Court Unfreezes Four Accounts Linked to N21bn System Glitch, Faults Police

The Federal High Court sitting in Abuja has ordered the unfreezing of four bank accounts linked to an alleged N21 billion system glitch in 2023, while criticising the police over the manner in which the freezing orders were obtained.

Justice Emeka Nwite, in a ruling delivered on Monday, set aside the Post-No-Debit orders placed on the accounts of the four defendants.

The judge agreed with the defendants’ legal team, led by A.O. Ochogwu of Lexlaw Solicitors & Attorneys, that the police failed to disclose material facts when it approached the court for the freezing orders through an ex parte application.

The development is part of a wider legal dispute arising from investigations into alleged unauthorised withdrawals involving billions of naira from a Flutterwave account domiciled with Wema Bank.

The police had sought the restriction of the affected accounts in connection with the investigation into the alleged financial irregularities.

However, the defendants challenged the orders, arguing that the application presented to the court did not disclose relevant facts necessary for the court to make a fair determination.

In his ruling, Justice Nwite agreed that the police had suppressed material information in obtaining the orders.

The court consequently lifted the Post-No-Debit restrictions imposed on the four accounts, allowing the affected account holders to regain access to their funds, subject to any other lawful restrictions that may apply.

The ruling represents another development in the broader litigation involving banks, financial institutions and parties connected to the alleged N21 billion transaction arising from the 2023 system glitch.

The case has attracted attention because of the substantial amount involved and the competing claims surrounding the transactions and subsequent efforts to recover funds allegedly withdrawn fraudulently.

The latest ruling underscores the court’s insistence that parties seeking ex parte orders must disclose all material facts to enable the court to reach an informed decision.