Kaduna Traditional Ruler Sues Keystone Bank Over Alleged ₦11m Unauthorized Loan, Demands ₦100m Compensation

KADUNA — The Paramount Ruler of Kurama Chiefdom in Kaduna State, His Royal Highness Yakubu Iliya Sauri, has instituted a legal action against Keystone Bank Limited over an alleged unauthorized loan and overdraft of ₦11,030,341.49 reportedly placed on his account without his knowledge or approval.

In the suit filed before the Kaduna State High Court sitting in Saminaka, the monarch is seeking ₦100 million in damages, alleging breach of contract, negligence, reputational damage, and unlawful banking practices.

According to court documents, Sauri claimed the disputed loan appeared in his account as of June 16, 2026, despite never applying for or consenting to any loan or overdraft facility. He maintained that the alleged debt has continued to accumulate charges, describing the transaction as illegal and a violation of the contractual relationship between the bank and its customer.

The monarch is asking the court to declare the loan null and void, compel Keystone Bank to reverse the alleged indebtedness, issue a public apology, and subject the transaction to a forensic investigation.

Sauri also alleged that the bank initially failed to explain the transaction, later attributing it to a “system-related glitch.” He argued that the bank’s explanation portrayed him as someone who manipulated its information technology system, causing serious reputational damage.

The traditional ruler, who also identified himself as a businessman, insisted he had previously rejected loan offers from the bank and only became aware of the alleged debt after visiting the branch.

As part of the reliefs sought, he requested the court to order the immediate cancellation of the ₦11.03 million debt and all accrued charges. He further argued that the bank’s decision to reverse ₦1,721,674.62 in debit interest after he protested the transaction amounted to an admission of wrongdoing.

The monarch is also demanding ₦50 million in general damages for breach of contract and emotional distress, ₦30 million for alleged business losses, and ₦20 million in punitive damages for what he described as reckless conduct by the bank.

Additionally, he wants Keystone Bank to publish a public apology across five television stations, five radio stations, and five national newspapers. He also asked the court to order the temporary closure of the bank’s Saminaka branch pending a forensic investigation, alongside ₦20 million in litigation costs and 40 percent post-judgment interest.

Sauri further requested that the Central Bank of Nigeria (CBN) be joined as a party to the suit, arguing that the apex bank has a statutory duty under the Banks and Other Financial Institutions Act (BOFIA) to regulate banks and protect customers from unlawful banking practices.

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

Responding to the allegations, Keystone Bank’s Saminaka Branch Manager, Suleiman Dari, confirmed that the bank had received the court documents but denied any wrongdoing.

According to him, the alleged indebtedness resulted from repeated withdrawals and transfers carried out by the account holder, leaving an outstanding balance of over ₦11 million. He added that the monarch was not the only customer whose account processed transactions beyond available balances, attributing the situation to the bank’s operating system.

As of the time of filing this report, Keystone Bank had not submitted a formal defence before the court.

The case is expected to address key issues surrounding customer consent, electronic banking operations, and the legal responsibilities of financial institutions in granting overdraft facilities.