United Bank for Africa Plc (UBA) is facing a lawsuit at the Federal High Court in Lagos over allegations that it secretly opened and operated a corporate bank account in a company’s name, channeled more than ₦5 billion through the account, and secured a ₦2 billion loan —transactions that allegedly exposed the company’s managing director to investigation by the Economic and Financial Crimes Commission (EFCC).

The suit, marked FHC/L/CS/775/2025, was filed by EFFDEE Nigeria Limited and its Managing Director, Mr. Fouad Anthony Aquad. The plaintiffs accuse the bank of breach of contract, negligence, breach of trust, identity theft, unlawful data processing, and violation of their constitutional right to privacy. They are seeking declaratory and injunctive reliefs, alongside damages running into billions of naira.

According to court filings, EFFDEE Nigeria Limited has maintained only one authorised corporate account with UBA since August 4, 2020. The company insists it never applied for, approved, or authorised the opening of any additional account in its name.

The alleged irregularities came to light in January 2025 during a tax investigation by the Federal Inland Revenue Service (FIRS). The plaintiffs said FIRS contacted Mr. Aquad and requested bank statements for two UBA accounts purportedly belonging to the company. While one account was recognised as legitimate, the second —identified as Account Number 1023232539 — was, according to the plaintiffs, completely unknown to them.

Alarmed by the request, the company said it carried out internal checks and discovered what it describes in court documents as an “illegal” or “ghost” account that had allegedly been opened and operated in its name for several years without its knowledge.

Billions allegedly moved through the disputed account
statements allegedly obtained from UBA and attached to the suit indicate that the disputed account was opened with an initial credit of ₦2 billion, described as a loan facility.

Between 2020 and 2022, cumulative transactions of more than ₦5.2 billion reportedly passed through the account before it was largely drawn down. Additional transactions allegedly amounting to hundreds of millions of naira were recorded between January 2023 and January 2025.

The plaintiffs maintain that none of the company’s directors applied for the account, signed a mandate, submitted identification documents, passed a board resolution, or authorised any loan or transaction connected to it.

EFFDEE Nigeria Limited further claims that the undisclosed account triggered law enforcement scrutiny. According to the suit, Aquad was invited, detained, fingerprinted and questioned by the EFCC in August and September 2024 over transactions linked to the disputed account and the alleged ₦2 billion loan.

The managing director reportedly denied any knowledge of the account during the interrogation, insisting that neither he nor the company authorised the transactions under investigation.

The plaintiffs allege that UBA used confidential corporate and personal information obtained from their legitimate account to open and operate the second account without consent. They claim their identities were cloned, signatures and corporate resolutions forged, and mandatory Know Your Customer (KYC) and anti-money laundering checks ignored.

They also allege a contradiction in the bank’s conduct: while the disputed account was allegedly allowed to operate freely for years, UBA reportedly restricted the company’s legitimate account in September 2024, citing “incomplete documentation.” The plaintiffs argue that this raises serious questions about the bank’s internal controls.

In their claims, the plaintiffs accuse UBA of breaching multiple laws and regulations, including the Banks and Other Financial Institutions Act (BOFIA), Central Bank of Nigeria (CBN) regulations, the Nigeria Data Protection Act 2023, and the Federal Competition and Consumer Protection Act. They also contend that the bank’s actions amount to unlawful interference with their right to privacy under Section 37 of the 1999 Constitution.

The plaintiffs further allege that despite repeated letters and a pre-action notice issued by their lawyers, the bank failed to provide a satisfactory explanation or take decisive remedial action.

EFFDEE Nigeria Limited and Aquad are asking the court to declare the opening and operation of the disputed account unlawful and to award damages running into billions of naira, including ₦3 billion in aggravated damages.

They are also seeking a perpetual injunction restraining UBA from further operating the account or using their corporate and personal data.

The bank has denied the allegations and urged the court to dismiss the suit.

At the last hearing on November 24, 2025, the matter was adjourned to December 6, 2025. However, the court did not sit due to a judges’ conference. FRONTPAGE reports that the case has now been adjourned to March 19, 2026, for further hearing.

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