The Supreme Court has nullified a Federal High Court ruling that imposed a judgment of over N22 trillion against Union Bank and other parties, a case that had been ongoing for more than 25 years. This ruling stems from a lawsuit filed by Visana Nigeria Limited, which alleged that Union Bank owed approximately $8 million, with interest compounding at 2.5% monthly since January 2000. Following the judgment, the interest was set to increase to 10% per annum until the debt was fully settled.
Justice Stephen Jonah Adah, delivering the lead judgment on April 25, 2025, expressed regret that the case, originally a simple matter, had dragged on for such a long period due to the failure of two lower courts to follow established judicial precedents. His ruling was backed by four other justices.
This final decision is expected to bring relief to the Central Bank of Nigeria (CBN), regulatory bodies, Union Bank’s auditors, and rating agencies who had been concerned about the potential impact of the judgment on the bank’s financial standing.
The case began when Visana Nigeria Limited accused Metalloplastica Nigeria Limited, a borrower from Union Bank, of owing over $7.6 million as of December 1993. The dispute also involved a Deed of Debenture, which Visana argued was invalid, having been executed without the required consent from Universal Trust Bank (now Union Bank).
In December 2014, the Federal High Court ruled against Union Bank, ordering payment of the debt with compounded interest. The Court of Appeal later reduced the judgment sum to $365,605.32 in April 2021, though Union Bank continued its appeal to the Supreme Court, which ultimately led to the dismissal of the case.
