AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Nigerian courts treat a bank as owing its customer a contractual duty to exercise reasonable care and skill, and not to release money without proper authority. In All States Trust Bank v BIU Community Bank (Court of Appeal, 9 April 2025) the court upheld a customer's claim over about ₦39 million in unauthorised withdrawals, and older authority such as Nigeria Advertising Service v UBA (1965) holds that a bank must re-credit a customer whose cheques were forged without the customer's negligence.
When money leaves your account without your authority, the first question is whether the bank should bear the loss. Nigerian courts have answered that question many times, in cases about forged cheques, unauthorised withdrawals and, more recently, cards and electronic channels. This guide summarises a small number of cases we could verify and the principles behind them. It is general information, not legal advice; a lawyer will look at more authorities and at the precise facts of your case.
The principle: care, skill and authority
The relationship between a bank and its customer is contractual. The bank holds your money and must pay it out only on your valid instructions. Two duties follow, and both appear in the headnotes of a 2025 Court of Appeal decision summarised by LawPavilion:
- a duty, under the bank's contract with its customer, "to exercise reasonable care and skill"; and
- a duty "to exercise due diligence and care as not to release money" without proper authority.
A senior advocate quoted by The Guardian in 2023 put it in plain terms: banks must keep deposited funds safe, and unauthorised withdrawals expose a bank to liability in negligence and for breach of contract.
Cases we could verify
All States Trust Bank Plc v BIU Community Bank Ltd (2025) LPELR-80869(CA)
The customer, BIU Community Bank, claimed about ₦39.07 million in unauthorised withdrawals and payments from its account and sued for breach of contract, breach of fiduciary duty and breach of the duty of care. The Federal High Court in Maiduguri found for the customer and dismissed the bank's counterclaim. The Court of Appeal, in a lead judgment by Ugochukwu Anthony Ogakwu JCA delivered on 9 April 2025, dismissed the bank's appeal. We saw only the headnotes, so we cannot set out the court's full reasoning.
Nigeria Advertising Service Ltd v United Bank for Africa Ltd (1965) 1 LLR 84
Cited by a lawyer in The Guardian's 2023 feature, this older case concerns forged cheques. The principle drawn from it: where forgeries were not due to the customer's negligence, "it is the duty of the Banker to credit the account of such a customer whose cheques had been forged." A forged signature is no authority at all, so the bank pays out its own money, not yours.
The limits of these cases
Case law turns on facts. Both cases above involved payments the customer had not authorised at all. Disputes over payments you did authorise, even under deception (for example, a transfer you made to a scammer), are harder, because the bank acted on a genuine instruction. Those cases tend to be argued on whether the bank should have spotted warning signs, and on the CBN's fraud rules rather than on forgery principles. See will your bank refund you after fraud.
Statute adds to the case law
The same Guardian feature cites section 37(3) of the Cybercrime (Prohibition, Prevention, etc.) Act 2015 as requiring a bank, on written notice of a disputed debit, to show written legal authority for it or reverse it within 72 hours. It also reports one lawyer's view that the Cybercrime Act places the burden of proving negligence on the customer in some electronic cases. These are lawyers' readings reported by a newspaper; we did not check the statute's text, so ask a lawyer how they apply to you.
What this means for a claim
| Question the court will ask | Why it matters | What helps you |
|---|---|---|
| Did you authorise the payment? | No authority, no right to debit | Prompt written denial; evidence of where you were |
| Was the instruction genuine? | Forged or fake instructions do not bind you | Signature specimens, device and login records from the bank |
| Did the bank take reasonable care? | Duty of care and skill | Unusual pattern the bank ignored; missing checks |
| Were you careless? | Customer negligence can shift the loss | Show you did not share PIN, OTP or password |
| Did you report promptly? | Delay can weaken a claim | Dated complaint, tracking number, CBN escalation |
Many cases never need a court. A written complaint that cites the duty of care and the bank's own records often produces a refund. If not, the CBN Consumer Protection Department is the next step, after two weeks; see how to complain about a bank or fintech. Court is the last resort, and the cases above show it can succeed.
Steps before you consider court
- Write to the bank denying authority for each debit, with dates and amounts.
- Ask the bank, in writing, for the authority it relied on: the instruction, the channel, the device, the authentication used.
- Keep a timeline and every reply. See evidence to gather in a payment dispute.
- Escalate to the CBN after two weeks if unresolved, using the CBN's complaint guide.
- Speak to a lawyer if the amount is significant; they can advise on limitation periods and the right court.
For insider fraud, where the bank's own staff took the money, see whether a bank is liable when its staff defraud you.
Questions people ask
Is a bank liable for unauthorised withdrawal in Nigeria?
Courts have held that a bank owes its customer a duty to exercise reasonable care and not to release money without authority. In All States Trust Bank v BIU Community Bank (2025), the Court of Appeal upheld a customer's claim over unauthorised withdrawals.
What happens if my cheque was forged?
The principle cited from Nigeria Advertising Service v UBA (1965) is that a bank must re-credit a customer whose cheques were forged, unless the forgery resulted from the customer's own negligence.
Can I sue my bank for negligence?
Yes, a customer can sue for breach of contract and negligence. Most disputes are resolved earlier through the bank's complaint process or the CBN Consumer Protection Department.
Does sharing my PIN affect my claim against the bank?
It can. Customer negligence, such as sharing a PIN or OTP, can shift some or all of the loss to the customer.
Sources
- LawPavilion: Bank liability for honouring cheques or withdrawals without customer authorisation (All States Trust Bank v BIU Community Bank, 2025) · accessed Oct 2026
- The Guardian Nigeria: Examining liability of bankers and customers in unauthorised withdrawals (28 Mar 2023) · accessed Oct 2026
- CBN: How to Lodge a Complaint (CPD/GEN/GUIDE/03, 24 Jan 2022) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.