Court Orders Keystone Bank to Refund N96,000, Pay N2m Damages

A Nigerian court has ordered Keystone Bank Limited to refund the sum of N96,000 and pay N2 million in damages to a customer following an alleged unauthorised withdrawal from her bank account.

The ruling followed a lawsuit filed by writer and author Obinna Undenwe on behalf of his cousin, Oluchi, who lost her tuition fees shortly before resuming a community nursing programme in 2022.

According to Mr Undenwe, the money was deposited into Oluchi’s Keystone Bank account to enable her pay for her admission. However, when she visited the bank to withdraw the funds on the last day of admissions, she was informed that only 50 kobo remained in the account.

“She had no ATM card, received no fraudulent SMS, and did not authorise any transaction,” Mr Undenwe said, adding that the incident left the teenager traumatised and unable to proceed with her admission for the 2022/2023 academic session.

Mr Undenwe alleged that bank officials dismissed Oluchi’s complaints, insisting she must have compromised her account. He said a review of the bank statement suggested that the disputed transaction may have been initiated internally.

Following the incident, the family engaged a lawyer, Chris Naru Osani, who wrote formally to Keystone Bank demanding an explanation and refund. The bank reportedly acknowledged the complaint and claimed it was investigating the matter but failed to provide a resolution.

After further correspondence was ignored, the family approached the court, seeking a refund of the money and damages for negligence.

During the trial, Keystone Bank reportedly argued that the withdrawal was carried out via a USSD transaction and blamed the customer for compromising her account. The claimant’s lawyer countered this claim, arguing that the transaction did not originate through USSD and pointing to evidence suggesting internal compromise.

Oluchi testified before the court, narrating how the incident cost her an academic year and caused emotional distress.

In its judgment delivered on Tuesday, the court ordered Keystone Bank to refund the N96,000 and pay N2 million in damages to the claimant.

Reacting to the ruling, Mr Undenwe described the judgment as a victory for ordinary Nigerians, stating that many bank customers lose money daily but lack the resources or confidence to challenge financial institutions.

“This case exposes deep issues of corporate governance and accountability within the Nigerian banking system,” he said, adding that banks often take advantage of vulnerable customers who cannot afford legal redress.

He also said his family was prepared to defend the judgment up to the Supreme Court should Keystone Bank decide to appeal.

As of the time of filing this report, Keystone Bank had not issued an official statement in response to the court ruling.