Yes, the account of a bank customer can be frozen upon reasonable suspicion of fraud, bribery, corruption, extortion, abuse of office and any other instance wherein the law states that the account of that person be frozen. Banking (Freezing of Accounts) Act 1984; Section 33 National Drug Law Enforcement Agency Act Cap.N30 Laws of the Federation of Nigeria 2004.
The account of a bank customer can be validly frozen upon an order made by the President of the Federal Republic of Nigeria or by any person authorized by him, or upon the order of a court. Fidelity Bank Plc. V. Bayuja Ventures Ltd. LPELR (2011) CA/L/473/2007; Section 5 Banking (Frozen of Accounts) Act, 1984.
No, the court has no jurisdiction to enquire into the circumstance justifying a freezing order made by the President under the Banking (Freezing and Accounts) Act 1984. Section 5 Banking (Frozen of Accounts) Act, 1984
The extent or the length of time to which an account can be frozen under the statute is not stated. As such, the bank examiner has the discretion to freeze an account for as long as he desires.
No, a bank cannot voluntarily or on its own freeze the account of its customer without first obtaining the order of the court notwithstanding that it has evidence of fraud against the customer. Freezing the customer’s account without obtaining a court order mounts to self-help, and the court frowns at self-help. Fidelity Bank Plc. V. Bayuja Ventures Ltd. LPELR (2011) CA/L/473/2007
No, the customer cannot sue the bank for complying with the order of a superior authority requesting the freezing of account of a customer, notwithstanding that the order fails to comply with the provision of the Banking (Freezing of Accounts) Act. However, the customer can maintain an action against the Federal Government to have the account unfrozen. IBWA v. Kennedy Transport (Nig) Ltd. (1993) 7 NWLR (Pt. 304) 238