Customer Sues Kuda Bank Over Alleged Unlawful Account Freezing

A Customer of Kuda Microfinance Bank, Abdulrahman Ekundayo Multibusiness Global Enterprise, has dragged the bank before the Federal High Court in Lagos over the alleged illegal freezing of his account.

In suit number FHC/L/CS/2230/2025, filed by his lawyer, Olalekan Ogunbunmi, the applicant claims that the bank’s action violates several sections of the 1999 Nigerian Constitution, including Sections 66(B), 34, 35, 36, 41, 43, and 46, as well as relevant court rules.

Ekundayo is seeking various court orders, including a declaration that the account freezing without court approval is illegal and unconstitutional, and an order for the bank to unfreeze the account.

He also urged the court to order the release of funds held under lien—specifically N4,444,540 on July 5, 2025; N502,100 on July 8, 2025; and N2,896,680 on July 15, 2025—as well as all other funds in his corporate account on which a lien was placed.

The grounds for the claims state that the client is law-abiding and has done nothing unlawful.

The applicant stated that the bank has no lawful grounds to threaten arrest or detention and that the account restrictions are unjustified given his legitimate transactions.

During the court hearing, the lawyer confirmed that all processes had been served on the bank, which was aware of the proceedings.

However, the judge noted the absence of proof of service in the court file and ordered that a hearing notice be issued and served on the bank.

He then adjourned the case to March 24 for a service report