Port-Harcourt Based Lawyer, Steve Elijah, Esq., Drags CBN, Ors To Court Over N500, 000 Withdrawal Cashless Policy – TheNigerialawyer

A Port-Harcourt based lawyer, by the name Mr. Steve Elijah,
Esq., has challenged the policy of the Central Bank of Nigeria,
which among others, directs banks to collect punitive charges from
customers as processing fees at the rate of three percent (3%) for
any cash withdrawal above N500, 000.00 (five hundred thousand
naira) and two percent (2%) for any cash lodgments into customer’s
Bank Accounts.

The matter with Suit No: FHC/PH/CS/211/2019, which was
instituted via an Originating Summons before the Federal High Court
Of Nigeria, Port Harcourt, was brought pursuant to Order 3 Rules 1
and 2 of the Federal High Court (Civil Procedure) Rules 2019,
Section 251(1)(D) of the Constitution of the Federal Republic of
Nigeria 1999, Section 1 of Banks and Other Financial Institutions
Act CAP B3 Laws Of Federation Of Nigeria 2004, Section 2 of The
Central Bank Of Nigeria Act  2007 (NO. 7 OF 2007), Sections 59
and 107 of the Federal Competition and Consumer Protection Act 2018
(NO. 1 OF 2019), and under the inherent jurisdiction of the court
against the Central Bank of Nigeria and the plaintiff’s banks,
Access Bank Plc and Ecobank.

The plaintiff is seeking for the determination of the following
questions to wit: Whether the powers and functions of the 1st
Defendant under section 2 of the Central Bank of Nigeria Act 2007
and section 1 of the Banks and Other Financial Institutions Act Cap
B3 LFN 2004 extend to the 1st Defendant mandating and or directing
the 2nd and 3rd Defendants to impose and collect punitive charges
from the Plaintiff and other customers as processing fees at the
rate of three percent (3%) for any cash withdrawal above
N500,000.00 (five hundred thousand naira) and two percent (2%) for
any cash lodgments into the Plaintiff’s Bank Accounts maintained
with the 2nd-3rd Defendants; Whether the directive by the 1st
Defendant to the 2nd and 3rd Defendants and other Deposit Money
Banks (DMBs) which include Citibank Nigeria Limited, Fidelity Bank
Plc, and others to charge or collect from the Plaintiff and other
customers fees for processing of withdrawals at the determinate
rate of three percent (3%) for any cash withdrawal above
N500,000.00 (five hundred thousand naira) for individual accounts,
five percent (5%) for any cash withdrawal above N3,000,000.00
(three million naira) for corporate accounts, and processing of
lodgments at the determinate rate of two percent (2%) for any cash
lodgment above N500,000.00 (five hundred thousand naira) for
individual accounts and three percent (3%) for any cash lodgment
above N3,000,000.00 (three million naira) for corporate accounts
does amount to a restrictive agreement and price-fixing under
sections 59 and 107, respectively, of the Federal Competition and
Consumer Protection Act 2018 (No. 1 of 2019); Whether the 2nd and
3rd Defendants can impose and collect punitive charges from the
Plaintiff and other customers as processing fees at the rate of
three percent (3%) for any cash withdrawal above N500,000.00 (five
hundred thousand naira) and two percent (2%) for any cash lodgments
into the Plaintiff’s Bank Accounts maintained with the 2nd and 3rd
Defendants, respectively, as directed by the 1st Defendant in clear
breach of banker-customer relationship and whether the 1st
Defendant can validly mandate and or direct the 2nd and 3rd
Defendants and other Deposit Money Banks (DMBs) which include
Citibank Nigeria Limited, Fidelity Bank Plc, First Bank of Nigeria
Limited, First City Monument Bank Plc, and others to charge
customers punitive fees for processing of withdrawals at the
determinate rate of three percent (3%) for any cash withdrawal
above N500,000.00 (five hundred thousand naira) individual
accounts, five percent (5%) for any cash withdrawal above
N3,000,000.00 (three million naira) for corporate accounts, and
processing of lodgments at the determinate rate of two percent (2%)
for any cash lodgment above N500,000.00 (five hundred thousand
naira) for individual accounts and three percent (3%) for any cash
lodgment above N3,000,000.00 (three million naira) for corporate
accounts.

