Federal High Court strikes out suit against CBN, GTBank, and FirstBank

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A Federal High Court in Lagos has struck out a suit filed by Mr. Kareem Kazeem Babatunde against the Central Bank of Nigeria (CBN), Guaranty Trust Bank, and First Bank of Nigeria Plc. The plaintiff had sought a declaration that two CBN circulars, dated June 11, 2015, and October 18, 2017, respectively, were unconstitutional, illegal, and null and void.

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The circulars in question related to the CBN’s guidelines on BVN watch-listing, which led to the freezing/restricting of Babatunde’s accounts by First Bank and Guaranty Trust Bank. Babatunde’s counsel, Kingsley Ebimoh, argued that the banks’ actions were unlawful, as they relied on the CBN circulars without a valid court order.

However, the CBN, represented by Professor Fabian Ajogwu, a senior advocate of Nigeria, filed a preliminary objection challenging the court’s jurisdiction to entertain the suit. Ajogwu argued that the CBN circulars were issued in good faith, in line with the provisions of the CBN Act 2007, and that the CBN qualifies as a public officer under Nigerian law.

Ajogwu further argued that Babatunde’s action was statute-barred, as it was filed outside the three-month limitation period prescribed by the Public Officers Protection Act. The court, presided over by Justice Alexander Owoeye, agreed with Ajogwu’s submissions, ruling that the CBN is indeed a public officer and enjoys the protection afforded under the Public Officers Protection Act.

“The suit was statute-barred,” Justice Owoeye ruled, striking out the suit. With this ruling, the court upheld the validity of the CBN circulars and the banks’ actions in restricting Babatunde’s accounts.

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