By Aduragbemi Omiyale

Justice O.O. Abike-Fadipe of the Lagos State High Court in Ikeja has fined Union Bank of Nigeria for converting Nicon Investment Limited’s £130.7 million fixed deposit to offset the loan obtained by Global Fleet Oil and Gas Limited.

Global Fleet and Nicon Investment are companies owned by popular businessman and Senator representing Ondo South Senatorial District, Mr Jimoh Ibrahim.

The court, while giving judgement in suit LD/1074/2010 filed by Nicon Investment against Union Bank, ordered the lender to pay £1 million as damages for the “breach of its fiduciary duties to the claimant and negligence,” dismissing the bank’s counterclaim in its entirety with N10 million costs.

According to the judgement, “The defendant bank’s unilateral use of part of the claimant’s £130,720,557.06 to liquidate Global Fleet’s debt without the mandate and/or due authorisation of the claimant is wrongful, null and void.”

It held that, “Union Bank Plc ceases to have the power to pursue the alleged indebtedness upon the sale of the said alleged indebtedness to Asset Management Corporation of Nigeria (AMCON).”

But Union Bank, in a statement, disagreed with the judgement of the court, pledging to appeal the case at the appellate court.

“We wish to assure our customers, partners, and the public that Union Bank operates with the highest levels of professionalism, ethical conduct, and legal compliance in all our dealings.

“While we respect the authority of the court, we strongly disagree with the judgment delivered and have instructed our lawyers to file an appeal against it immediately.

“The court’s findings, including its position on the consolidation of indebtedness, locus standi, and third-party liability, are at variance with established legal principles and the bank’s understanding of the facts. We are confident in our legal position and intend to vigorously pursue all lawful avenues to ensure that justice is served.

“Union Bank had previously transferred the relevant debt obligations to AMCON, and we maintain that all actions taken in this regard were in line with applicable laws and banking practice.

“We reiterate our unwavering commitment to acting in good faith, protecting stakeholder interests, and preserving the integrity that has defined our institution for over a century. The

Bank remains resilient and focused on continuing to deliver excellent service and value to its customers.

“We appreciate the continued trust and support of all stakeholders as we navigate this legal process,” the statement signed by the company’s Chief Brand and Marketing Officer, Mrs Olufunmilola Aluko, said.

Business Post reports that Union Bank used the £130,682,918.93 fixed in Union Bank by Nicon Investment to clear the loan taken by Global Fleet.

Nicon Investment challenged this action in court, saying this was unlawful because the bank was not authorised to do so.

The investment firm informed that it suffered significant damages due to the bank’s actions, including other illegal charges and wrongful penalties, which deprived it of the opportunity to utilise the funds for property business and expansion.

But Union Bank argued that, “Both companies’ accounts were treated as related accounts with the knowledge and consent of both companies.”

The court agreed with Nicon Investment that Union Bank’s unilateral conversion of the funds “from the claimant’s fixed deposit account to US Dollars without the due authorisation and/or mandate of the claimant is wrongful, null and void,” emphasising that, “The pounds sterling fixed deposit account of the claimant is not tied to the indebtedness of Global Fleet and/or meant in any way or manner whatsoever to provide security for the said debt.”

By Modupe Gbadeyanka

From Thursday, July 10 to Friday, July 11, government officials, civil society organisations, the private sector, and development partners will be in Lagos for the 2025 Africa Social Impact Summit (ASIS).

The event is organised by The Alternative Bank in partnership with Sterling One Foundation and United Nations Nigeria.

It flagged-off today with a high-level roundtable and from tomorrow, stakeholders will brainstorm on how to proffer solutions that will drive tangible and scalable impact.

In addition to developing new frameworks for sustainable development, the summit will provide a platform for impact investors to finance existing African solutions tackling issues on climate change, circular economy, education, health, WASH (Water, Sanitation, and Hygiene), renewable energy, and agriculture.

The Alternative Bank is throwing its weight behind this to reaffirm its commitment to driving sustainable development across Africa.

“The theme of this year’s summit, Scaling Action, speaks volumes. It reflects an urgent and deliberate shift from rhetoric to results, from bold conversations to bold execution.

“Now is the moment for real, bold solutions to tackle issues such as poverty, food insecurity, climate change, and inequality,” the Executive Director for North at The Alternative Bank, Mr Garba Mohammed, said at a press conference held at the United Nations House in Abuja.

“At The Alternative Bank, we believe that impact is the new bottom line. As a purpose-driven, ethically grounded, and specialised financial institution, we have aligned our strategy and operations with the SDGs and Agenda 2063.

“These are not just aspirational frameworks to us; they are action guides that shape how we invest, how we collaborate, and how we serve,” he added.

Since its inception, The Alternative Bank continues to champion sustainable development through strategic interventions that empower youth, women, and smallholder farmers. The Bank plays a leading role in transforming Africa’s food systems, by enabling sustainable agricultural practices, providing financing, capacity-building, and market access to smallholder farmers.

Additionally, AltBank’s ACT Youth Digital Empowerment Program equips thousands of young people with digital, entrepreneurial, and life skills, positioning them as job creators and champions of sustainable development. For women, the Bank’s initiatives, such as the Matazalla Women’s Mobility Initiative, Althaven, and the Light Her Program, break barriers by providing eco-friendly electric tricycles, capital, mentorship, and networks to women entrepreneurs.

These efforts align with the United Nations SDGs and the African Union’s Agenda 2063, contributing to a more inclusive, prosperous, and sustainable Africa.

By Aduragbemi Omiyale

The N200 billion recapitalisation requirements set by the Central Bank of Nigeria (CBN) for financial institutions in the category of Stanbic IBTC Holdings Plc, which has a banking subsidiary, Stanbic IBTC Bank Limited, has been met.

This followed the N181.4 billion generated by the member of Standard Bank Group through a rights issue.

The financial services provider had sought to raise N148.7 billion from the exercise to meet the minimum capital base required by lenders with national banking licence, but it was oversubscribed by 21.9 per cent, demonstrating the confidence investors have in the organisation.

In March 2024, the CBN mandated that commercial banks with international authorisation raise their capital base to N500 billion, while national banks are required to reach N200 billion, with banks operating at regional level required to achieve a minimum capital threshold of N50 billion.

The injection of N140 billion into Stanbic IBTC Bank from the parent company further enhances the bank’s capacity to meet the growing demands of its customers and increasingly competitive market dynamics.

According to the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, “The injection of the new capital into the banking subsidiary is a positive development.”

“This will enable the bank to seize additional opportunities within the industry and enhance our Single Obligor Limit (SOL).

“We deeply appreciate the dedication and hard work of our regulators, issuing houses, and all other stakeholders. We extend our sincere gratitude for your continued support,” he added.

On his part, the acting chief executive of Stanbic IBTC Holdings, Mr Kunle Adedeji, said, “The turnout and participation of existing shareholders taking up their rights was impressive such that the rights issue was oversubscribed by 21.9 per cent to the tune of N181.4 billion. Our shareholders’ interest shows the confidence they continue to have in the brand.”

It was stated that the successful recapitalisation of the bank is not just about numbers, but resilience, commitment, and a shared vision for the future.