The Paramount Ruler of Kurama Chiefdom in Kaduna State, His Royal Highness Yakubu Iliya Sauri, has dragged Keystone Bank Limited before the Kaduna State High Court over an alleged unauthorised loan and overdraft of N11,030,341.49, which he claimed was imposed on his account without his knowledge, consent or application.

The traditional ruler is seeking N100 million in damages, alongside several declaratory and injunctive reliefs, accusing the bank of breach of contract, negligence, reputational harm and what he described as unlawful banking practices. Blueprint reports

The suit, filed before the High Court sitting in Saminaka, also seeks an order directing the bank to reverse the disputed indebtedness, issue a public apology and submit to a forensic investigation over the transaction.

Monarch alleges loan imposed without consent

According to the originating court processes, Sauri alleged that Keystone Bank unlawfully credited his account with a loan or overdraft facility amounting to N11,030,341.49 without any application, mandate or authorisation from him.

The disputed facility, he claimed, was reflected in his account as of June 16, 2026, with the outstanding balance continuing to attract additional charges.

The monarch argued that at no time did he request or accept any loan or overdraft facility from the bank, insisting that the transaction amounted to a breach of the contractual relationship between a bank and its customer.

He is therefore asking the court to declare that the creation of the loan without his instruction was unlawful, null and void.

Claims reputation damaged

In the suit, the monarch, who described himself as a businessman in addition to his traditional role, alleged that the bank’s handling of the transaction portrayed him as someone who manipulated the bank’s information technology system.

He claimed the bank initially failed to disclose the transaction, issued conflicting account balances and later attributed the development to a “system-related glitch.”

According to him, such explanations projected him as an internet fraudster and subjected him to ridicule and reputational damage.

“The Defendant’s claim projects the Claimant as an internet fraudster who tampered with Keystone Bank’s ICT system, for which he is entitled to huge reputational damage compensation,” part of the court process stated.

Sauri further maintained that he only became aware of the alleged indebtedness after visiting the bank, insisting that he had consistently declined loan offers from the financial institution in the past.

Seeks reversal of N11m debt

The claimant is asking the court to compel Keystone Bank to immediately reverse and write off the disputed N11,030,341.49, together with any additional sums that may have accumulated on the account.

He also wants the court to declare that the bank had no legal authority to create a debit balance against his account without his express approval.

According to the monarch, the cancellation of debit interest amounting to N1,721,674.62, which covered the period between January and May 2026 after he protested the transaction, amounted to an admission of liability by the bank.

He urged the court to exonerate him from any responsibility arising from the disputed facility.

N100m damages, public apology demanded

Beyond the reversal of the alleged loan, Sauri is seeking substantial monetary compensation from the bank.

Specifically, he is asking the court to award:

N50 million as general damages for breach of contract, psychological trauma and reputational damage.
N30 million as special damages for alleged loss of business opportunities.
N20 million as punitive damages over what he described as the bank’s reckless conduct.
The monarch also wants the court to order Keystone Bank to publish a public apology in five television stations, five radio stations and five national newspapers.

In addition, he is requesting an order directing the temporary closure of Keystone Bank’s Saminaka branch pending the outcome of a forensic investigation into the disputed transaction.

He further seeks reimbursement of N20 million as litigation expenses and payment of 40 per cent post-judgment interest until the judgment sum is fully settled.

CBN sought as party in suit

The claimant is equally seeking to join the Central Bank of Nigeria (CBN) as a party in the suit.

According to him, the apex bank has a statutory responsibility under the Banks and Other Financial Institutions Act (BOFIA) to regulate financial institutions and protect customers from unlawful banking practices.

He urged the court to make declarations affirming the CBN’s supervisory role in ensuring accountability within the banking sector.

The writ was filed by Gloria Mabeiam Ballason, Esq., of MIVE Legals (Ballason Chambers), Kaduna.

Bank blames customer

Responding to enquiries, the Branch Manager of Keystone Bank in Saminaka, Suleiman Dari, confirmed that the bank had received the court processes.

The manager, however, disputed the monarch’s claims, alleging that the disputed indebtedness arose from repeated withdrawals and transfers carried out from the account over an extended period.

According to him, the account holder transferred funds to several beneficiaries, resulting in an outstanding debt of over N11 million owed to the bank.

Although he did not provide detailed explanations regarding the legal basis for the alleged overdraft or loan facility, the branch manager stated that the monarch was not the only customer whose account had benefited from the bank’s system allowing transactions beyond available balances.

He suggested that the transactions were enabled by the bank’s operating system, without elaborating on the circumstances under which such facilities were granted.

Matter awaits court hearing

As of the time of filing this report, Keystone Bank had yet to file a formal defence before the court.

The case is expected to test the legal obligations of financial institutions regarding the creation of overdraft facilities, customer consent and accountability in electronic banking transactions.

Legal observers say the outcome could have wider implications for banking operations, customer protection and the responsibilities of financial institutions in managing electronic account transactions.