Banking
CBN Begs Court Not to Compel First Bank to Pay N123b Debt
By Modupe Gbadeyanka
A Federal High Court sitting in Owerri, Imo State, has been urged by the Central Bank of Nigeria (CBN) not to make absolute the temporary garnishee order it granted six chiefs representing the Ogoni community, compelling it (CBN) to pay the sum of N122.53 billion on behalf of First Bank of Nigeria Limited (First Bank).
According to ThisDay, CBN’s lead counsel, Professor Fabian Ajogwu (SAN), while responding to a new suit filed by the judgment creditors (Ogoni chiefs) seeking to commit First Bank, its chairman, Mrs Ibukun Awosika, and Managing Director, Dr Sola Adeduntan, to prison for alleged contempt for not paying them the sum of over N122.53 billion, stated that making the order absolute and compelling the CBN to pay out the huge sum would be against the interest of justice because the matter was still pending at the Supreme Court.
There are concerns that compelling the CBN to pay the N122.53 billion from First Bank’s funds domiciled with the central bank could have far-reaching consequences for Nigeria’s oldest and biggest lender by assets and deposits, and a systemic impact on the rest of the financial system and wider economy.
But in a statement yesterday, the bank said it was a responsible and law abiding corporate citizen with the capacity and character to, on a consistent basis, meet its obligations as and when due.
The case, which started in 1991, was originally instituted at the Rivers State High Court, Nchia Division, by six indigenes of Ogoniland against the Royal Dutch Shell Plc, Netherlands, Royal Dutch Shell Plc, United Kingdom, and Shell Petroleum Development Company (SPDC) of Nigeria Limited over alleged oil spills that occurred when Shell operated in the community.
The plaintiffs alleged that it was the same case that led to the Ogoni struggle championed by the late Mr Ken Saro Wiwa.
Judgment was eventually entered in their favour against Shell by the state High Court, whereupon the defendant appealed against the said judgment.
However, in 2001, a fresh suit was commenced by some representatives of the Ogoni people before the Federal High Court in Port Harcourt presided over by Justice Ibrahim Buba claiming N17 billion and interests on the said sum for the losses allegedly caused by the oil spills.
Justice Buba, after listening to the submissions of the parties in the suit, in his judgment in 2010, awarded N17 billion to the representatives of the Ogoni people.
The court equally granted the Ogoni chiefs 25 per cent interest charge on the principal sum of about N17 billion.
SPDC then appealed against the judgment and applied for a stay of execution of the judgment pending the appeal.
As a condition for granting the stay of execution, the court required Shell’s bankers, First Bank, to provide a guarantee of the judgment sum.
This condition was complied with. But Shell’s appeal failed at the Court of Appeal on technical grounds, ostensibly because it filed its processes out of time and without regularising them.
When the oil giant proceeded to the Supreme Court, it also failed as the court upheld the decision of the Court of Appeal.
Accordingly, last December, the judgment creditors (Ogoni representatives) commenced garnishee proceedings at the Federal High Court in Owerri presided over by Justice Lewis Allagoa.
They urged the CBN to pay them N122.53 billion out of First Bank’s account in its custody.
THISDAY gathered that they calculated the principal sum of N17 billion and the accrued 25 per cent interest charge per annum to arrive at the sum of N122,533,403,392.
In January, Justice Allagoa granted them a temporary order (garnishee nisi) ordering the CBN to pay them the sum from First Bank’s account with it.
The judgment creditors, Chief Isaac Osaro Agbara and five others (representing the Ogoni community) are represented by Mr. Lucius Nwosu (SAN) as the lead counsel, while First Bank is represented by Chief Wole Olanipekun (SAN) as lead counsel.
Shell, against whom the judgment was made and who wants to be joined in the garnishee proceedings, having filed a motion for joinder, is represented by Mr Wale Akoni (SAN), while the garnishee, CBN, which is allegedly in custody of the N122.53 billion is represented by Ajogwu.
When the suit came up for hearing before Justice Lewis-Allagoa of the Federal High Court in Owerri last Friday, Ajogwu, filed a motion before the court to set aside the temporary garnishee order on the grounds that the CBN was not indebted to and does not have the private funds of First Bank in its custody.
However, Akoni’s motion for Shell to be joined in the garnishee proceedings could not be taken.
Ajogwu contended that the consent of the Attorney General of the Federation was not obtained to attach the money alleged to be in the custody of a public officer, contrary to the Sheriffs and Civil Process Act.
He also argued that the funds alleged to be in the custody of the CBN could only be statutory funds, which cannot be attached for payment of judgment sums.
He further averred that in view of the several suits and appeals in the matter, the proceedings were an abuse of the court’s process and amounted to forum shopping.
In his motion, counsel to First Bank, Olanipekun, also asked the court to set aside the temporary garnishee order.
He argued that the court lacks the jurisdiction to hear the case, and therefore asked the court to transfer the case to Abuja or Lagos.
