Wale Igbintade 

The Supreme Court has overturned a 2014 Federal High Court judgment that awarded more than N22 trillion against Union Bank and other parties.

The case arose from a suit filed by Visana Nigeria Limited, which claimed that Union Bank was indebted to it in the sum of approximately $8 million, with interest at 2.5 percent per month compounded from January 2000 until judgment, and thereafter at 10 percent per annum until full payment.

Delivering the lead judgment, with which four other Justices concurred, Justice Stephen Jonah Adah lamented that the lower courts’ failure to adhere to established judicial precedents caused a simple matter to linger in court for over 25 years.

The Supreme Court’s final decision is expected to ease concerns previously expressed by the Central Bank of Nigeria (CBN), Union Bank’s auditors, and credit rating agencies regarding the potential impact of the lower court’s judgment on the bank’s going concern status.

Visana had sued Union Bank and others, alleging that Metalloplastica Nigeria Limited – a borrower from Union Bank – was indebted to it in the sum of $7,616,188.94 as of December 1993.

 It also challenged the validity of a Deed of Debenture made on February 24, 1989, under which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica, claiming the debenture was invalid because it lacked the prior written consent of Universal Trust Bank (now Union Bank), as required under paragraph 13(f) of the original debenture agreement.

On December 16, 2014, the Federal High Court ruled against Union Bank, awarding Visana $7,616,188.94 or its naira equivalent, with compounded pre-judgment interest at 4.25 percent per month from January 26, 2000, until judgment, and 10 percent post-judgment interest per annum thereafter. However, Union Bank appealed.

 The Court of Appeal, after considering Visana’s application to tender fresh evidence, reduced the judgment sum to $365,605.32 or its naira equivalent, with simple pre-judgment interest at 4.25 percent per month from December 31, 1993, to December 16, 2014, and post-judgment interest at 10 percent per annum until final liquidation.

Still dissatisfied, Union Bank proceeded to the Supreme Court in 2021. 

The bank’s persistence was rewarded when the apex court, on Friday, April 25, 2025, finally set aside the judgment against it.

​