revocation of banking licence

As a matter of fact, you have every legal right to sue anybody you want as long as there is a valid cause for such. However, all legal right to enforce an action are not perpetual right, but a right is generally limited by law. The CBN is an agency of the Federal Government that enjoys the protection contained in the Public Officers Protection Act. When you do not bring your case within the time frame, then it’s no longer necessary whether you have a good case or not. Your right to enforce an action is barred. Section 2(a) Public Officers’ Protection Act 2004; U.M.B Ltd. V. C.B.N (2017) All FWLR (pt. 880) pg. 846

If X is sure that he lost his new job as a result of the interference of his former employer, then Mr. X has the burden to prove that it was the unlawful act of ZZ Bank Ltd. which was malicious and deliberate that made him lose his new job. He (Mr. X) must also prove that his new employer breached his employment under the terms and conditions agreed. Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (pt. 914) 1011

No, the inscription of the word ‘DAR’ does not only by itself mean that the cheque has been dishonoured or that there is no money in the drawer’s account. Except there is concrete evidence that such inscription connotes such a meaning. Oceanic Securities International Ltd. V. Balogun (2013) All FWLR (pt. 677) 661

The licence of a bank is revoked from the date a notice of revocation is served on the bank issued by the Governor of the Central Bank of Nigeria with approval of the Board of Directors and note on the date it is published in the official gazette. U.M.B Ltd. V. C.B.N (2017) All FWLR (pt. 880) pg. 840

Yes, you can maintain an action in court against the Central Bank of Nigeria for receiving your licence to operate a banking business in Nigeria. However, you must do this within three (3) months from the date a notice of revocation of your licence is served on you. The Central Bank of Nigeria is an Agency of the Federal Government which enjoys the protection of the Public Officers’ Protection Act 2004 and the act protects the Agency from any action made against it where such action is brought after the expiration of 3 months. U.M.B Ltd. V. C.B.N (2017) All FWLR (pt. 880) pg. 840

No, once an officer of the Central Bank of Nigeria acts outside its duty or function, the Public Officers Protection Act will not avail him. Egbe V. Alhaji (1990) 1 NWLR (pt. 128) 546; U.M.B Ltd. V. C.B.N (2017) All FWLR (pt. 880) pg. 840

No, the fact that the licence of a bank has been revoked does not mean that the bank is dead. In fact, where the licence of a bank is revoked, the bank can still sue and be sued as the revocation of a bank licence only indicated that the back is ill disposed and has a serious and acute sickness but not dead. C.C.B (Nig) Plc. V. O`silvawax International Ltd. (1999) 7 NWLR (Pt. 609) 97; Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (Pt. 914) 1024

Yes, the Nigeria Deposited Insurance Company and the Central Bank of Nigeria are regulators who have statutory obligations and duties in the banking industry. They have a duty to control and monitor activities in the banking sector. This includes the employment of staff by the bank that may be harmful to depositors and owners of bank. The act of the CBN and NDIC in notifying the new employer of Mr. X misconduct is not wrong. Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (pt. 914) 1007

Although ZZ Bank Ltd. has no legal basis to discipline Mr. X or make a report against Mr. X, after Mr. X had terminated his appointment with ZZ Bank Ltd. However, ZZ Bank Ltd will not be guilty of breach of contract by inductment in the event where Mr. X loses his new job as a result of his being indicted by ZZ Bank Report except it is evident that ZZ bank Ltd. made the Report maliciously and without reasonable justification for the purpose of inducing the breach of Mr. X’s contract with his new employer. Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (pt. 914) 1010

The revocation of a Bank’s licence is not the death of the bank. Before an institution becomes a bank, it must first be incorporated as stated in the Company and Allied Matters Act. At the revocation of its licence, the bank shall apply to the Federal High Court for winding up. It is when a bank has been fully wound up before it is said that the bank is dead. Section 478(1) Company and Allied Matters Act, Cap C20 Laws of the Federation 2004; Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (pt. 914) 1025

No, where a bank illegally deducts money from its customers account, such action of the bank is wrong and illegal and as such the bank cannot be allowed to enrich itself by its own wrong doing. Such money must be refunded. It is money had and received. Afuye V. Skye Bank Plc. (2017) All FWLR (Pt. 869) 860

Where a bank manager grants a credit facility to a customer of the bank and such credit facility was not authorized by the bank, such bank manager can be charged to court and if found guilty can be convicted for the unauthorized grant of credit facility. Section 18(1) Banks and Other Financial Institutions Act Cap. B3 Laws of the Federation of Nigeria, 2004; Mmamman V. FRN (2013) All FWLR (pt. 697) 709

Where a manager in a bank is not authorized to grant instant credit facility yet goes ahead to grant same, it is no defence that the manager granted such credit facility innocently and in ignorance. This is because as a manager in the bank he is top professional and he cannot therefore claim ignorance of the working expectation of the bank. He will be convicted for such crime if found guilty. Mmamman V. FRN (2013) All FWLR (pt. 697) 714

For a person to be guilty and convicted for the unauthorized grant of credit facility, the following must be proved;

a) The accused person must be an officer or a manager of the bank;

b) That the accused person granted an advanced loan to a person;

c) That the credit facility was granted without authorization as provided by the rules and regulations of the bank;

d) Where security is required, such security shall be deposited in the bank before the advance or loan is approved and given to the customer.

It is important that a), b), c) above must go together to secure a conviction. d) above, becomes mandatory only if security is required. Section 18(1)(b) of Banks and Other Financial Institutions Act Cap. B3 Laws of the Federation of Nigeria, 2004; Mmamman V. FRN (2013) All FWLR (pt. 697) 709

The relationship of a customer and banker is based on utmost good faith and same must be the watch-word of that relationship. Afuye V. Skye Bank Plc. (2017) All FWLR (869) 862

The word ‘DAR’ simply means Drawer’s Attention Required. The Drawer’s attention can be required by a bank for different number of reasons, for instance, the drawer may be required to explain something before the cheque is cashed. However, it is mostly done to protect the interest of the customer and the bank. Oceanic Securities International Ltd. V. Balogun (2013) All FWLR (pt. 677) 661

No, where Mr. X terminates his appointment by resigning from ZZ Bank Ltd., the handbook of ZZ bank Ltd. and the disciplinary measures of ZZ Bank Ltd. becomes inapplicable to Mr. X as he is no longer a member or staff of ZZ Bank Ltd. Abekhe V. Alpha Merchant Bank Plc. (2017) All FWLR (pt. 914) 1002

Where a bank has been declared failed by the Central Bank of Nigeria, such bank can only maintain an action or bring an application in the name of two categories of persons namely:

a) A receiver or liquidator of a failed bank.

b) Where there is no receiver then any person appointed by the Central Bank of Nigeria or the Nigeria Deposit Insurance Company.

Section 7 Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act CapF2 Laws of the Federation of Nigeria 2004. A-Oguntimehin V. Trade Bank Plc. (2017) All FWLR (pt. 889) 522.

A bank is termed a failed bank when its licence has been revoked or which has been declared closed or taken over by the CBN or NDIC or whose risk weighed assets ratio is below such minimum percentage as may be stated by CBN from time to time. A-Oguntimehin V. Trade Bank Plc. (2017) All FWLR (pt. 889) 522