The
suit claims the account moved over ₦5 billion and was also used to secure a ₦2
billion loan.
In
Suit No: FHC/L/CS/775/2025, EFFDEE Nigeria Limited and its managing director,
Fouad Anthony Aquad, accused United Bank for Africa, UBA, of breach of
contract, negligence, breach of trust, identity theft, unlawful data processing
and violation of their constitutional right to privacy.
The
plaintiffs are seeking declaratory and injunctive relief, as well as damages
running into billions of naira.
According
to the statement of claim, EFFDEE Nigeria Limited has maintained only one
legitimate corporate account with UBA since August 4, 2020, and never applied
for or authorised the opening of any other account in its name.
The firm avers that the alleged misconduct reportedly came to light in January 2025, when the Federal Inland Revenue Service (FIRS) contacted the company’s managing director during a tax investigation and requested statements for two UBA accounts said to belong to the firm. The plaintiffs further averred that one of the accounts, Account No. 1023232539, was said to be completely unknown to them.
Alarmed
by the development, the plaintiffs said they conducted checks and discovered
that a second UBA account, described in court documents as an “illegal
account”, had been opened and operated in the company’s name for several years
without its knowledge.
The
company said that statements allegedly obtained from the bank showed that the
disputed account carried an opening balance of ₦2 billion, described as a loan,
and recorded cumulative transactions exceeding ₦5.2 billion between 2020 and
2022 before being largely drawn down.
Further
transactions allegedly amounting to hundreds of millions of naira were said to
have occurred between January 2023 and January 2025.
EFFDEE
Nigeria Limited maintained that none of its directors applied for the account,
signed any mandate, submitted identity documents, passed board resolutions, or
authorised any loan or transaction linked to the account.
The
plaintiffs further alleged that the existence of the account exposed the
managing director to law enforcement action.
According
to the suit, Mr Aquad was invited, detained, fingerprinted, and questioned by
the Economic and Financial Crimes Commission in August and September 2024 over
transactions and a ₦2 billion facility allegedly tied to the disputed account,
despite his insistence that he had no knowledge of it.
The
company alleged that UBA unlawfully used confidential corporate and personal
banking information obtained from its legitimate account to open and operate
the second account.
It
claimed that identities were cloned, signatures and corporate resolutions
forged, and mandatory Know Your Customer (KYC) and anti-money laundering checks
ignored, allowing the account to operate undetected for years.
The
plaintiffs also alleged that while the disputed account was allowed to function
without restriction, UBA placed limitations on the company’s legitimate account
in September 2024 on grounds of “incomplete documentation” — a move they
described as suspicious and indicative of serious internal control failures.
In
the suit, EFFDEE Nigeria Limited accused the bank of breaching multiple laws
and regulations, including the Banks and Other Financial Institutions Act,
Central Bank of Nigeria regulations, the Nigeria Data Protection Act 2023, and
the Federal Competition and Consumer Protection Act.
They
further argued that the bank’s actions amounted to an unlawful interference
with their right to privacy under Section 37 of the Constitution.
The
plaintiffs are asking the court to declare the opening and operation of the
disputed account unlawful, award damages running into billions of naira —
including ₦3 billion in aggravated damages — and grant perpetual injunctions
restraining the bank from further operating the account or using their
corporate and personal data.
They
also alleged that despite repeated letters and a pre-action notice issued
through their lawyers, UBA failed to provide a satisfactory explanation or take
decisive remedial action.
UBA
Plc has denied the allegations and urged the court to dismiss the suit.
At
the last hearing, counsel to the bank, B. Nwokedi, informed the court that his
principal was outside the country and requested an adjournment to enable the
bank properly defend the matter.
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