The Court of Appeal in Abuja has upheld a previous ruling that imposed an N85 million fine on a commercial bank and the Nigeria Police Force (NPF) for unlawfully freezing a customer's account. This decision, delivered on Monday, followed an appeal by the bank against a judgment from the High Court of the Federal Capital Territory (FCT) that had also ruled against it.

The case originated when Abhulimen & Co Law Firm, represented by Paulyn O. Abhulimen, SAN, found its account frozen without proper notification. The bank had placed a Post-no-debt (PND) on the account in March 2024, claiming it was acting on an order from a Chief Magistrate's Court in Mararaba Gurku, Nasarawa State. However, the High Court found that the order was invalid, as the court lacked jurisdiction over banking matters, including account freezes.

Justice Simon Bature of the High Court ruled on July 16, 2025, that the freezing of the account was a breach of the banker-customer relationship and ordered the bank to unfreeze the account. The bank was also directed to publish a public apology to the law firm for the distress caused by its actions.

In the appeal, the bank contended that the High Court's judgment should be overturned. However, a three-member panel led by Justice Adebukola Banjoko dismissed the appeal, affirming that the bank had acted in bad faith. The Court of Appeal's ruling emphasized that the bank's reliance on an invalid court order was illogical and unacceptable for a major financial institution.

The court ordered the bank and the police to jointly pay N60 million in general damages for the psychological trauma and financial distress inflicted on the law firm, along with N25 million in litigation costs. The total fine of N85 million serves as a punitive measure against the bank for its actions.

This case highlights the importance of due process in banking operations and the legal obligations financial institutions have towards their customers. The ruling reinforces the necessity for banks to ensure that any actions taken regarding customer accounts are grounded in valid legal authority and proper communication with the affected parties.