A Federal High Court ruling against Union Bank and other parties from 2014 that awarded more than N22 trillion has been overturned by the Supreme Court. The ruling resulted from a lawsuit filed by Visana Nigeria Limited, which asserted that Union Bank owed it about $8 million at an interest rate of 2.5% per month compounded from January 2000 until the judgement and then at 10% annually from the judgement date until the entire amount was paid.
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Justice Stephen Jonah Adah delivered the Supreme Court’s lead judgement, which was concurred upon by four other Justices. He expressed concern that a straightforward case had been pending for more than 25 years due to the two lower courts’ failure to follow a known legal precedent. It is anticipated that the case’s ultimate ruling will allay concerns about the judgment’s potential effects on Union Bank’s ability to continue as a going concern held by the CBN, other regulators, auditors, and rating agencies.
As stated in paragraph 13(f) of the original Debenture issued by Metalloplastica in favour of Universal Trust Bank, Visana filed a lawsuit against the defendants, claiming that Metalloplastica Nigeria Limited, a borrower from Union Bank, owed it $7,616,188.94 as of December 1993 and that the alleged Deed of Debenture made on February 24, 1989, by which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica, was invalid because it was obtained “without the prior written consent of Universal Trust Bank and its successors-in title or assigns (being Union Bank).”
On December 16, 2014, a judgement was rendered against Union Bank for USD 7,616,188.94 or its equivalent in Naira, plus pre-judgment compound interest at a rate of 4.25 percent per month from January 26, 2000, until the judgement date, and then at a rate of 10 percent on the judgement amount annually from the judgement date until the debt was finally liquidated. Later, the Court of Appeal heard the first respondent’s (Visana Nigeria Limited) request to rely on new evidence.
On April 16, 2021, the appeal was heard and a decision was rendered. The judgement was reduced to USD 365, 605.32 or its equivalent in Naira with pre-judgement interest at a simple interest rate of 4.25 percent per month from December 31, 1993, to December 16, 2014, and then at a rate of 10 percent per year from the date of the judgement at the court below until the judgement debt was finally liquidated.
In 2021, Union Bank filed an appeal with the Supreme Court, still unhappy with the Court of Appeal’s decision. Union Bank’s perseverance paid off in the ruling that was handed down on Friday, April 25, 2025.
