Supreme Court Overturns N22 Trillion Judgement Against Union Bank
The Supreme Court of Nigeria has overturned a long-standing Federal High Court ruling that awarded over N22 trillion against Union Bank and other parties, effectively bringing an end to a legal battle that has spanned more than two decades.
The case originated from a suit filed by Visana Nigeria Limited, which alleged that Union Bank was indebted to it in the sum of approximately $8 million, accruing compound interest at 2.5 percent per month from January 2000, and subsequently 10 percent per annum after judgment until full payment.
Delivering the lead judgment, Justice Stephen Jonah Adah, supported by four other justices, criticized the two lower courts for failing to adhere to established judicial precedents — a lapse that caused a simple commercial dispute to linger in court for 25 years.
The Supreme Court’s decision is expected to provide relief to Union Bank, the Central Bank of Nigeria (CBN), financial regulators, auditors, and rating agencies concerned about the potential impact of the earlier judgment on the bank’s financial health and its “going concern” status.
The original dispute centered around debts allegedly owed by Metalloplastica Nigeria Limited to Visana, and the validity of a Deed of Debenture that resulted in the appointment of a Receiver/Manager over Metalloplastica’s assets.
On December 16, 2014, the Federal High Court had entered judgment against Union Bank for the principal sum of $7,616,188.94, with compounded pre-judgment interest at 4.25 percent per month, and post-judgment interest at 10 percent per annum until liquidation.
In 2021, the Court of Appeal partly reduced the judgement sum to USD 365,605.32, calculated with simple interest, but still ruled against Union Bank.
Unsatisfied, Union Bank took the matter to the Supreme Court, where, after persistent efforts, it secured a final victory with the judgment delivered on Friday, April 25, 2025.
