http://atmcommunity.com/news.php?newsid=105


The Central Bank of Nigeria (CBN) and all 24 banks in the country and Interswitch Nigeria Ltd may have to pay out about N50 billion to victims of unauthorised Automated Teller Machine (ATM) withdrawals if a suit succeeds at a Federal High Court in Lagos.

The plaintiffs in a class action, prayed the court to give an order directing the banks, CBN and Interswitch pay N50 billion as general damages for the fraudulent withdrawals.

They are also demanding for N2.5 million being the joint value of the sum lost by them at four of the banks as well as N100 million as the cost of litigation and N10 million as cost of providing appropriate notice to the defendants and administering the class action for their benefit.

The plaintiffs in suit No. FHC/L/CS/827/09 before Justice Ibrahim Auta as a class action were represented by Miss Daba West, a civil servant with the Nigerian Ports Authority (NPA), Miss Nwajiagah Omeruo, a consultant, Mr Tochukwu Onyuike, a lawyer and Mr Sydney Aguwamba, a fashion designer representing all Nigerians who have fallen victims of unauthorised ATM withdrawals.

Union Bank of Nigeria Plc, United Bank of Africa Plc, Bank PHB and Intercontinental Bank Plc were chosen as representatives of the 24 banks and any decision taken against the four banks is binding on others as well as the CBN and Interswitch.

The plaintiffs are seeking a declaration that the defendants are liable to Nigerians for the losses and damages occasioned by the negligence of the defendants in relation to the provision of debit card services. Besides, they are seeking a court's declaration that the defendants are strictly liable for any damages or losses caused to them by reason of the use of the debit cards offered to them by the defendants. They also sought a declaration that the four banks are representative defendants of the class of defendants who are into the designing, manufacturing, supplying and offering of debit card services.

The plaintiffs sought a declaration that CBN failed in its regulatory duty to promote monetary stability and sound financial system in relation to the electronic money withdrawals.


According to the plaintiffs, since the introduction of the ATM in 2007, Nigerians have at all times had their inclination towards its use as they had built their daily living around the use of such cards and always done so with the daily limit withdrawal of N60,000.00. However, they averred that at various times, they had gone to make withdrawals from ATMs in the usual practice but were declined for non-availability of funds despite the fact that their accounts were funded in excess of N300,000.00 at the time of the withdrawals. According to them, on each of the occasion, after their experiences, they had requested from the banks for their statements of accounts and discovered that their accounts had been tampered with without their consent.

They claimed further that withdrawals in rapid succession had been made illegally from their accounts through different ATM cash machines of the banks. Justice Auta adjourned the suit till February 10, 2010 to allow other defendants filed their defence.