United Bank for Africa Plc (UBA) has been dragged before the Federal High Court in Lagos over allegations that it secretly opened and operated a “ghost” corporate account in a customer’s name.
The suit claims the account moved over ₦5 billion and was also used to secure a ₦2 billion loan.
In Suit No: FHC/L/CS/775/2025, EFFDEE Nigeria Limited and its managing director, Fouad Anthony Aquad, accused United Bank for Africa, UBA, of breach of contract, negligence, breach of trust, identity theft, unlawful data processing and violation of their constitutional right to privacy.
The plaintiffs are seeking declaratory and injunctive reliefs, as well as damages running into billions of naira.
According to the statement of claim, EFFDEE Nigeria Limited has maintained only one legitimate corporate account with UBA since August 4, 2020, and never applied for or authorised the opening of any other account in its name.
The firm avers that the alleged misconduct reportedly came to light in January 2025, when the Federal Inland Revenue Service (FIRS) contacted the company’s managing director during a tax investigation and requested statements for two UBA accounts said to belong to the firm. The plaintiffs further averred that one of the accounts, Account No. 1023232539, was said to be completely unknown to them.
Alarmed by the development, the plaintiffs said they conducted checks and discovered that a second UBA account, described in court documents as an “illegal account”, had been opened and operated in the company’s name for several years without its knowledge.
The company said that statements allegedly obtained from the bank showed that the disputed account carried an opening balance of ₦2 billion, described as a loan, and recorded cumulative transactions exceeding ₦5.2 billion between 2020 and 2022 before being largely drawn down.
Further transactions allegedly amounting to hundreds of millions of naira were said to have occurred between January 2023 and January 2025.
EFFDEE Nigeria Limited maintained that none of its directors applied for the account, signed any mandate, submitted identity documents, passed board resolutions, or authorised any loan or transaction linked to the account.
The plaintiffs further alleged that the existence of the account exposed the managing director to law enforcement action.
According to the suit, Mr Aquad was invited, detained, fingerprinted, and questioned by the Economic and Financial Crimes Commission in August and September 2024 over transactions and a ₦2 billion facility allegedly tied to the disputed account, despite his insistence that he had no knowledge of it.
The company alleged that UBA unlawfully used confidential corporate and personal banking information obtained from its legitimate account to open and operate the second account.
It claimed that identities were cloned, signatures and corporate resolutions forged, and mandatory Know Your Customer (KYC) and anti-money laundering checks ignored, allowing the account to operate undetected for years.
The plaintiffs also alleged that while the disputed account was allowed to function without restriction, UBA placed limitations on the company’s legitimate account in September 2024 on grounds of “incomplete documentation” — a move they described as suspicious and indicative of serious internal control failures.
In the suit, EFFDEE Nigeria Limited accused the bank of breaching multiple laws and regulations, including the Banks and Other Financial Institutions Act, Central Bank of Nigeria regulations, the Nigeria Data Protection Act 2023, and the Federal Competition and Consumer Protection Act.
They further argued that the bank’s actions amounted to an unlawful interference with their right to privacy under Section 37 of the Constitution.
The plaintiffs are asking the court to declare the opening and operation of the disputed account unlawful, award damages running into billions of naira — including ₦3 billion in aggravated damages — and grant perpetual injunctions restraining the bank from further operating the account or using their corporate and personal data.
They also alleged that despite repeated letters and a pre-action notice issued through their lawyers, UBA failed to provide a satisfactory explanation or take decisive remedial action.
UBA Plc has denied the allegations and urged the court to dismiss the suit.
At the last hearing, counsel to the bank, B. Nwokedi, informed the court that his principal was outside the country and requested an adjournment to enable the bank properly defend the matter.
