A Federal High Court in Lagos has directed 12 commercial banks to freeze 69 accounts suspected of being involved in unauthorised credit transactions amounting to N1.3 billion. The order, granted by Justice A. O. Faji, follows an ex-parte application filed by the Nigeria Police Force.
Background of the Case
The police, through the Force Criminal Investigation Department (FCID), alleged that the accounts were used to divert funds from a company's account without authorisation. The transactions, which occurred between January and June 2026, involved multiple transfers across different banks.
According to the police affidavit, the fraudulent activities were discovered after a petition was filed by the affected company, which reported unauthorised debits from its account. The police then traced the funds to the 69 accounts spread across the 12 banks.
Details of the Court Order
The court order mandates the banks to freeze the specified accounts for a period of 90 days, pending the conclusion of the investigation. The banks are also required to provide the police with statements of accounts and other relevant documents to aid the probe.
Justice Faji granted the order after listening to the submissions of the police counsel, who argued that freezing the accounts was necessary to prevent the suspects from withdrawing the funds and to preserve evidence.
Impact on the Banking Sector
This development has raised concerns within the banking sector about the prevalence of unauthorised transactions and the need for enhanced security measures. Financial analysts suggest that banks must strengthen their internal controls to detect and prevent such fraudulent activities.
The affected banks have not yet commented publicly, but they are expected to comply with the court order. The police have assured that the investigation will be thorough and that anyone found culpable will be prosecuted.
The case highlights the growing challenge of financial fraud in Nigeria and the role of the judiciary in supporting law enforcement efforts. The freeze order is a temporary measure, and the accounts will be unfrozen after the investigation is completed or further court directives are issued.
