Supreme Court has delivered final judgement on N22trn suit against Union Bank.
NewsOnline Nigeria reports that the Supreme Court has set aside a Federal High Court judgement in which over N22 trillion was awarded against Union Bank and other parties since 2014.
This Nigeria news platform understands that the judgement arose from a suit instituted by a company, known as Visana Nigeria Limited, which claimed that Union Bank was indebted to it in the sum of approximately $8 million at an interest rate of 2.5 per cent per month, compounded from January 2000 until judgement and, thereafter, at 10 per cent per annum from the date of judgement until the sum was fully paid.
Delivering the lead judgement of the Supreme Court, with which four other Justices agreed, Justice Stephen Jonah Adah regretted how non-adherence to a settled judicial precedent by the two lower courts had caused a simple matter to be in court for over 25 years.
The final determination of the case is expected to lay to rest the discomfort of the CBN and other regulators of Union Bank, its auditors and rating agencies on the possible impact of the judgement on the going concern status of the bank.
Visana instituted the suit against the defendants, alleging that Metalloplastica Nigeria Limited, a borrower from Union Bank, was indebted to it in the sum of $7,616,188.94 as at December 1993 and that the purported Deed of Debenture made on February 24, 1989, pursuant to which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica, was invalid, same having been procured “without the prior written consent of Universal Trust Bank and its successors-in title or assigns (being Union Bank) as provided in paragraph 13(f) of the original Debenture issued by Metalloplastica in favour of Universal Trust Bank.
Judgment was delivered against Union Bank on December 16, 2014, for the sum of USD7,616,188.94 or its equivalent in naira with pre judgement compound interest at the rate of 4.25 per cent per month from January 26, 2000, till the date of judgement and, thereafter, at the rate of 10 per cent on the judgement sum per annum from the date of the judgement till final liquidation of the debt.
The Court of Appeal later heard the application filed by the 1st respondent (Visana Nigeria Limited) to rely on fresh evidence.
The Appeal was heard, and judgement was delivered on April 16, 2021. Judgement was reduced to the sum of USD 365, 605.32 or its equivalent in naira, with pre-judgement with interest at 4.25 per cent per month simple interest from December 31, 1993, to December 16, 2014, and thereafter at the rate of 10 per cent per annum from the date of the judgement at the court below until final liquidation of the Judgment debt.
Dissatisfied by the judgement of the Court of Appeal, Union Bank further appealed to the Supreme Court in 2021.
The bank’s persistence paid off in the judgement delivered on Friday, April 25, 2025.
