Nigerians have continued to react with outrage to a court order obtained by the Federal Government to seize funds in accounts with no BVN/incomplete KYC documentation. The court order, which was obtained last week mandates the commercial banks in the country to freeze such accounts and make the balances known to the government. The banks are also expected to give details of revenues made from such funds.

Here are 10 reasons why the order may be faulty:

  •  BVN is not a prerequisite to opening and operating a bank account.
  • There is no statute providing that money in account not linked to bvn should be forfeited to the federal government.
  • The FG not being the owner of the money has no locus to institute the action.
  • The money in those accounts does not belong to the Cbn or the commercial banks.
  •  The banks under banking laws are debtors to depositors and not to the FG.
  •  The owners of the accounts are necessary parties and not joined in the suit.
  • The owners of those accounts are denied the right to fair hearing.
  •  Orders of court must be specific and definite.
  • Courts cannot make orders to bind parties that are not before it.
  • The owners of the accounts have been found guilty without trial.
Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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