The Supreme Court of Nigeria has overturned a judgment of over N22 trillion previously awarded against Union Bank and other parties, bringing an end to a protracted legal battle that has lasted more than two decades.
In the landmark ruling delivered by Justice Stephen Jonah Adah, with unanimous concurrence from four other Justices, the apex court nullified the decision of the Federal High Court and the subsequent ruling by the Court of Appeal. The original case, filed by Visana Nigeria Limited, had accused Union Bank of being indebted to it in the sum of approximately $8 million, with interest compounding from January 2000.
Justice Adah lamented the failure of the lower courts to adhere to settled judicial precedents, a misstep that he said prolonged what should have been a straightforward case for more than 25 years. “This is a classic example of how judicial delays and deviations from precedent can escalate simple commercial disputes into decades-long burdens,” he stated.
The original judgement, delivered by the Federal High Court on December 16, 2014, awarded Visana Nigeria Limited the sum of $7.6 million (or its naira equivalent), with compound interest of 4.25 per cent monthly from January 2000 and post-judgment interest of 10 per cent per annum until the debt was fully liquidated. The total amount had ballooned to over N22 trillion over the years.
The Court of Appeal later modified the judgement in 2021, reducing the award to $365,605.32 with simple interest at 4.25 per cent monthly from December 1993 to December 2014, and 10 per cent per annum thereafter. Despite the reduction, Union Bank remained unsatisfied and pursued the matter to the Supreme Court.
Union Bank’s appeal, filed in 2021, culminated in a final victory on April 25, 2025, when the Supreme Court set aside the judgments of both the Federal High Court and the Court of Appeal, effectively exonerating the bank from the decades-old financial liability.
The case originated from a complex transaction involving Metalloplastica Nigeria Limited, a borrower from Union Bank, and a disputed Deed of Debenture executed in 1989. Visana had contended that the appointment of a Receiver/Manager by Continental Merchant Bank was invalid without the prior written consent of Union Bank, the successor-in-title to Universal Trust Bank.
Legal experts and financial regulators welcomed the Supreme Court’s decision, which is expected to alleviate the concerns of the Central Bank of Nigeria (CBN), auditors, and credit rating agencies regarding Union Bank’s financial stability and going concern status.
The ruling marks a significant moment in Nigeria’s judicial and financial history, reaffirming the role of the Supreme Court in correcting systemic errors and reinforcing the importance of judicial consistency in commercial litigation.