By Abiola Olawale
In a landmark ruling, the Supreme Court of Nigeria has nullified a Federal High Court judgment that awarded over N22 trillion against Union Bank and other defendants, bringing an end to a protracted commercial dispute spanning more than two decades.
The legal saga began when Visana Nigeria Limited filed a lawsuit against Union Bank, claiming entitlement to nearly $8 million, with a monthly compound interest of 2.5% from January 2000 until the judgment date.
On December 16, 2014, the Federal High Court ruled in favor of Visana, awarding $7.6 million (or its naira equivalent) with 4.25% monthly compound interest from January 2000, followed by 10% annual interest post-judgment.
This ruling ballooned the award to over N22 trillion, placing immense financial strain on Union Bank.
Union Bank appealed the decision, and on April 16, 2021, the Court of Appeal significantly reduced the award to $365,605.32 (or its naira equivalent), with 4.25% monthly simple interest from December 31, 1993, to December 16, 2014, and 10% annual interest thereafter.
Despite this reduction, the case remained contentious, controversial prompting further escalation to the Supreme Court.
The Supreme Court, in a unanimous decision led by Justice Stephen Jonah Adah and supported by four other justices, quashed the lower courts’ rulings, citing their failure to adhere to established legal and constitutional principles.
Justice Adah lamented that the case, which could have been resolved earlier, was unnecessarily prolonged for over 25 years due to judicial oversights.
“This litigation has lingered far too long. The two lower courts missed the opportunity to apply clear legal principles, thereby creating unnecessary complications,” he stated, with four other justices concurring.
