The Nigerian Deposit Insurance Corporation (NDIC) and Wema Bank have become embroiled in a legal battle over disputed properties in Banana Island, Lagos, with the assets estimated to be worth about N63 billion.
The dispute has led to two separate lawsuits filed at the Federal High Court in Lagos by NDIC, acting in its capacity as liquidator of the defunct Gulf Bank Plc.
The legal action forms part of efforts by the corporation to recover and liquidate assets linked to the failed bank, more than two decades after its collapse.
NDIC Claims Property Worth N63bn
In one of the lawsuits, NDIC alleged that Wema Bank took custody of a 14,000-square-metre property linked to Gulf Bank.
According to the corporation, with land in the area valued at approximately N4.5 million per square metre, the property is estimated to be worth about N63 billion.
The agency stated that the assets were allegedly acquired through Euston Wenberg Engineering Company Limited, described as a shell company associated with Gulf Bank.
NDIC argued that the properties were used to secure an inter-bank deposit valued at N771.78 million. However, investigations reportedly found no evidence of such a deposit in Gulf Bank’s records.
Questions Over Missing Records
The corporation disclosed that a joint examination conducted by the Central Bank of Nigeria and NDIC in September 2005 failed to establish records supporting the existence of the alleged deposit.
According to NDIC, explanations provided by the defunct bank at the time were considered unsatisfactory and lacked documentary evidence.
The corporation further maintained that Gulf Bank acquired six Banana Island plots between 1998 and 2003 through Euston Wenberg Engineering Company Limited and insisted the properties remained beneficially owned by the bank.
Second Lawsuit Challenges Sale of Properties
The second suit concerns another six Banana Island properties allegedly acquired through Bacad Finance and Investment Limited, now known as Supra Commercials Limited.
NDIC stated that Gulf Bank had significant ownership in the company, controlling over 80 percent of its shares.
The corporation alleged that Gulf Bank invested N20 million in the company in 2001 to increase share capital and later injected another N60 million in 2003.
According to NDIC, Wema Bank later sold the disputed properties for N524 million through managers’ cheques issued between 2006 and 2007.
The agency argued that the sale was conducted without any valid mortgage agreement, court order, or proprietary interest.
NDIC Questions Sale Value
NDIC also challenged the reported sale value of the properties, describing the amount as unrealistic.
The corporation argued that each of the disputed Banana Island properties was valued at more than N4 billion at the time, making the N524 million transaction figure questionable.
The case is expected to determine ownership rights and the legitimacy of transactions involving the disputed assets linked to the defunct Gulf Bank.
