLC (2009) 16 NWLR (P. 435, paras. D-E) restated this settled principle of law thus:

“A bank has a duty under its contract with its customer to exercise reasonable care and skill in carrying out its part with regard to operations within its contract with its customer. The duty to exercise reasonable care and skill extends over the whole range of banking business within the contract with the customer.”

See: HENRY OKOBIEMEN v. UNION BANK OF NIGERIA PLC (2019) 4 NWLR P.265 (CA); and SKYMIT MOTORS LIMITED v. UNITED BANK OF AFRICA PLC (2021) 5 NWLR P. 123 (SC).

Where a party holds the belief and made a complaint that his Bank has breached the duty of care owed to him as a Customer, or has frozen his or account illegally, such party has the option of approaching the Courts via a civil suit for remedy. The person is to engage the services of a lawyer who will file an action and serve the bank, claiming specific performance and damages. This will give rise to a suit against the best to address the wrong done by the bank.

For more info, send a mail at chizyelton@gmail.com