The Nigeria Deposit Insurance Corporation (NDIC) has filed two separate suits against Wema Bank at the Federal High Court in Lagos, seeking to recover assets valued at more than ₦125.38 billion linked to the defunct Gulf Bank Plc.
The actions, brought under the Failed Banks (Recovery of Debts and Financial Malpractices in Banks) Act, form part of the corporation’s long-running effort to liquidate assets of the collapsed lender nearly two decades after its licence was revoked.
At the centre of the dispute are 12 high-value properties in Banana Island and an alleged unauthorised payment of ₦401 million.
In the first suit, the NDIC claims six plots in Banana Island were acquired between 1998 and 2003 through Euston Wenberg Engineering Company Limited, which it describes as a shell company used by Gulf Bank.
The properties span Zones J, K, L and P and cover about 13,794.145 square metres. Using a market rate of ₦4.5 million per square metre, the corporation values them at ₦62.07 billion.
The corporation alleges the properties were later taken into Wema Bank’s custody as security for an interbank deposit of ₦771.79 million. However, a joint CBN and NDIC examination in September 2005 reportedly found no record confirming the deposit in Gulf Bank’s books.
NDIC said Wema Bank subsequently produced two managers’ cheques from Access Bank and Intercontinental Bank dated September 2005 totalling ₦250 million in favour of Euston Wenberg Engineering Limited.
The corporation argues the payment resembled a purchase rather than a recovery of a deposit and described the price as commercially implausible, noting that a single Banana Island property at the time was valued above ₦500 million.
The second suit concerns another six Banana Island plots acquired through Bacad Finance and Investment Limited, later renamed Supra Commercials Limited. NDIC said Gulf Bank injected ₦20 million into the firm in 2001 and a further ₦60 million in 2003, eventually holding more than 80 per cent of its shares.
Court documents state the properties were intended for a 72-flat luxury development called Bacad Estate in partnership with Shelter Afrique. NDIC claims Wema Bank later took custody of the plots without a valid mortgage, court order or proprietary interest and sold them for ₦524 million through managers’ cheques dated 2006 and 2007. The corporation described the figure as grossly implausible, saying each property was worth more than ₦4 billion at the time.
The NDIC is also seeking recovery of ₦401 million allegedly collected by Wema Bank from United Bank for Africa in September 2009. The corporation said it had earlier approved payment of ₦1,635,616.44 as the full outstanding deposit due to the bank as at 16 January 2006 and insists no further sums were owed.
Both suits ask the court to declare the alleged sales illegal, null and void, and to order payment of the current value of the properties within 30 days of judgment. In the alternative, NDIC seeks the return of the original certificates of occupancy. The second suit also demands repayment of the ₦401 million. Applications for committal of the bank’s Managing Director and Executive Directors have been filed in the event of non-compliance.
Wema Bank has filed a preliminary objection challenging the court’s jurisdiction. The bank argues the claims do not arise from any loan, credit facility or banking transaction as required under the Failed Banks Act and insists there is no debtor-creditor relationship between the parties.
The bank also maintains the property belonging to Bacad Finance and Investment Limited, a separate legal entity, and says any claim is statute-barred under the Limitation Law of Lagos State.
The Federal High Court is expected to rule on jurisdiction and other key issues when the matter resumes on 25 June 2026.
