A High Court has ordered Keystone Bank to pay N2 million in damages to a young woman in Ebonyi State after N96,000 meant for her school fees allegedly disappeared from her account.

The court also directed the bank to refund the N96,000 that was withdrawn from the account without her authorisation.

The incident dates back to 2022, when the student, Oluchi (surname withheld), had just secured admission to study Community Nursing. Her family deposited N96,000 into her Keystone Bank account to cover tuition.

However, on the final day of admissions, she visited the bank to withdraw the money and was informed that her account balance had dropped to 50 kobo.

According to the Obinna Udenwe who described the victim as his cousin, the development left the teenager distressed, as the funds represented her only chance to complete her registration.

“They chased her out of the bank with zero empathy. The bank staff claimed she withdrew the money herself or compromised her account,” he narrated in a statement.

He maintained that the student did not own an ATM card and had not shared her account details or received any suspicious messages that could suggest fraud.

When the matter was reported to the bank, staff allegedly insisted that the transaction had been carried out by the account holder or that her details had been compromised.

Unsatisfied with the response, the family reviewed the account statement and suspected internal irregularities. After several unsuccessful attempts to get the bank to investigate and refund the money, they engaged a lawyer, Barrister Chris Naru Osani, who formally wrote to the bank.

Although the bank acknowledged the complaint and said an investigation was ongoing, the family said no resolution was reached.

The student subsequently lost her admission for that academic session.

The family later filed a suit, asking the court to compel the bank to refund the missing funds and award damages for the loss and emotional distress caused.

During proceedings, Keystone Bank reportedly argued that the transaction was conducted through a USSD channel and suggested that the account had been compromised.

However, the claimant’s counsel told the court that analysis of the transaction showed it was not initiated through USSD and questioned the bank’s internal controls.

After months of litigation, the court ruled in favour of the claimant, ordering Keystone Bank to refund the N96,000 and pay N2 million in damages.

Reacting to the judgment, the family described the ruling as long overdue justice, saying they were prepared to continue the case if necessary.

“Many Nigerians lose money in banks daily — many do nothing. But we sued Keystone Bank and won,” the relative added.

The judgment has sparked conversations around customer protection, accountability and dispute resolution within Nigeria’s banking sector, with many observers saying the case highlights the challenges ordinary customers face when contesting unexplained withdrawals.

As of the time of filing this report, Keystone Bank had not publicly indicated whether it would appeal the decision.