The Supreme Court has set aside a Federal High Court judgment that awarded more than N22 trillion against Union Bank and other parties since 2014.
The case arose from a suit filed by Visana Nigeria Limited, which claimed Union Bank owed it around $8 million. Visana alleged the debt accumulated interest at 2.5% per month from January 2000 until judgment, and 10% per annum thereafter.
Justice Stephen Jonah Adah delivered the lead judgment, with four other Justices agreeing. He criticized the lower courts for failing to follow established precedents, which caused a simple case to drag on for over 25 years.
The Supreme Court’s ruling is expected to ease concerns at the Central Bank of Nigeria, Union Bank’s auditors, regulators, and rating agencies about the bank’s financial stability.
Visana had sued, claiming Metalloplastica Nigeria Limited, a borrower from Union Bank, owed it $7.6 million as of December 1993.
Visana also challenged the Deed of Debenture dated February 24, 1989. It argued that Continental Merchant Bank wrongly appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica without obtaining Universal Trust Bank’s prior written consent, as required under the original Debenture terms.
Appeals and Final Relief for Union Bank
On December 16, 2014, the Federal High Court ruled against Union Bank. It awarded $7.6 million or its Naira equivalent, plus compound interest at 4.25% monthly from January 26, 2000, until judgment. It also imposed 10% yearly interest from the judgment date until full payment.
Visana later applied to the Court of Appeal to admit fresh evidence. After reviewing the case, the Appeal Court reduced the judgment on April 16, 2021.
It awarded $365,605.32 or its Naira equivalent, plus simple interest at 4.25% monthly from December 31, 1993, to December 16, 2014. Interest would continue at 10% per year until the debt’s full settlement.
Union Bank, still dissatisfied, appealed to the Supreme Court in 2021. Its persistence paid off when the Supreme Court ruled in its favor on Friday, April 25, 2025.
