In a case that has sent shockwaves through Nigeria’s banking sector, United Bank for Africa Plc (UBA) finds itself embroiled in a legal battle over allegations of a secret “ghost” corporate account allegedly operated without consent. The case, filed at the Federal High Court, Lagos, paints a picture of alleged banking misconduct running into billions of naira.
EFFDEE Nigeria Limited and its Managing Director, Mr. Fouad Anthony Aquad, have dragged UBA before the court, claiming that the bank illegally opened and managed a corporate account in the company’s name. The lawsuit alleges that more than N5 billion was transacted through this account, including a controversial N2 billion loan.
In Suit No: FHC/L/CS/775/2025, the plaintiffs accuse UBA of breach of contract, negligence, breach of trust, identity theft, unlawful data processing, and violation of constitutional rights to privacy. They are seeking substantial damages, alongside declaratory and injunctive reliefs.
EFFDEE Nigeria Limited insisted that it has maintained only one legitimate corporate account with UBA since August 4, 2020. The company claimed it never applied for, authorized, or consented to the opening of any other account.
The alleged misconduct reportedly came to light in January 2025 when the Federal Inland Revenue Service (FIRS) contacted Mr. Aquad during a tax investigation. FIRS requested statements for two UBA accounts supposedly belonging to the company, one of which was completely unknown to the plaintiffs.
Alarmed, the company conducted internal checks and discovered the existence of a second UBA account described in court documents as an “illegal account.” According to the plaintiffs, this account had been operated without their knowledge for several years.
Statements obtained from UBA reportedly showed that the disputed account opened with a balance of N2 billion, claimed to be a loan, and recorded cumulative transactions exceeding N5.2 billion between 2020 and 2022. Subsequent transactions allegedly continued between January 2023 and January 2025.
The plaintiffs maintain that neither director applied for the account, signed any mandate, submitted identity documents, passed board resolutions, or authorized any related transactions. They argue that the account’s existence exposed Mr. Aquad to unwarranted law enforcement scrutiny.
In August and September 2024, the Economic and Financial Crimes Commission (EFCC) allegedly invited, detained, fingerprinted, and questioned Mr. Aquad regarding the disputed transactions and the N2 billion facility linked to the account. He insists he had no knowledge of it.
EFFDEE Nigeria Limited claims that UBA unlawfully used confidential corporate and personal information from the legitimate account to operate the second account. The plaintiffs allege signature forgery, document cloning, and neglect of mandatory anti-money laundering checks.
While the purported illegal account allegedly ran uninterrupted, UBA is accused of restricting the company’s legitimate account in September 2024 due to “incomplete documentation.” The plaintiffs describe this as suspicious and indicative of internal control failures.
The suit further accuses UBA of violating 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. Plaintiffs say the bank interfered with their constitutional right to privacy under Section 37.
EFFDEE Nigeria Limited is seeking a court declaration that the disputed account was unlawfully opened, billions in damages—including N3 billion in aggravated damages—and perpetual injunctions barring UBA from further operating the account or using their data.
The company also alleges that despite repeated letters and a pre-action notice through lawyers, UBA failed to provide a satisfactory response or take corrective action.
UBA, however, has denied the allegations and urged the court to dismiss the suit. At the last hearing, UBA’s counsel, B. Nwokedi, told the court that the principal was out of jurisdiction, prompting a request for adjournment.
