The Supreme Court has set aside a 2014 Federal High Court judgement that awarded over N22 trillion against Union Bank and others in a long-running legal dispute initiated by Visana Nigeria Limited.
Delivering the lead judgement on Friday, April 25, 2025, Justice Stephen Jonah Adah, supported by four other Justices, criticised the lower courts for failing to adhere to established judicial precedents, a lapse he said unnecessarily prolonged the case for over 25 years.
The ruling brings relief to Union Bank, the Central Bank of Nigeria (CBN), financial regulators, auditors, and rating agencies, who had expressed concerns about the potential impact of the massive judgement on the bank’s financial stability.
The dispute began when Visana Nigeria Limited sued Union Bank, claiming that Metalloplastica Nigeria Limited—a borrower from Union Bank—owed it approximately $8 million. Visana also challenged the validity of a Deed of Debenture used by Continental Merchant Bank to appoint a Receiver/Manager over Metalloplastica’s assets, arguing it lacked Union Bank’s prior written consent.
In December 2014, the Federal High Court ruled against Union Bank, awarding Visana $7,616,188.94, with pre-judgement compound interest of 4.25% per month from January 2000 and 10% annual post-judgement interest until full payment.
Union Bank appealed the decision, and in April 2021, the Court of Appeal reduced the award to $365,605.32, along with simple interest from December 1993 to December 2014, and 10% annual interest thereafter.
Still dissatisfied, Union Bank proceeded to the Supreme Court, where its persistence ultimately paid off with Friday’s ruling, effectively nullifying the previous judgements.
The Supreme Court’s decision is expected to finally close a case that has hung over Union Bank’s financial health for more than two decades.
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