Court awards N5m in damages against Ecobank for account restriction

Published

6 months ago

August 12, 2025

The Court of Appeal sitting in Owerri has delivered a landmark judgment affirming that Ecobank Nigeria Limited acted unlawfully in restricting a customer’s account without a court order.

It described the bank’s actions as a gross violation of customer rights and a breach of fiduciary duty.

The judgment arose from an appeal filed by Ecobank against a decision of the trial court, which had earlier ruled in favour of the Respondent, its customer, and awarded N10 million in general damages.

Justice Ntong Ntong, who delivered the lead judgment, agreed with the lower court’s findings but reduced the damages to N5 million, deeming the original sum excessive in light of the evidence presented.

In resolving the first issue, Justice Ntong emphasised that no bank has the power to freeze or restrict a customer’s account without a valid court order, regardless of internal policies or compliance procedures such as the Central Bank of Nigeria’s Know Your Customer, KYC, regulations.

The court held that while Ecobank claimed it acted under regulatory obligations after a $65,000 cash deposit raised red flags, it failed to demonstrate that such compliance required unilateral restriction of the account.

It cited relevant precedents, including FBN v. DKN Investments Ltd and GTB v. Joshua, to reinforce the principle that banking institutions must operate within the confines of the law, warning against the use of internal policies to override constitutional rights.

On the second issue, the appellate court found that Ecobank had no legal or contractual basis to assert a right of lien over $10,000 in the respondent’s account, which was allegedly owed to a foreign trading partner, Unique International Trading Ltd.

The bank had argued that it restricted the funds to protect itself from potential litigation threatened by the trading firm.

However, the court ruled that Ecobank’s reliance on the threat of legal action by a third party could not justify the exercise of any lien, especially in the absence of any contractual agreement or court order to that effect.

“Self-help has no place in the civilized world,” the court warned, rejecting the bank’s justification as “misconceived and untenable in law.”

On the final issue, it affirmed that Ecobank had breached its duty of care by unlawfully restricting access to the customer’s funds and dishonouring cheques.

However, it found no sufficient evidence to support the customer’s claim of lost business and goodwill due to the restriction.

Accordingly, the appellate court reduced the general damages from N10 million to N5 million, emphasising that while there was a breach warranting compensation, the initial sum was excessive.

Gunmen k!ll President General of Ogidi community and one other in Anambra.

Published

15 hours ago

February 7, 2026

Ekwutos Blog

Unidentified gunmen, suspected to be cultists, have k!lled a community leader and one other person in Anambra State.

The President-General of Ogidi community in Idemili North Local Government Area of Anambra State, Ikwuka Okoye, popularly known as Anumili (pictured above), was k!lled on Friday, Feb. 6.

The attack was alleged to have been carried out by members of a rival cult group in revenge for the de@th of their leader, who was arrested and k!lled by local security operatives.

During the attack, which took place at the School Field, Ogidi, another man whose identity has yet to be ascertained was also gunned down.

The spokesman for the Anambra State Police Command, SP Tochukwu Ikenga, confirmed the incident in a press statement on Saturday.

Ikenga said the incident is allegedly linked to the recent capture and k!lling of a known notorious cultist within the community.

He said, “The Anambra State Police Command regrets the murd£r of the President-General of the Ogidi community and one other person. The incident, which occurred on the evening of February 6, 2026, at the School Field, Ogidi, is allegedly linked to the recent capture and k!lling of a known notorious cultist within the community.

“Following the report, police operatives swiftly took over the scene of the incident and commenced investigations. The command is currently working with eyewitness accounts and other available intelligence to identify and arrest the perpetrators.

“The Anambra State Police Command assures members of the public that all efforts are being intensified to bring those responsible to justice.

“Residents are urged to remain calm and cooperate with the police as investigations continue.

“Further developments will be communicated in due course.”

Police bust syndicate behind nude photo blackmail in Lagos

Published

1 day ago

February 6, 2026

Ekwutos Blog

Men of the Police Special Fraud Unit (PSFU), Lagos, have apprehended three suspects who allegedly run a cyber blackmail and extortion scheme in the state.

According to the spokesperson of the unit, DSP Ovie Ewhubare, the suspects get a hold of their victims explicit photos and then threaten to release them if a ransom is not paid.

He said that the suspects, two males and a female, were apprehended after a petition was filed by a complainant who reported being repeatedly threatened by unknown individuals demanding money.

“The complainant received several phone calls in which the callers threatened to release her nude photographs to the public if she failed to pay them. Acting out of fear and emotional distress, she transferred money to the suspects.

The situation escalated when the suspects demanded an additional N10 million, prompting her to formally petition the police,” he said

The police imagemaker state dthat upon receipt of the complaint, the Commissioner of Police, PSFU, Mr Kayode Ojapinwa, ordered the immediate deployment of operatives to investigate the matter.

“The investigation led to the arrest of the three suspects. Investigations revealed that one of the suspects gained unlawful access to the complainant’s mobile device and fraudulently transferred her nude photographs to his own device. Further findings indicated that he conspired with the other suspects and other accomplices currently at large to demand and receive money from the complainant in several tranches,” he said

According to him, the suspects are currently in police custody and are expected to be arraigned before a court of competent jurisdiction.

The image maker said that investigations were ongoing to apprehend other fleeing members of the syndicate and to recover all proceeds of the alleged crime.

Catholic Priest Collapses And D!es In Front Of Congregation While Walking To Tabernacle To Return Holy Communion

Published

1 day ago

February 6, 2026

Ekwutos Blog

A Catholic priest has tragically passed away after suddenly collapsing in front of the congregation during Sunday mass.

The tragic incident took place last Sunday, February 1 in Wiesmath in the district of Wiener Neustadt, Austria.

Shortly after administering Holy Communion, 59-year-old priest Raimund Beisteiner was about to return the host to the tabernacle when he “suddenly” collapsed, according to a statement from the Archdiocese of Vienna.

“Despite immediate professional assistance, he di£d in the church,” the statement said.

The mayor of Wiesmath, Erich Rasner, had also attended the Mass with many other believers and witnessed the dramatic scenes.

The shock in Wiesmath at the loss of the popular priest is great. Beisteiner had shaped the spiritual life of the parish for almost two decades and was highly regarded far beyond the community.

Rasner praised him as an “extremely conscientious, sensitive priest” and also emphasized the personal loss of a friendship that had grown over many years.

A prayer service was organized at short notice for the late priest. It was attended by numerous priests from the deanery as well as Archbishop Josef Grünwidl.