The Supreme Court has overturned a 2014 Federal High Court judgement that awarded over N22 trillion against Union Bank of Nigeria and other parties, marking a significant legal victory for the embattled financial institution.
The case, which has dragged on for more than two decades, began when Visana Nigeria Limited sued Union Bank, alleging it was owed nearly $8 million, with interest calculated at 2.5 percent monthly from January 2000 until the date of judgment, and an additional 10 percent annually until full settlement.
Delivering the lead judgment, Justice Stephen Jonah Adah, supported by four other Justices of the Supreme Court, criticized the lower courts for failing to apply well-established legal principles, which he said contributed to the unnecessary prolongation of the matter for more than 25 years.
The Supreme Court’s decision has brought much-needed relief to Union Bank, the Central Bank of Nigeria (CBN), and the bank’s auditors, all of whom had raised concerns about the potential financial and systemic risks posed by the initial massive award.
The dispute traces back to 1993, when Visana alleged that Metalloplastica Nigeria Limited, a debtor to Union Bank, owed it $7.6 million. Visana further contested the validity of a 1989 Deed of Debenture through which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica, arguing that the transaction lacked the necessary consent from Universal Trust Bank (later acquired by Union Bank).
In a controversial ruling on December 16, 2014, the Federal High Court found in favor of Visana, awarding it $7.6 million or its naira equivalent, with compound interest of 4.25 percent monthly from January 2000 until the date of judgment, and 10 percent simple interest yearly thereafter.
Union Bank, dissatisfied with the decision, appealed. On April 16, 2021, the Court of Appeal adjusted the award, reducing it to $365,605.32 or its naira equivalent, along with simple interest of 4.25 percent monthly from December 31, 1993, until the judgment date, followed by 10 percent annual interest until final payment.
Still not satisfied, Union Bank took the case to the Supreme Court in 2021. After a thorough review, the apex court ruled on April 25, 2025, fully setting aside the previous judgments and dismissing Visana’s claims.
The landmark ruling is expected to stabilize Union Bank’s financial outlook and reaffirm the importance of strict adherence to legal principles in commercial disputes.
