The Supreme Court has nullified a Federal High Court judgment that had, since 2014, ordered Union Bank and other defendants to pay over ₦22 trillion in damages.
The Supreme Court’s decision effectively sets aside the earlier judgment, bringing a significant shift in the long-running financial dispute.
The case originated from a lawsuit filed by Visana Nigeria Limited, which alleged that Union Bank owed it approximately $8 million, BusinessDay reports.
The company claimed the debt accrued at an interest rate of 2.5 per cent per month, compounded from January 2000 until the court ruling, and thereafter at a rate of 10 per cent per annum until full settlement.
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 filed a lawsuit against several defendants, claiming that Metalloplastica Nigeria Limited, which had taken out a loan from Union Bank owed it a sum of $7,616,188.94 as of December 1993.
Visana also argued that a legal document known as the “Deed of Debenture,” issued on February 24, 1989, was invalid. This document allowed Continental Merchant Bank to appoint Chief R. U. Uche as the Receiver/Manager of Metalloplastica.
However, Visana contended that the appointment was made without the prior written approval of Universal Trust Bank, which later became part of Union Bank. This approval was required according to clause 13(f) of the original loan agreement between Metalloplastica and Universal Trust Bank.
As a result, Visana challenged the legitimacy of the appointment and the financial decisions made under this arrangement.
Judgment was delivered against Union Bank on December 16, 2014 for the sum of $7,616,188.94 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 first respondent (Visana Nigeria Limited) to rely on fresh evidence. The Appeal was heard, and judgment was delivered on April 16, 2021.
Judgement was reduced to the sum of $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.
Still dissatisfied with the judgment of the Court of Appeal, Union Bank further appealed to the Supreme Court in 2021.
Union Bank’s persistence paid off in the judgment delivered on Friday, April 25, 2025.