But in his response, Nwosu stated that the Ogoni judgment creditors were entitled to the benefit of their judgment and opposed all motions by the CBN, Shell and First Bank.
After hearing all the parties in the case, Justice Allagoa adjourned the matter to April 11, 2018, for the continuation of hearing.
But in a statement sent to THISDAY yesterday, First Bank’s Head of Marketing and Corporate Communications, Mrs Folake Ani-Mumuney, said her organisation was a responsible law abiding citizen with the capacity and character to meet its obligations as and when due.
She said the events culminating in the issuance of the bank guarantee at the request of Shell and all the lawsuits arising from the case were before the courts.
She expressed confidence that the courts would dispense justice in the cases in line with constitutional obligations.
According to her, “First Bank is a responsible and law abiding corporate citizen with the capacity and character to, on a consistent basis, meet its obligations as and when due.
“The events culminating in First Bank’s issuance of the said bank guarantee at the request of Shell Petroleum Development Company Limited as well as all matters arising therefrom and associated therewith are subject matters of different lawsuits including Suit Nos. FHC/OW/CS/C4/2017, FHC/L/NJR/1/2018 and Appeal Nos. SC/511/2017 and SC/731/2017 which are ongoing.
“We are confident that the various courts will dispense justice in the cases in line with their constitutional obligations.”
Also, a source conversant with the case explained that First Bank’s appeal was still at the Supreme Court and hearing on the case will come up on October 16, 2018.
He said irrespective of the fact that the Supreme Court had not ruled on the case, the counsel to the Ogoni chiefs, Nwosu, has been pushing for First Bank to honour the guarantee.
He said First Bank, however, has maintained that the parties have the right to exhaust their rights in law and that includes going to the Supreme Court.
According to the source, this was another attempt by Nwosu to stampede the bank into paying the N122.53 billion.
Opening up on other tactics employed by the counsel to the Ogoni chiefs to compel First Bank to cough up the sum despite the fact that the matter is still being adjudicated, he said Nwosu had also petitioned the two legislative chambers of the National Assembly.
“Not stopping at that, he has petitioned the central banks of other countries where First Bank has operations; he has initiated winding up proceedings against the bank in Lagos and Abuja which he discontinued; he took an action against First Bank at the Federal High Court in Port Harcourt which he abandoned; he obtained the garnishee at the Federal High Court in Owerri seeking to attach First Bank’s funds at the CBN; then last week he filed contempt proceedings against the chairman and managing director of the bank.
“All these he has done irrespective of the case at the Supreme Court. But First Bank, from what I can tell, is confident in the judiciary to do the right thing,” he said.
By Adedapo Adesanya
Nigeria’s newly merged lender, ProvidusUnity Bank, says it hopes to accelerate financial inclusion, strengthen lending capacity, and support Nigeria’s economic growth.
The new bank, made up of Providus Bank and Unity Bank, is set to commence operations as a single unified institution following the successful completion of their business combination and the conclusion of all required regulatory, shareholder, and judicial processes.
A statement from the bank on Sunday stated that the newly formed entity represents a consolidated banking institution positioned to strengthen capitalisation, expand national coverage, deepen financial inclusion, and support Nigeria’s long-term economic ambitions.
The merger brings together Providus Bank’s innovation-driven, customer-centric service model and digital capabilities with Unity Bank’s extensive geographic reach and established market presence, creating a broader platform for retail, SME, and corporate banking services across the country.
The development aligns with ongoing reforms in Nigeria’s financial sector aimed at strengthening institutional resilience, safeguarding depositor confidence, improving competitiveness, and building banks capable of supporting economic transformation.
The bank expressed appreciation to the Central Bank of Nigeria (CBN) for its role in facilitating the transaction and for its commitment to strengthening the banking system. It also acknowledged the support of shareholders, customers, employees, and other stakeholders.
ProvidusUnity Bank said the merger is expected to enhance Nigeria’s financial sector capacity to mobilise investment, support enterprise development, expand access to credit, and contribute to the country’s aspiration of building a trillion-dollar economy.
Earlier this month, the Supreme Court ordered the transfer of all assets, liabilities and undertakings, including real properties, of Unity Bank to Providus Bank in accordance with the approved Scheme of Merger. The merger between the two lenders was challenged by customers and shareholders of the affected banks, Mr Suleiman Abubakar and Mr Mohammed Goni Modu.
The apex court held that the appeal lacked merit and accordingly dismissed it in its entirety, while imposing costs of N10 million in favour of each respondent. As part of the merger arrangements, the apex court approved a consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
For customers, the new bank said the integration will deliver expanded access, improved service delivery, stronger technology infrastructure, broader banking channels, and a wider national footprint designed to improve consistency and efficiency of services.
It added that customers should expect continuity in service in the immediate term, with gradual access to enhanced products and broader capabilities over time.
For employees, the bank said the transaction represents continuity, opportunity and stability, adding that it remains committed to retaining talent, preserving institutional knowledge and supporting career growth within the new organisation.
