By Ayomide Otitoju
The Supreme Court has overturned a Federal High Court ruling that awarded over N22 trillion against Union Bank and other parties in a legal dispute dating back to 2014.
The case stemmed from a suit filed by Visana Nigeria Limited, which claimed Union Bank owed approximately $8 million, accruing compound interest of 2.5% monthly from January 2000, and 10% per annum from the date of judgment until full repayment.
In the lead judgment delivered on Friday, April 25, 2025, Justice Stephen Jonah Adah, supported by four other Justices, criticised the lower courts for disregarding established legal precedent, a failure he said prolonged the case unnecessarily for over 25 years.
The Supreme Court’s decision is expected to ease concerns within the Central Bank of Nigeria (CBN), Union Bank’s auditors, and rating agencies, which had flagged the earlier ruling as a threat to the bank’s financial stability and going concern status.
The dispute traces back to allegations by Visana that Metalloplastica Nigeria Limited—a Union Bank borrower—owed it $7.6 million as of December 1993. Visana further challenged the validity of a 1989 Deed of Debenture that allowed Continental Merchant Bank to appoint a Receiver/Manager for Metalloplastica, claiming the document lacked the required prior consent from Universal Trust Bank (now Union Bank).
On December 16, 2014, the Federal High Court ruled in Visana’s favour, awarding $7.6 million (or the Naira equivalent) with 4.25% monthly compound interest from January 2000 and post-judgement interest at 10% per annum.
The Court of Appeal later reduced the judgment sum to $365,605.32, with pre-judgment simple interest at 4.25% monthly from December 1993 to December 2014, and the same 10% per annum thereafter.
Still dissatisfied, Union Bank appealed to the Supreme Court in 2021, ultimately securing a favourable ruling in 2025 that voided the previous judgments and brought long-awaited relief to the bank.
