Supreme Court Overturns N22 Trillion Judgment Against Union Bank, Ending Protracted Litigation

The Supreme Court of Nigeria has set aside the judgment of the Federal High Court that had awarded over N22 trillion against Union Bank of Nigeria Plc and other parties, bringing an end to a legal dispute that had persisted for more than 25 years.

The dispute was initiated by Visana Nigeria Limited, which alleged that Union Bank was indebted to it in the sum of approximately $8 million, claiming interest at a compounded monthly rate of 2.5 percent from January 2000, and a post-judgment interest of 10 percent annually until full payment.

Delivering the lead judgment, Justice Stephen Jonah Adah, supported by four other Justices, noted with concern the lower courts’ departure from settled judicial principles, which unnecessarily prolonged the dispute. He stressed that such judicial missteps had caused undue hardship and uncertainty for Union Bank, its regulators, and associated financial institutions.

The final decision provides significant relief for Union Bank, the Central Bank of Nigeria (CBN), external auditors, and credit rating agencies, who had raised alarms over the potential ramifications of the judgment on the bank’s financial stability.

The underlying litigation arose from claims by Visana against Union Bank, asserting that Metalloplastica Nigeria Limited—a debtor of Union Bank—owed it $7,616,188.94 as of December 1993. Visana also contested the validity of a Deed of Debenture executed in 1989, arguing that requisite consent from Universal Trust Bank (Union Bank’s predecessor) had not been obtained.

In 2014, the Federal High Court awarded judgment in favor of Visana with substantial compounded interest, resulting in the staggering N22 trillion figure. Although the Court of Appeal reduced the award to USD 365,605.32 in 2021, Union Bank pursued a further appeal to the Supreme Court.

Delivering its verdict on 25 April 2025, the Supreme Court found in favor of Union Bank, setting aside all previous judgments and finally resolving a legal battle that had weighed heavily on the institution’s operations for over two decades.

After more than two decades of courtroom battles, Union Bank has emerged victorious at the Supreme Court, as Nigeria’s apex court quashed a judgment that had slammed over N22 trillion against the bank.

The suit, filed by Visana Nigeria Limited, alleged that Union Bank owed it around $8 million, with compound interest stacking up from January 2000 and a 10 percent annual interest added after judgment. The initial 2014 ruling against Union Bank sent shockwaves through the banking sector, especially given the monstrous N22 trillion figure once calculations were made.

Delivering the decisive ruling on Friday, 25 April 2025, Justice Stephen Jonah Adah, speaking for the panel of five Justices, criticized the lower courts for ignoring well-established legal precedents, allowing a simple commercial dispute to snowball into a national controversy.

The win brings huge relief not only to Union Bank but also to the Central Bank of Nigeria (CBN), financial auditors, and credit rating agencies, who had all worried about the impact such a liability could have had on the bank’s survival.

The root of the saga dates back to a 1993 debt involving Metalloplastica Nigeria Limited. Visana claimed it was owed over $7.6 million and challenged the legitimacy of a 1989 debenture agreement.

In 2014, the Federal High Court ruled against Union Bank with hefty compounded interest. The Court of Appeal trimmed the amount in 2021 to USD 365,605.32, but Union Bank refused to back down. Their perseverance finally paid off with the Supreme Court tossing out the earlier rulings and clearing the bank’s name.

With the cloud of a trillion-naira liability now lifted, Union Bank can focus squarely on its future without the burden of a decades-old judgment hanging over its head.

Stay informed, Stay ahead with The Ameh News