A lawsuit has been filed against Kuda Microfinance Bank before a Federal High Court in Ikoyi, Lagos, over allegations that the bank unlawfully froze a corporate customer’s account and withheld millions of naira without obtaining a valid court order.
The legal offensive marked FHC/L/CS/2230/2025), and filed by Abdulrahman Ekundayo Multibusiness Global Enterprise, pointed accusing fingers at the fintech lender of violating fundamental constitutional rights.
Addressing the court through its counsel, Olalekan Ogunbunmi, the applicant contended that the bank’s actions infringe upon sections of the 1999 Constitution protecting property, fair hearing, and personal liberty.
According to the suit dated October 30, 2025 and filed before the court presided over by Justice Ambrose Lewis-Allagoa, the applicant claimed that Kuda Bank placed a lien on its funds across three separate dates in July 2025.
Abdulrahman Ekundayo Multibusiness Global Enterprise, revealed that the sum of ₦4,444,540 was held under lien on July 5, 2025.
It further stated that on July 8, 2025, the sum of ₦502,100 was held under lien, adding that the bank equally placed ₦2,896,680 under lien on July 15, 2025.
The applicant is there seeking an order from Justice Lewis-Allagoa to compel Kuda to unfreeze the account and release the total sum of approximately ₦7.84 million.
Abdulrahman Ekundayo Multibusiness Global Enterprise maintained that it is a law-abiding entity and that the restricted funds are the result of legitimate transactions supported by documented evidence.
The claimant asserted that Kuda Bank restricted the account without a court order or lawful excuse, describing the move as unconstitutional.
The suit further alleged that the bank’s actions were accompanied by threats of arrest and humiliation, despite no evidence of criminal activity by the enterprise.
“The only offence of the applicant was engaging in a legitimate transaction with proof of evidence,” the court documents stated.
The applicant’s counsel informed the court that the bank had been served with all necessary processes.
However, the presiding judge noted that the formal proof of service was missing from the court’s file.
To ensure all parties are legally represented and notified, the judge ordered that a fresh hearing notice be issued and served on Kuda Microfinance Bank.
The matter has been adjourned ti March 24, 2026, for a report of service and further proceedings.
