Supreme Court overturns ₦22 trillion judgment against Union Bank

The Supreme Court has set aside a Federal High Court judgment that awarded over ₦22 trillion against Union Bank and other parties in a long-standing legal dispute dating back to 2014.

The case originated from a suit filed by Visana Nigeria Limited, which alleged that Union Bank owed it approximately $8 million, with interest compounded at 2.5% per month from January 2000 until judgment, and subsequently at 10% per annum until full payment.

Delivering the lead judgment, Justice Stephen Jonah Adah, supported by four other Justices, criticized the lower courts for failing to adhere to established legal precedents. He noted that this oversight prolonged what should have been a straightforward matter for over 25 years.

The Supreme Court’s ruling is expected to ease regulatory and financial uncertainties for Union Bank. The Central Bank of Nigeria (CBN), the bank’s auditors, and rating agencies had expressed concern over the potential impact of the previous judgment on the bank’s financial stability and going concern status.

The legal dispute stems from Visana’s claims that Metalloplastica Nigeria Limited, a borrower from Union Bank, owed it $7.6 million as of December 1993. Visana also challenged the validity of a Deed of Debenture executed in 1989, under which a receiver/manager was appointed by Continental Merchant Bank. According to Visana, the deed was invalid as it lacked the required written consent from Universal Trust Bank (Union Bank’s predecessor or assignee).

On December 16, 2014, a Federal High Court awarded Visana $7.6 million (or its naira equivalent), with pre-judgment compound interest at 4.25% per month from January 2000, and 10% annual interest post-judgment until full repayment.

Union Bank appealed the decision. In April 2021, the Court of Appeal partially granted relief, reducing the award to $365,605.32 with simpler interest terms: 4.25% per month from December 31, 1993, to December 16, 2014, and 10% per annum thereafter.

Still dissatisfied, Union Bank escalated the case to the Supreme Court in 2021. The apex court delivered its final ruling on April 25, 2025, in favor of the bank, bringing a close to the decades-long litigation.