By Modupe Gbadeyanka
The need for stronger collaboration to address climate change, advance conservation and equip young people to lead a more sustainable future has been emphasised by Union Bank.
At a symposium organised to commemorate 2026 World Environment Day in partnership with the Nigerian Conservation Foundation (NCF) at the Lekki Conservation Centre in Lagos, the financial institution urged businesses to match their commitments with action and pointed to the decisive role of finance in shaping a greener economy.
“As a bank that has been part of Nigeria’s story for over a century, Union Bank recognises that sustainable development and environmental responsibility must go hand in hand,” the company’s Chief Brand and Marketing Officer, Mrs Olufunmilola Aluko, stated.
“We believe businesses have a role to play not only in what they say, but also in what they do. Banks play an important role because they help determine where capital flows. The choices financial institutions make about what to fund and what to encourage help shape the kind of economy we build. This is a responsibility we take seriously at Union Bank, and it is one of the reasons gatherings like these matter to us,” she added.
In his keynote address, the Director General of NCF, Mr Joseph Daniel Onoja, framed conservation as a matter of human survival, noting that “nature has placed all the models that we need to be able to live well in it.”
“When we talk about nature conservation or environmental conservation, we’re saying human conservation because nature, Mother Earth, will always take care of herself.
“If we don’t take care of it, it will take care of itself by getting rid of us. Now, it is in our best interest to take care of the earth and learn from her, because she has provided everything we need to do so,” he further submitted.
A panel session featuring secondary school students from within and beyond Lagos brought an intergenerational dimension to the day. The students urged businesses and individuals to prioritise climate-conscious investments and cleaner energy sources, and exhibited innovations that turned waste into interior décor and clean energy.
Their work offered a vivid illustration of Sustainable Development Goal 12 on responsible consumption and production, and of the creativity a younger generation brings to the climate conversation.
This year’s World Environment Day theme, Inspired by Nature. For Climate. For Our Future, and the event, reflected a growing global consensus, captured in Sustainable Development Goal 13 on climate action and Sustainable Development Goal 17 on partnerships, that no single institution can meet the climate challenge alone.
By Adedapo Adesanya
The Bank of Agriculture (BOA) has unveiled a strategic roadmap aimed at modernising its operations, expanding grassroots financial inclusion and accelerating agricultural transformation in line with the Federal Government’s food security agenda.
The chief executive of the bank, Mr Ayodeji Sotinrin, disclosed this in a statement issued on Friday that the institution is implementing operational upgrades and forging strategic partnerships to improve the delivery of agricultural intervention programmes and empower smallholder farmers across the country.
According to the statement, the BOA is strengthening its agricultural delivery architecture by expanding collaborations with state-level delivery platforms, licensed input suppliers and international development partners.
A key component of the strategy is a recently signed Memorandum of Understanding with the United Nations Development Programme (UNDP), aligning the bank’s revitalisation agenda with the UN agency’s Integrated Smart States Programme.
The bank said the partnership would help transform Nigeria’s agricultural sector into an investment-ready system capable of attracting blended and climate finance while supporting the One Million Hectare Tree Crop Initiative, described as a presidential priority expected to boost commercial agriculture, job creation and export diversification.
“Our vision for the Bank of Agriculture is to deploy capital in an intelligent, smart, and highly efficient way to reposition the institution as a catalyst for food security and rural prosperity. We are bringing everyone into the financial net, especially the youthful population of farmers in our hinterlands, to create a new, resilient food system for Nigeria,” Mr Sotinrin said.
The bank also disclosed that it had overhauled its verification framework to eliminate fraudulent beneficiaries and ensure interventions reached genuine farmers.
According to the statement, the new credit profiling process incorporates Bank Verification Number checks, Know Your Customer protocols and GPS farm mapping to strengthen transparency and accountability in loan disbursement.
Commenting on the initiative, the National President of the All Farmers Association of Nigeria, Muhammad Magaji, endorsed the verification measures while urging quicker loan disbursement.
“The All Farmers Association of Nigeria recognises the critical role the Bank of Agriculture plays in shielding our farmers from exorbitant commercial interest rates. While we continuously advocate for faster disbursement cycles to match planting seasons, we stand with the BOA on the need for strict verification.
“It is the only way to ensure that these interventions reach the genuine smallholder farmers who actually till the soil, rather than ‘political farmers.’ We remain committed to working closely with the BOA management to fine-tune this delivery framework,” he added.
The BOA further said it is modernising its nationwide operations by deploying digital farmer systems, agency banking models and solar-powered infrastructure across its 110 branches to improve service delivery in rural communities.
It added that recent ICT infrastructure support from the UNDP would strengthen its digital transformation efforts and enable the bank to provide financial and extension services directly to farmers.
The bank said it would continue engaging commodity associations, verified grassroots cooperatives and other agricultural stakeholders through town hall meetings and working groups to identify genuine beneficiaries and support the implementation of the National Agri-food System Investment Plan.
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