The plaintiff is also asking that if it is adjudged at the
hearing that any of questions 1, 3 and 4 above is answered in the
negative and/or question 2 above is answered in the affirmative in
his favour, he is seeking the following reliefs: A DECLARATION that
the 1st Defendant’s directive to 2nd and 3rd Defendants to charge
processing fees at the rate of three percent (3%) for any cash
withdrawal above N500,000.00 (five hundred thousand naira) and two
percent (2%) for any cash lodgment into the Plaintiff’s bank
accounts maintained with the 2nd and 3rd Defendants, respectively,
as contained in the 1st Defendant’s circular of 17th September,
2019 captioned ‘RE: IMPLEMENTATION OF THE CASHLESS
POLICY’ is punitive, unlawful, a clear breach of
banker-customer relationship and therefore null and void; A
DECLARATION that the 1st Defendant’s directive to the 2nd and 3rd
Defendants and other Deposit Money Banks in Nigeria which include
Citibank Nigeria Limited, Fidelity Bank Plc, and others to charge
the Plaintiff and other customers punitive fees for withdrawals at
the rate of three percent (3%) for any cash withdrawal above
N500,000.00 (five hundred thousand naira) for individual accounts,
five percent (5%) for any cash withdrawal above N3,000,000.00
(three million naira) for corporate accounts, and two percent (2%)
for any cash lodgment above N500,000.00 (five hundred thousand
naira) for individual accounts and three percent (3%) for any cash
lodgment above N3,000,000.00 (three million naira) for corporate
accounts is unlawful, breach of customer-banker relationship and
therefore null and void; A DECLARATION that the 1st Defendant’s
directive to the 2nd and 3rd Defendants and other Deposit Money
Banks in Nigeria which include Citibank Nigeria Limited, Fidelity
Bank Plc, and others to charge the Plaintiff and other customers
fees for processing of withdrawals at the determinate rate of three
percent (3%) for any cash withdrawal above N500,000.00 (five
hundred thousand naira) for individual accounts, five percent (5%)
for any cash withdrawal above N3,000,000.00 (three million naira)
for corporate accounts, and processing of lodgments at the
determinate rate of two percent (2%) for any cash lodgment above
N500,000.00 (five hundred thousand naira) for individual accounts
and three percent (3%) for any cash lodgment above N3,000,000.00
(three million naira) is restrictive and price-fixing and therefore
null and void; AN ORDER stopping and/or restraining the Defendants,
their agents, partners, officers, privies, howsoever named or
described, from giving effect, enforcing, charging or deducting
processing fees at the rate of three percent (3%) for any cash
withdrawal above N500,000.00 (five hundred thousand naira) and two
percent (2%) for any cash lodgment into the Plaintiff’s bank
accounts maintained with the 2nd and 3rd Defendants, respectively,
or any amount whatsoever pursuant to the 1st Defendant’s circular
of 17th September, 2019 captioned ‘RE: IMPLEMENTATION OF THE
CASHLESS POLICY and AN ORDER stopping and/or restraining the
Defendants, their agents, partners, officers, privies, all other
Deposit Money Banks, howsoever named or described, from giving
effect, enforcing, charging or deducting from the Plaintiff and
other customers fees for processing of withdrawals at the rate of
three percent (3%) for any cash withdrawal above N500,000.00 (five
hundred thousand naira) for individual accounts, five percent (5%)
for any cash withdrawal above N3,000,000.00 (three million naira)
for corporate accounts, and processing of lodgments at the rate of
two percent (2%) for any cash lodgment above N500,000.00 (five
hundred thousand naira) for individual accounts, three percent (3%)
for any cash lodgment above N3,000,000.00 (three million naira) for
corporate accounts or any amount whatsoever pursuant to the 1st
Defendant’s circular of 17th September, 2019 captioned, “RE:
IMPLEMENTATION OF THE CASHLESS POLICY”.

The application was supported by a 18 paragraphs affidavit, and
a 6 paragraph verifying affidavit all deposed to by the plaintiff
and a written address. The Summons was however taken out by Agochi
Amadi, Esq., V.N. Nweke, Esq., A.A. Ikpoko, Esq., E.L. Toanyie,
Esq. and C.S. Okonkwo of O.J. Wondah & Associates (His Majesty
Chambers).