The Supreme Court has overturned a Federal High Court ruling that had awarded over N22 trillion against Union Bank and other involved parties since 2014.
The case stemmed from a lawsuit filed by Visana Nigeria Limited, which alleged that Union Bank owed it about $8 million, accumulating interest at 2.5 percent monthly from January 2000 until judgement, and 10 percent annually thereafter until full payment.
Delivering the lead judgement, Justice Stephen Jonah Adah, supported by four other Justices, criticized the lower courts for ignoring established judicial precedents, which he said prolonged a relatively straightforward case for over 25 years.
This Supreme Court decision is expected to ease concerns for the Central Bank of Nigeria, Union Bank’s auditors, and rating agencies, who had been worried about the impact of the judgement on the bank’s financial stability.
Visana Nigeria Limited had initiated the lawsuit, claiming that Metalloplastica Nigeria Limited—a borrower from Union Bank—owed it $7.6 million as of December 1993.
Visana also challenged the validity of a Deed of Debenture created in 1989, under which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager for Metalloplastica, arguing that it was done without the mandatory written consent from Universal Trust Bank (later succeeded by Union Bank), as stipulated in the original loan agreement.
On December 16, 2014, the Federal High Court ruled against Union Bank, ordering payment of $7.6 million or its naira equivalent, along with 4.25 percent monthly compound interest from January 26, 2000, until judgement, and 10 percent yearly interest thereafter until full repayment.
Following an appeal, the Court of Appeal, on April 16, 2021, revised the judgement, reducing the amount to $365,605.32 or its naira equivalent.
The revised judgement carried a 4.25 percent simple interest per month from December 31, 1993, to December 16, 2014, and 10 percent annual interest afterward.
Union Bank, still dissatisfied with the outcome, took the matter to the Supreme Court in 2021.
The bank’s persistence was finally rewarded when the apex court delivered its ruling on Friday, April 25, 2025, setting aside the previous judgements.