By Jemimah Wellington, JKNewsMedia Reporter
UNION BANK of Nigeria has secured a major reprieve as the Supreme Court of Nigeria set aside a Federal High Court judgement that had awarded over N22trillion against the financial institution and other parties, ending a legal contest that had dragged on for a quarter of a century.
The ruling stemmed from a dispute initiated by Visana Nigeria Limited, which claimed that the UBN owed it approximately $8 million, accruing interest at 2.5 per cent per month compounded from January 2000, and 10 per cent annually post-judgement until settlement.
Justice Stephen Jonah Adah, delivering the lead judgement endorsed by four other Justices, expressed dismay that the two lower courts had overlooked established judicial precedent, prolonging a matter that should have been resolved decades earlier.
The Supreme Court’s decision is expected to ease long-standing concerns from the Central Bank of Nigeria, auditors, and rating agencies regarding the potential threat the judgement posed to Union Bank’s going concern status.
The dispute originated from allegations by Visana that Metalloplastica Nigeria Limited, a borrower from UBN, owed it $7,616,188.94 as of December 1993. Visana challenged the validity of a Deed of Debenture executed in 1989 by Continental Merchant Bank appointing Chief R. U. Uche as Receiver/Manager over Metalloplastica’s assets.
It contended that the Deed was defective, claiming it had been obtained without prior written consent from Universal Trust Bank, Union Bank’s predecessor.
In December 2014, the Federal High Court ruled in favour of Visana, ordering Union Bank to pay the sum with compound interest at 4.25 per cent monthly from January 2000 until judgement, and thereafter at 10 per cent per annum until the debt was fully settled.
Following an appeal, the Court of Appeal, on 16 April 2021, revised the awarded sum down to USD 365,605.32, with simple interest calculated at 4.25 per cent monthly from December 1993 to the judgement date, and 10 per cent annually thereafter until full liquidation.
Nevertheless, UBN pressed further, contesting the outcome before the Supreme Court.
Their persistence culminated in the Supreme Court’s ruling on Friday, 25 April 2025, finally vacating the judgement and bringing a long and complex litigation journey to a final closure.
