Court dismisses suit against CBN’s policy on bank account charges

*The Central Bank of Nigeria has disclosed Justice Shittu Abubakar, the trial judge, after a careful analysis of the case dismissed the suit in its entirety for lacking in merit and upheld the preliminary objection

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has said the Federal High Court sitting in Abeokuta, Ogun State capital, dismissed a suit Olumide Babalola, a legal practitioner, had instituted, challenging the Bank’s policy on current account maintenance fee in the country.

The account maintenance fee provision is contained in the guide to the charges by banks and other financial institutions of January 2020.

The CBN disclosed this development Tuesday, February 9 in a statement titled, ‘Court dismisses case against CBN’s directives on bank charges’.

According to the Bankers’ Bank, “Babalola had instituted the action in the name of his law firm, Babalola LP, in which he contended that the policy and guidelines of the CBN violated his fundamental human rights.

“The CBN, through its counsel, Adeleke Agbola, of Cheakley Chambers, however challenged the suit on the ground that the plaintiff lacked the legal capacity to institute the suit on a policy that affects the public.

“In his notice of preliminary objection to the suit, Agbola had contended that the plaintiff failed to show that the CBN acted in bad faith or breached any law by issuing the guidelines.”

The CBN stated Justice Shittu Abubakar, the trial judge, after a careful analysis of the case Wednesday, February 3, 2021, dismissed the suit in its entirety for lacking in merit and upheld the preliminary objection.

The court held that guidelines issued by the CBN, authorising deduction of current account maintenance charges were lawful and within the statutory powers of CBN, according to the statement.

The apex bank stated the court also concurred with the argument canvassed by the CBN counsel that the plaintiff had not shown that the CBN breached any known law by issuing the guidelines.

The CBN added Justice Abubakar also held that the plaintiff/applicant (Babalola) ought to have negotiated with his bank, Access Bank Plc, for a reduction of his charges instead of dragging the CBN to court.