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Union Bank of Nigeria has won a N20.7 billion debt recovery case against a group of oil marketers, following a ruling by the Federal High Court in Lagos that upheld the bank’s claims. The judgment, delivered recently, affirmed the bank’s right to recover long-outstanding credit facilities issued for petroleum product transactions.
According to court filings, the dispute stemmed from loan facilities extended by Union Bank to finance the importation of refined petroleum products. The marketers, whose identities were disclosed in court documents, allegedly defaulted on repayment despite several restructuring efforts by the bank.
Justice of the Federal High Court found in favor of Union Bank, granting the institution the full amount claimed, including accrued interest and costs. The ruling is one of the largest debt recovery judgments in recent years involving a Nigerian commercial bank.
Union Bank’s management welcomed the verdict, describing it as a significant affirmation of its commitment to sound lending practices and accountability. The bank emphasized that it would continue to pursue similar cases to safeguard depositor and investor funds.
Industry observers say the outcome is a strong message to corporate borrowers, particularly in the downstream oil sector, where defaults on trade-related loans have increased. It also highlights the importance of robust credit risk management within Nigeria’s financial system.
Financial analysts note that the verdict could embolden other banks to seek judicial redress over bad debts, instead of relying solely on out-of-court settlements that often drag for years. They believe this development will contribute to greater credit discipline in the market.
Legal practitioners have praised the court for its clarity and timeliness in the judgment, noting that it strengthens confidence in Nigeria’s commercial legal environment. The case, they say, reinforces the principle that financial obligations must be met regardless of market volatility or sector-specific challenges.
For Union Bank, this win represents both a legal and reputational milestone, demonstrating its ability to enforce its rights while upholding transparency and due process. The N20.7 billion recovery, once executed, will improve liquidity and could positively influence investor perception of the bank’s financial health.
According to court filings, the dispute stemmed from loan facilities extended by Union Bank to finance the importation of refined petroleum products. The marketers, whose identities were disclosed in court documents, allegedly defaulted on repayment despite several restructuring efforts by the bank.
Justice of the Federal High Court found in favor of Union Bank, granting the institution the full amount claimed, including accrued interest and costs. The ruling is one of the largest debt recovery judgments in recent years involving a Nigerian commercial bank.
Union Bank’s management welcomed the verdict, describing it as a significant affirmation of its commitment to sound lending practices and accountability. The bank emphasized that it would continue to pursue similar cases to safeguard depositor and investor funds.
Industry observers say the outcome is a strong message to corporate borrowers, particularly in the downstream oil sector, where defaults on trade-related loans have increased. It also highlights the importance of robust credit risk management within Nigeria’s financial system.
Financial analysts note that the verdict could embolden other banks to seek judicial redress over bad debts, instead of relying solely on out-of-court settlements that often drag for years. They believe this development will contribute to greater credit discipline in the market.
Legal practitioners have praised the court for its clarity and timeliness in the judgment, noting that it strengthens confidence in Nigeria’s commercial legal environment. The case, they say, reinforces the principle that financial obligations must be met regardless of market volatility or sector-specific challenges.
For Union Bank, this win represents both a legal and reputational milestone, demonstrating its ability to enforce its rights while upholding transparency and due process. The N20.7 billion recovery, once executed, will improve liquidity and could positively influence investor perception of the bank’s financial health.