Following the freeze of RiseVest bank accounts alongside some other fintech companies in mid August by the Central Bank of Nigeria (CBN), a Federal High Court in Abuja has ordered that the CBN unfreeze the bank accounts of RiseVest immediately.
Recall that the CBN got an ex-parte motion from a high court in Abuja ruled by Justice Ahmed Mohammed, accusing the fintech companies of “illegal foreign exchange transactions”, which has been a major cause of the naira decline against the US dollar.
The Current Verdict
In the recent lawsuit, the parties involved are named CBN Governor (Plaintiff/Respondent) V Rise Vest Technologies Ltd (1st Defendant/Applicant) & five Others.
The judgement to unfreeze the account of RiseVest was decided based on a Motion on Notice filed by RiseVest Technologies that requested the court to release an interim freezing order granted by the court on August 17, 2021, in Suit No: FHC/ABJ/CS/822/2021.
Rist Vest Technologies’ lawyer, Mr Seni Adio (SAN), argued that no evidence has been presented by the CBN to back up the accusation.
However, Mr Mathew Onoja, counsel for CBN, debated that the August 17, 2021, decision were in tandem with Section 97 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2021, which allowed the Plaintiff/Respondent to invoke the Court’s jurisdiction via an ex parte application. Adding that the ex-parte orders are proper, lawful, and valid.
Justice Taiwo O. Taiwo ruled in favor of Adio’s argument stating that the CBN could not depend on a simple circular to freeze a company’s bank account if it was utilizing its bank accounts to trade in cryptocurrencies.
Justice Taiwo in his ruling stated,“I have perused the counter affidavit of the Respondent and I see that the reason for freezing the account of the applicant is based on the alleged infraction of the circular of the CBN.
“Can this court decide this application based on public policy as being urged on it by the learned counsel for the respondent? I think not.
“I hereby discharge the interim freezing order of this court made on August 17, 2021, made against the defendant/ applicant.”
Similar fintech companies in the lawsuit Bamboo, Trove and Chaka have also had their accounts unfrozen.
