Kuda Microfinance Bank has been dragged before the Federal High Court in Lagos over alleged unlawful freezing of a customer account.
Abdulrahman Ekundayo, a customer of the lender, filed the suit against the bank on behalf of his company, Multibusiness Global Enterprise.
When the case came up for hearing on Tuesday, counsel to the applicant, Olalekan Ogunbunmi, informed the court that all necessary court processes had been duly served on the bank and that the respondent was aware of the proceedings scheduled for the day.
However, after examining the court file, Justice Ambrose Lewis-Allagoa observed that there was no proof of service before the court.
“There is no evidence of service in the court record,” the judge noted.
Consequently, the court ordered that a hearing notice be issued and properly served on the bank, and adjourned the matter to March 24, 2026, for a report of service.
In the suit, marked FHC/L/CS/2230/2025 and filed by the applicant’s counsel, Olalekan Ogunbunmi, Ekundayo accused the bank of breaching his fundamental rights by restricting access to the corporate account without a court order.
According to the originating application, the action was instituted pursuant to Sections 34, 35, 36, 41, 43 and 46 of the 1999 Constitution (as amended), as well as the Fundamental Rights (Enforcement Procedure) Rules, 2009.
The applicant asked the court to declare “that the unlawful freezing of the applicant’s account by the respondent without court order or lawful excuse is illegal, wrongful, unconstitutional and a violation of the applicant’s fundamental rights.”
He also urged the court to compel Kuda Microfinance Bank to immediately lift the restriction placed on the account.
Specifically, the applicant prayed for “an order directing and mandating the respondent to unfreeze the corporate account of the applicant, maintained with Kuda Microfinance Bank Limited with account number 3001195269.”
In addition, the applicant requested that the court order the release of various sums allegedly placed under lien, including “N4,444,540 held on July 5, 2025, till date;” “N502,100 held on July 8, 2025, till date;” and “N2,896,680 held on July 15, 2025, till date.”
The applicant further sought “an order directing the respondent to release all funds held under lien on the applicant’s corporate account.”
Explaining the basis of the suit, the applicant stated that “the applicant is a law-abiding citizen and did not commit any offence known to law.”
It added that “the respondent has no lawful excuse for any threat of arrest, humiliation or detention against the applicant. The only ‘offence’ of the applicant was that it engaged in legitimate transactions with proof of evidence.”
The applicant also maintained that “the restriction placed on the account without a court order was unlawful and unjustified, as the applicant has not committed any offence to warrant such treatment.”
