ABUJA, April 28 (AGCNewsNet) – The Supreme Court of Nigeria has set aside a Federal High Court ruling that awarded over N22 trillion against Union Bank and other parties, bringing a close to a case that has lingered for more than two decades.

In a unanimous decision delivered on Friday, Justice Stephen Jonah Adah, speaking for the five-member panel, criticized the lower courts for departing from established judicial precedent, causing what he described as an unnecessarily prolonged litigation of over 25 years.

The lawsuit originated from Visana Nigeria Limited, which alleged that Union Bank was indebted to it by about $8 million at an interest rate of 2.5% per month, compounded from January 2000 until judgment, and 10% per annum thereafter until full payment.

Union Bank’s legal victory is expected to ease concerns for its regulators, auditors, and rating agencies, who had raised alarms about the potential impact of the hefty judgment on the bank’s financial health and operational stability.

The dispute stemmed from a 1993 debt by Metalloplastica Nigeria Limited, a Union Bank borrower, and disagreements over the validity of a Deed of Debenture involving Continental Merchant Bank’s appointment of a Receiver/Manager.

In 2014, the Federal High Court ruled in favor of Visana, awarding USD7.6 million plus compounded pre-judgment interest, amounting to over N22 trillion. On appeal, the Court of Appeal reduced the award to USD365,605.32, with simple interest at 4.25% per month and post-judgment interest of 10% per annum.

Unsatisfied with the reduction, Union Bank pursued the case to the Supreme Court, which ultimately overturned the earlier rulings, providing much-needed relief to the bank.

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