Several noteworthy legal documents have recently come to light, offering insights into recent measures impacting numerous bank accounts across Nigeria. These documents consist of excerpts from court orders issued on April 2nd, 2025, related to a legal action identified as BATCH A ORDER BTW UNION BANK VS PROVIDUS BANK & 43 ORS. AND RE (SPARKLE MFB & 8 ORS.), and similar documents designated as BATCH B, C, D, and E.
At the heart of these documents lies a “PRESERVATORY ORDER OF INTERIM INJUNCTION”. This order dictates an immediate and significant action concerning customer accounts held within a specific set of financial institutions. The named banks that are obligated to adhere to this directive include Providus Bank, alongside Sparkle Microfinance Bank, Rubies Microfinance Bank, Standard Chartered Bank Limited, Optimus Bank Limited, Smartcash PSB, Momo PSB, M&M Microfinance Bank, Aella Microfinance Bank, and Ikire Microfinance Bank. These entities, along with others involved in the legal proceedings, are identified as the 46th to 54th Respondents.
The primary instruction within these court orders is the immediate imposition of a “Post No Debit” (PND) restriction on a significant number of customer accounts maintained by these banks. This PND restriction effectively freezes the affected accounts, preventing any withdrawals or transfers of the funds held within them. This stringent action is a direct response to allegations asserting that funds were erroneously and fraudulently transferred from Union Bank and subsequently credited to the accounts belonging to the customers of the aforementioned respondents.
A substantial portion of each of these PDF documents is dedicated to detailed listings of these beneficiary accounts. Typically, these lists provide crucial information such as the beneficiary bank name, the beneficiary account number, the beneficiary account name, and the specific amount received. It is vital to recognize that this interim injunction and the associated “Post No Debit” restrictions are temporary measures, remaining in effect pending the complete hearing and final determination of the ongoing legal suit.
As we have previously discussed, situations of this nature can have considerable repercussions for individuals engaged in various financial activities, notably including cryptocurrency Peer-to-Peer (P2P) trading. It underscores the potential dangers of inadvertently receiving funds that are later identified as originating from illicit sources, which can lead to account freezes and other significant complications. These excerpts from the court orders serve as a stark and tangible reminder of the paramount importance of exercising utmost caution and conducting thorough due diligence in all financial transactions.
For those interested in a more detailed examination of these documents, they can be accessed via the following placeholder links:
Disclaimer: It is important to bear in mind that these are excerpts from court orders and may not encompass the full legal context surrounding this situation.
