By LEVI JOHNSON
Fresh legal trouble is brewing for United Bank for Africa Plc (UBA) following allegations that the financial institution secretly opened and operated a corporate bank account in a customer’s name without consent, a development now before the Federal High Court in Lagos.
The lawsuit, which has stirred intense debate across Nigeria’s banking and corporate sectors, accuses UBA of running what the plaintiffs describe as a “ghost account” used to process over ₦5 billion in transactions and secure a controversial ₦2 billion loan, all without the knowledge or authorisation of the affected company.
At the heart of the dispute is the UBA ghost account lawsuit, a case many observers say could redefine accountability, data protection, and customer consent within Nigeria’s financial system.
EFFDEE Nigeria Limited vs UBA: Inside the Lawsuit
The suit, FHC/L/CS/775/2025, was instituted by EFFDEE Nigeria Limited and its Managing Director, Mr. Fouad Anthony Aquad, against UBA Plc.
According to court filings, the plaintiffs are accusing the bank of breach of contract, negligence, breach of trust, identity theft, unlawful data processing, and a violation of their constitutional right to privacy.
They are seeking multi-billion-naira damages, alongside declaratory and injunctive reliefs aimed at permanently restraining the bank from operating or benefitting from the disputed account.
“We Have Only One Valid Account” — Plaintiffs Insist
In their Statement of Claim, EFFDEE Nigeria Limited maintained that it has operated only one legitimate corporate account with UBA since August 4, 2020.
The company categorically denied applying for or authorising the opening of any additional account in its name. It further stated that:
No board resolution was passed
No account opening mandate was signed
No director submitted identification documents
to justify the creation of a second corporate account.
According to the plaintiffs, the alleged account was opened and operated entirely without their consent or knowledge.
How the Alleged Ghost Account Came to Light
The controversy reportedly surfaced in January 2025, when officials of the Federal Inland Revenue Service (FIRS) contacted the company’s Managing Director during a routine tax investigation.
FIRS requested statements for two UBA accounts linked to EFFDEE Nigeria Limited. While one account was familiar, the second — Account No. 1023232539 — raised alarm.
The plaintiffs said they immediately carried out internal checks and discovered that the unfamiliar account had allegedly been active for years, prompting the description of the account as illegal in court documents.
₦2bn Loan and Over ₦5bn Transactions Allegedly Involved
Documents referenced in the suit allege that the disputed account carried an opening balance of ₦2 billion, said to be a loan facility granted by UBA.
Court filings further claimed that:
Over ₦5.2 billion passed through the account between 2020 and 2022
Additional transactions running into hundreds of millions of naira occurred between January 2023 and January 2025
The plaintiffs maintained that no loan application was submitted, and no transaction was authorised by either of the company’s directors.
EFCC Interrogation of Managing Director
One of the gravest consequences cited in the lawsuit is the alleged involvement of the Economic and Financial Crimes Commission (EFCC).
According to the plaintiffs, Mr. Aquad was invited, detained, fingerprinted, and interrogated by the EFCC in August and September 2024 over the transactions and the alleged ₦2 billion loan.
They argued that the existence of the disputed account placed the Managing Director under unjustified criminal suspicion, causing reputational damage, emotional distress, and professional harm.
Claims of Identity Theft, Forgery, and Data Abuse
EFFDEE Nigeria Limited further alleged that UBA unlawfully used confidential corporate and personal data obtained from its legitimate account to open and operate the second account.
The suit accused the bank of:
Cloning identities
Forging signatures and corporate resolutions
Ignoring mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements
The plaintiffs also described as suspicious UBA’s decision to restrict their legitimate account in September 2024 over alleged documentation issues, while the disputed account allegedly continued operating unhindered.
Alleged Breach of Banking and Data Protection Laws
The plaintiffs accused UBA of violating several key regulations, including:
Banks and Other Financial Institutions Act (BOFIA)
Central Bank of Nigeria (CBN) guidelines
Nigeria Data Protection Act 2023
Federal Competition and Consumer Protection Act
They also cited Section 37 of the 1999 Constitution, arguing that their right to privacy was unlawfully breached.
Reliefs Sought and UBA’s Position
EFFDEE Nigeria Limited is asking the court to declare the disputed account unlawful and award damages running into several billions of naira, including ₦3 billion in aggravated damages.
They are also seeking perpetual injunctions restraining UBA from using their data or operating the alleged ghost account.
UBA Plc, however, has denied all allegations and urged the court to dismiss the suit. At the last hearing, the bank’s counsel, B. Nwokedi, requested an adjournment, citing the absence of his principal from the country.
Why the UBA Ghost Account Lawsuit Matters
The UBA ghost account lawsuit is already drawing attention across Nigeria’s financial sector, raising serious questions about internal controls, data security, customer consent, and regulatory oversight.
As proceedings continue, analysts say the outcome could set a powerful precedent for corporate banking practices and consumer protection in Nigeria.
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