The Supreme Court has set aside a longstanding judgment that awarded more than ₦22 trillion against Union Bank and other parties following a dispute that has spanned over two decades.
The decision delivered on Friday, April 25, 2025, effectively nullified earlier rulings by the Federal High Court and the Court of Appeal which had found the bank liable for a debt claim initiated by Visana Nigeria Limited.
Visana had originally sued Union Bank over an alleged indebtedness arising from transactions involving Metalloplastica Nigeria Limited, a borrower linked to Union Bank.
The company claimed a sum of approximately $8 million at an interest rate of 2.5 percent per month compounded from January 2000 and later 10 percent per annum post-judgment.
Delivering the lead judgment, Justice Stephen Jonah Adah noted that the lower courts had failed to properly apply established judicial precedent, leading to unnecessary litigation that lasted over 25 years.
Four other Justices concurred with the ruling.
The Supreme Court’s decision is expected to alleviate concerns previously raised by the Central Bank of Nigeria, Union Bank’s auditors and credit rating agencies regarding the financial stability and going concern status of the institution.
The dispute originated from Visana’s challenge of a Deed of Debenture executed in February 1989, which appointed a receiver for Metalloplastica Nigeria Limited.
Visana alleged that the appointment was invalid without the consent of Universal Trust Bank, whose rights Union Bank had later assumed.
Following the Federal High Court ruling in December 2014, Union Bank was ordered to pay $7.6 million or its naira equivalent with compounded interest rates that sharply escalated the total liability.
On appeal, the Court of Appeal in April 2021 reduced the judgment sum to $365,605.32 with pre-judgment simple interest of 4.25 percent per month from December 1993 to December 2014 and post-judgment interest of 10 percent per annum until full payment.
Union Bank subsequently escalated the matter to the Supreme Court, where it challenged the validity of the lower court decisions.
The apex court’s verdict in favor of Union Bank marks the final resolution of the protracted dispute.
The Supreme Court ruling restores confidence among Union Bank’s stakeholders while reinforcing the importance of adherence to judicial precedents in commercial dispute resolutions.
