Economy
Unlawful Account Freeze: Federal High Court Delivers Landmark Judgment Against OPAY, Orders N1.2 Million in Damages
By Lawrence Oyibo
In a groundbreaking ruling, Hon. Justice Olufumilola A. Agbaje of the Federal High Court in Asaba issued a powerful judgment against OPAY Digital Services Limited in Suit No: FHC/ASB/CS/12/2024. The court ordered OPAY to pay N1.2 million in damages and N200,000 in litigation costs to Innocent Chukwuka Njoku, a cryptocurrency trader, for violating his fundamental rights by freezing his bank account without a court order.
Njoku, the applicant, filed a fundamental rights suit under Section 44(1) of the Nigerian Constitution, Article 14 of the African Charter on Human and Peoples’ Rights, and under the court’s inherent jurisdiction preserved by Section 6(6)(a) of the Constitution. Through this suit, Njoku sought relief from what he described as an unconstitutional and unlawful restriction on his bank account.
In his application, Njoku requested the court to declare the freeze unconstitutional, order OPAY to lift the restriction immediately, issue an injunction against further interference without a court order, and grant him N100 million in damages along with N500,000 in litigation costs.
Njoku, represented by human rights lawyer Michael Onyarin Esq., argued that OPAY had no authority to freeze his account without a court order. He submitted evidence, including multiple exhibits (A1-A6 and A8), demonstrating that he had fully complied with OPAY’s requests for documentation, confirming his cryptocurrency trading activities. However, OPAY failed to lift the restriction, instead instructing him to secure a court order to release his funds.
OPAY, represented by counsel E.E. Owhofasa (Mrs.), responded in a 31-paragraph affidavit, claiming Njoku’s account was merely dormant due to suspected fraudulent activity. They argued that his account would be restored upon compliance with Central Bank of Nigeria (CBN) guidelines for cryptocurrency traders.
Judgement Against Opay
Justice Agbaje weighed the arguments and evidence presented, referencing Section 131 of the Evidence Act 2011, which places the burden of proof on the party seeking a judgment.
Examining Njoku’s exhibits and evidence, the court found that OPAY had failed to effectively counter the applicant’s claims. Justice Agbaje noted that OPAY’s affidavits were vague, amounting to “mere general denials” that could not rebut the “serious averments” made by Njoku.
The court held that OPAY acted without judicial authority, taking the law into its own hands by restricting Njoku’s account.
In a decisive message, Justice Agbaje warned financial institutions that violating citizens’ constitutional rights would have serious consequences. She declared the account freeze unconstitutional, ordered OPAY to lift the restriction immediately, and issued an injunction against further interference without due process.
Njoku was awarded N1.2 million in damages and N200,000 for litigation costs, though his N100 million claim was reduced in the final judgment.
Following the judgment, Michael Onyarin Esq. celebrated the decision as a significant victory for justice in Nigeria. He urged Nigerian citizens—especially youths and students—who face unwarranted account restrictions from financial institutions to challenge these practices.
“This judgment confirms that justice is still attainable in Nigerian courts,” Onyarin stated. “Freezing accounts without a court order is an oppressive tactic meant to frustrate citizens, particularly young people, into abandoning their funds due to high litigation costs or lack of patience. I encourage everyone affected to stand up against these unlawful practices.”
“This ruling serves as a critical reminder that Nigerian laws protect individual rights, setting a precedent for holding financial institutions accountable”, he added.
