Landmark Class Action Lawsuits Filed Against Two Major Banks
In what could become one of Nigeria’s most significant legal battles in the banking sector, customers have filed class action lawsuits against two of the country’s top financial institutions. These cases, centered on alleged negligence and data privacy violations, could reshape how banks handle customer rights and data protection.
Access Bank Faces N420 Billion Lawsuit Over IT Failure
A group of six plaintiffs, acting on behalf of millions of affected customers, has filed a lawsuit against Access Bank at the Federal High Court in Lagos. The plaintiffs—Akinyele Oluwemimo Olaniyan, Sowole Olufunke Olukemi, Adetoun Anthonia Osunbade, Sowole Abidemi Olusola, Adegboyega Adeola Odunsi, and Tokunboh Fagun—accuse the bank of gross negligence, breach of contract, and violation of consumer rights.
Their claims stem from a major IT failure in August 2024, which left customers unable to access their accounts for over a week. They argue that this disruption severely impacted both individuals and businesses, making it impossible for many to meet essential financial obligations, despite having sufficient funds.
The plaintiffs are demanding N420 billion in compensation—N200 billion for restricted access to funds, N200 billion for emotional distress, and an additional N20 billion in exemplary damages aimed at preventing similar failures in the future.
Zenith Bank Accused of Privacy Violations in Second Lawsuit
In another major case, Moyosola Okeremi has taken Zenith Bank Plc to court on behalf of an estimated 33 million customers. The lawsuit, also filed at the Federal High Court in Lagos, alleges that the bank unlawfully misused customer data, violating data protection laws and privacy rights.
Okeremi claims that Zenith Bank, which operates in Nigeria and internationally—including in the UK, Ghana, Gambia, Sierra Leone, China, and the UAE—collected personal information through the “Know Your Customer” (KYC) process but later repurposed it for marketing without customer consent.
Allegations of Unsolicited Marketing and Data Misuse
According to the plaintiff, between July and August 2024, customers were bombarded with marketing messages via phone calls, emails, and text messages, promoting Zenith Bank’s public share offerings. She argues that these communications were intrusive, excessive, and in direct violation of several legal statutes, including the Nigeria Data Protection Regulation (NDPR) 2019 and the National Data Protection Act (NDPA) 2023.
The lawsuit asserts that Zenith Bank’s actions were unfair and inconsiderate, showing little regard for the privacy of its customers.
Legal Implications for Nigeria’s Banking Industry
The case against Access Bank highlights the bank’s alleged failure to maintain a reliable IT system and implement backup measures during service disruptions. The plaintiffs argue that Access Bank, which had over 36 million customers as of 2023, has a legal duty to provide uninterrupted banking services.
They cite multiple legal frameworks, including the Central Bank of Nigeria Consumer Protection Regulations (2019), the Federal Competition and Consumer Protection Act (2018), and the Consumer Protection Framework (2016), all of which mandate banks to safeguard customer interests and ensure service reliability.
The IT meltdown, according to the lawsuit, caused widespread financial hardships. Many customers faced difficulties paying school fees, medical bills, and business expenses, leading to emotional distress, embarrassment, and financial losses.
Potential Precedent for Banking Sector Accountability
These legal battles could set a significant precedent for how Nigerian banks handle customer data and service reliability. As digital banking continues to expand, these cases may push financial institutions to prioritize stronger IT systems and more transparent data policies, ensuring better consumer protection in the future.
