The Supreme Court has quashed a Federal High Court ruling that had, since 2014, awarded over N22 trillion against Union Bank and others.
The legal dispute began when Visana Nigeria Limited sued Union Bank, claiming it was owed nearly $8 million, with interest charged at 2.5 percent monthly from January 2000 until judgement day, and an additional 10 percent annually thereafter until full settlement.
Justice Stephen Jonah Adah, delivering the lead judgement backed by four other Justices, lamented that the lower courts’ failure to follow established legal principles had unnecessarily prolonged the case for more than 25 years.
The Supreme Court’s decision brings relief to Union Bank, the Central Bank of Nigeria, and the bank’s auditors, who had been concerned about the implications of the massive judgement on Union Bank’s financial health.
The dispute originated from Visana’s allegation that Metalloplastica Nigeria Limited, a Union Bank debtor, owed it $7.6 million as of December 1993. Visana also challenged a 1989 Deed of Debenture under which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica, arguing that the debenture was invalid since it allegedly lacked the required consent from Universal Trust Bank (which later became Union Bank).
The Federal High Court had on December 16, 2014, ruled against Union Bank, awarding Visana $7.6 million or its naira equivalent, with 4.25 percent monthly compound interest from January 2000 until the judgement, and 10 percent yearly interest thereafter.
Upon appeal, the Court of Appeal on April 16, 2021, reduced the award to $365,605.32 or its naira equivalent, with 4.25 percent monthly simple interest from December 31, 1993, to December 16, 2014, followed by 10 percent annual interest until the debt was cleared.
Still dissatisfied, Union Bank escalated the matter to the Supreme Court in 2021. The apex court finally ruled in the bank’s favor on Friday, April 25, 2025, nullifying the previous judgements.
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