Officials of the Federal Capital Territory (FCT) High Court, today, Thursday, July 10, 2025, sealed the regional head office of Keystone Bank in Abuja over the bank’s failure to comply with a court judgment ordering it to pay over N240 million to a customer, Agricultural Productivity Enhancement Company Limited (AGROPRO Ltd).
At the heart of the matter was Keystone Bank’s refusal to release N202.8 million belonging to AGROPRO Ltd, an action which both the trial court and the Court of Appeal found unlawful.
According to the facts of the case, AGROPRO Ltd invested N200 million in a fixed deposit with Keystone Bank. Upon maturity, the bank refused to release the funds, citing a supposed obligation under the Anchor Borrowers Scheme – a completely separate transaction.
The courts ultimately ruled that the bank’s actions were unlawful, as there was no court order authorising the withholding of the customer’s funds.
The legal tussle began in 2021, with the Court of Appeal delivering its judgement on Friday, May 9, 2025,
Commenting on the case, Franklyn Ginger-Eke, an Abuja-based public affairs and strategic communication consultant, said: “The Keystone Bank case demonstrates the dangers of financial institutions overstepping their authority.
“Banks are not recovery agents and have no right to act as judges in disputes or to impose punishments on customers without court orders.
When they do, they risk triggering a chain reaction of distrust that reverberates through the entire financial ecosystem.
“The consequences of such overreach extend far beyond a single institution. When banks flout legal boundaries, it invites tighter regulation, fuels public distrust, and suppresses economic activity – consequences that weaken the financial system as a whole.
“For customers, this case carries another important lesson: the need to be proactive in defending their rights. AGROPRO LTD’s persistence and willingness to seek legal redress proved decisive.
“Many Nigerians, faced with similar injustices, have thrown their arms up in despair and walked away. That should not be the norm.
“By asserting their rights, customers not only protect their individual interests but also strengthen the financial system.
“Challenging unfair practices and seeking redress creates pressure for accountability and serves as a vital check on institutional excesses.
In doing so, customers fulfil a civic duty that benefits the broader economy.
Customers should also be encouraged to escalate their concerns to regulatory bodies such as the Central Bank of Nigeria.
“These agencies are charged with providing oversight and consumer protection. When used effectively, they can offer timely redress and ensure fair banking practices.
“By engaging with them, customers help create a more transparent and equitable banking environment.
“Finally, banks must invest in user-friendly complaint resolution systems that make it easy for customers to report issues and track responses.
“It is almost certain that this case could have been resolved without litigation if the bank had meaningfully engaged the customer and addressed the concerns in good faith.
“As we move forward, banks must remember that their long-term success lies not in dominating customers but in serving them with integrity, transparency, and respect for the rule of law. A trustworthy and responsive banking system is not just good business – it is a public good.”
