Banking
Customers Slam N7bn Suit on Adam Nuru-led FCMB
By Modupe Gbadeyanka
Two customers of First City Monument Bank (FCMB), Sunlek Investment Limited and Sunsteel Industries Limited, have slammed a N7 billion suit on the lender headed by Mr Adam Nuru.
The companies accused the financial institution of breach of contract concerning credit facilities they obtained from the bank some years ago.
In a report by Global Excellence Magazine, it was stated that in a 126-paragraph statement of claim accompanied by another 27 paragraphs of a witness sworn to on oath and filed before a Federal High Court sitting in Lagos by a Lagos lawyer, Mr John Olusegun Odubela (SAN), the two firms claimed they operated loan accounts with FCMB upon which disbursement was made for all letters of credit/loan facility granted to them by the bank for the importation of raw materials.
However, since May 23, 2013, when the bank entered into an agreement to grant them loan and open a loan facility account for them till date, they have not been given the particulars of the loan facility account or has any statement of account of this loan account been made available to them.
The plaintiffs further alleged that by commitment letter dated May 23, 2013 and the term sheet for facility duly signed/executed by the two parties, FCMB committed and undertook to fund on fully-underwritten basis the debt finance of $1.5million and N422.5million Thereafter, other loans facilities were granted to the companies by the bank.
It was stated that the total amount of the letters of credit opened by the bank in favour of the companies were $8.0 million out of which said sum the companies contributed 10 percent based on the terms of the grant of the various offer for facility utilized to open letters of credit from March 22, 2013 to September 2017. The loans facilities were well secured.
The plaintiffs contended that from the available records available to them, it was reflected that they have fully repaid their indebtedness to the bank.
However, the companies said they were surprised when they received the bank’s letter that their indebtedness to the bank as at March 14, 2019 was in the sum of N1.13 billion and that the debt should be liquidated within 14 days, despite the fact that they have fully repaid the loan they took from the bank.
As a result of this, they engaged the services of an accounting firm to audit their account. They claimed that their letter and their solicitor’s letter requesting for statements of accounts of the loan accounts from the FCMB were not responded to and that from the forensic analysis of their accounts, it was observed that they were not in any way indebted to the bank in the sum of N1.13 billion as claimed by the lender.
The plaintiffs said from the forensic audit report, it was discovered that there were two transactions carried out on letter of credit, wherein substantial volume of the product was damaged. The value of items purchased by the letters of credit was in the sum of $1,999,965 for the importation of cold rolled steel strips, galvanized steel strips and Zinc wire from Chemetals (HK) limited Unit 1105H/F Lippo Center 89, Queens Way Hong Kong.
The companies said FCMB was solely and unilaterally liable to undertake all the risk insurance policy Clause A for the consignment/raw material to be imported by virtue of the letter of credit.
According to them, the bank solely negotiated insurance policy obtained for the products purchased and appointed Mansard Insurance Plc to provide insurance cover Clause C for the importation of the consignment.
It said upon taken delivery of the consignment after payment of custom duties and port charges, it was discovered that a large volume of the said consignment was in various forms of damaged conditions.
The plaintiffs claimed they informed the bank about the damaged consignment and the need to pursue insurance claim for the damage consignment and that FCMB requested for documents from the officers of the plaintiffs, which were sent to them to pursue the claim.
In the statement of claim, the plaintiffs said however, the agent of the bank sent a report to them saying from the nature of damages to some of the products, the insurance policy, being a Clause C policy as undertaken by the bank, was not sufficient to cover the loss from the said damages to the products.
The total value of the consignment damaged was in the sum of $628,386.23 and N336.14 million.
The plaintiffs said FCMB ought to have undertaken an all risk insurance policy cover with the insurance company. As a result of the damages to the consignment, they were not fit for use and could not be refined in the plaintiffs’ machine and remained in their factory as junk or waste material.
The plaintiffs averred that they have suffered financial loss as a result of the breach of contract in the sum of N884.9 million which has negatively affected their business operation since 2014 till date.
They also averred that they are entitled to claim damages for breach of contract against the bank who had by its various acts of breaches of the various letters of offer for facility caused great loss to their business. Consequently, the plaintiffs claim against FCMB jointly and severally are as follows:
“General damages in the sum of N5 billion.
“A declaration that the plaintiffs are not indebted to the bank in any sum premised on the fact that they have settled all their indebtedness on the facilities granted to them by the bank.
“A declaration that the bank breach the terms of letter of credit and is liable for the loss of the letters of offer on importation, in the sum of $1,999,865.
“A declaration that the bank is liable to refund to the plaintiffs N884.9 million being the losses uncured on the damaged consignment purchased through letters of credits and failure and refusal of the bank to obtain an all risk insurance policy for the shipment of the said consignment.
“An order for the payment of N826,996,135.00 being the total sum wrongly debited on the plaintiffs account by the bank.
“An order of the court restraining FCMB from appointing and or registering any instrument of appointment of an official receiver or any instrument whatsoever made for the purpose of enforcing the security for the payment of alleged indebtedness in the sum of N1.13 billion being allegedly claimed against the plaintiffs by the bank and a cost of litigation assessed at N250 million.”
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja on Friday, the Governor of the apex bank, Mr Yemi Cardoso, said the document will take effect from June 1, 2026.
He said it was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Mr Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Mr Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector.
He added that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The CBN Governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market.
“Reserves are reserves. They are not what you look to fund a market,” he said.
The CBN Governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
On his part, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Mr Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Mr Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, the introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Mr Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has approved the appointment of Mr Julius Omodayo-Owotuga to the board of First Bank of Nigeria Limited as an executive director.
A statement from the company said the appointment of Mr Omodayo-Owotuga became effective on Wednesday, May 13, 2026.
He was appointed to the board of the subsidiary of First Holdco Plc to further strengthen its leadership capacity across strategic finance, governance, risk management, and institutional transformation.
Before now, he served on the board of First Holdco as a non-executive director between 2021 and 2026.
The appointee brings to the board 24 years of experience spanning banking and financial services, infrastructure finance, power, oil & gas, and audit and consulting.
His appointment, according to the notice to the Nigerian Exchange (NGX) Limited, reflects the Bank’s continued commitment to strong governance, disciplined execution, financial resilience, and sustainable long-term growth.
He most recently served as deputy chief executive of Geregu Power Plc, Nigeria’s first listed power generation company, where he played a pivotal role in institutional transformation, governance strengthening, capital market positioning, operational optimisation, and major financing initiatives, including the company’s landmark listing on NGX.
Mr Omodayo-Owotuga previously served as group executive director, Finance & Risk Management at Forte Oil Plc (now Ardova Plc), where he was instrumental in the company’s financial and operational transformation, leading strategic restructuring, capital raising, treasury optimisation, enterprise risk management, and governance improvement initiatives that strengthened long-term shareholder value.
His professional career also includes roles at Africa Finance Corporation, Standard Chartered Bank, KPMG Professional Services and MBC International Bank (Now First Bank Nigeria Limited), providing him with deep experience in institutional finance, treasury management, financial controls, regulatory engagement, and corporate advisory.
Mr Omodayo-Owotuga is a CFA Charter Holder, KPMG-trained Accountant, and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), and the Institute of Credit Administration. He is also a member of the Institute of Directors (IoD) Nigeria and a Certified Management Accountant.
He holds a Doctorate in Business Administration, a Master’s in Business Administration and a Bachelor’s degree in Accounting. He is an alumnus of Saïd Business School, University of Oxford, IE Business School, Geneva Business School, and the University of Lagos.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
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