United Bank for Africa Plc (UBA) is facing serious allegations in a Lagos Federal High Court over the opening and operation of a “ghost account” worth over ₦5 billion in the name of EFFDEE Nigeria Limited, a prominent corporate entity. The company claims the account was opened without its knowledge or consent, sparking legal and regulatory scrutiny.
The lawsuit, filed under Suit No: FHC/L/CS/775/2025, accuses UBA of negligence, breach of trust, violation of the company’s constitutional right to privacy, and failure to adhere to Know Your Customer (KYC) and anti-money-laundering regulations. EFFDEE Nigeria Limited insists it has only one legitimate corporate account with UBA, and discovered the second account during a tax review by the Federal Inland Revenue Service (FIRS).
According to court documents, the disputed account – allegedly opened without board approval, signed mandates, or proper documentation – recorded transactions exceeding ₦5.2 billion between 2020 and 2022, including a ₦2 billion “loan facility.” Additional transactions occurred between January 2023 and January 2025, further raising alarm over possible fraudulent activity.
Managing Director Summoned Over ‘Ghost Account’
The scandal has reportedly affected the company’s Managing Director, Mr. Fouad Anthony Aquad, who claims he was invited, fingerprinted, and interrogated by the EFCC in August and September 2024 over the disputed account, despite having no knowledge of its existence. The plaintiffs argue that UBA’s actions have caused significant harm to both the company and its executives.
EFFDEE Nigeria Limited is seeking billions in damages, including ₦3 billion in aggravated damages, as well as declaratory and injunctive reliefs to prevent UBA from operating the disputed account or using the company’s data unlawfully in the future.
UBA Denies Allegations
UBA has officially denied any wrongdoing, with its legal team requesting additional time to prepare a defense. At a recent court hearing, senior bank representatives were reportedly absent from the country, prompting the court to adjourn the case.
This is not UBA’s first regulatory or operational challenge. In March 2025, the Central Bank of Nigeria fined UBA ₦149 million for compliance breaches, and the bank has previously faced court orders to pay damages for illegally freezing customer accounts.
Legal Experts Warn of Potential Fallout
Observers say the case could have wide-reaching implications for the Nigerian banking sector, particularly regarding corporate account management, customer data protection, and internal compliance controls. Legal experts suggest that if the court rules in favor of EFFDEE Nigeria Limited, UBA could face significant financial penalties and reputational damage.
EFFDEE Nigeria Limited’s lawsuit has drawn attention to systemic weaknesses in bank operations, with many calling for stricter oversight to prevent similar occurrences in other financial institutions.
What This Means for Nigerians
For corporate and individual customers alike, the scandal highlights the risks of unauthorized banking activities, underscoring the need for vigilance and robust regulatory enforcement. The outcome of this case is expected to set a critical precedent for corporate accountability in Nigeria’s banking sector.
