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.

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In contrast, the banks generated a total of ₦4.18 trillion in interest income during the quarter. Interest income is derived from lending activities, while interest expense captures the cost banks incur for accessing funds, including deposits and borrowings.

Among the banks, Access Holdings led with the highest interest income at ₦964.6 billion—up 58.6% from Q1 2024. However, its interest expense jumped 71.3% to ₦760.47 billion, narrowing its net interest margin.

Zenith Bank posted ₦837.6 billion in interest income, marking a 71.5% growth, while interest expenses rose 35.3% to ₦246.45 billion. First HoldCo Plc followed with ₦625.3 billion in income (up 40%) and ₦260.09 billion in expenses (up 18.6%).

UBA recorded ₦599.8 billion in interest income, up 36%, while expenses surged 77% to ₦247.96 billion. GTCO also saw a 41% rise in income to ₦386 billion, with expenses up 45.4% at ₦79.03 billion.

Fidelity Bank grew its income by 58% to ₦256.1 billion, while expenses rose by 28.6% to ₦90.65 billion. Stanbic IBTC Holdings, in a rare exception, cut its interest expense by 21.4% to ₦30.58 billion despite a 55.8% rise in income to ₦180.5 billion, indicating improved funding efficiency.

FCMB Group posted the sharpest rise in expenses—up 81.2% to ₦126.87 billion—on income growth of 71% to ₦214.4 billion. Wema Bank reported ₦110.3 billion in income (up 59%) and ₦53.74 billion in expenses (up 24%).

Commenting on the trend, Teslim Shitta-Bey, Chief Economist at Proshare Nigeria, clarified that net interest income—rather than gross expenses—remains the key indicator of a bank’s financial health.

“Interest expense alone doesn’t determine a bank’s ability to lend. What truly matters is the net spread between interest earned and interest paid,” he said, adding that tax liabilities are secondary so long as banks maintain profitability.

Shitta-Bey also highlighted that most Nigerian banks remain highly liquid, with many exceeding the Central Bank of Nigeria’s minimum capital requirements. Regulatory tools such as the Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR) continue to shape liquidity dynamics and lending behavior in the sector.

Despite growing cost pressures, analysts suggest Nigerian banks are well-positioned to maintain lending capacity, thanks to strong capital buffers and regulatory safeguards.

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This announcement, signed by the Company Secretary, Johnson Lebile, was made public on November 15, 2024, through a disclosure on the Nigerian Exchange (NGX) platform.

These appointments coincide with the impending retirement of Oluwole Akinleye, the Bank’s Deputy Managing Director, effective November 30, 2024, after a distinguished tenure spanning a decade.

he statement reads:   

“The Bank hereby announces the retirement of its Deputy Managing Director, Oluwole Akinleye, effective November 30, 2024, after ten (10) years of meritorious service on the Board of the Bank. He will be succeeded by Oluwole Ajimisinmi, the Executive Director in charge of the Lagos Business Directorate of the Bank.”   

Expressing heartfelt appreciation for Mr. Akinleye’s years of dedication, the disclosure further noted:

“The Board of Directors and the Management of the Bank hereby express their deepest gratitude to Mr. Akinleye for his invaluable contributions and unwavering commitment to the Bank’s mission and vision.”  

Oluwole Ajimisinmi: Deputy Managing Director 

Oluwole Ajimisinmi holds a first degree in Law from the University of Jos and a Barrister-at-Law (B.L.) qualification from the Nigerian Law School.

Ajimisinmi’s educational background includes the General Management Program (GMP) at Harvard Business School, where he gained valuable insights into business leadership and management.

He began his journey with Wema Bank Plc in July 2009 as the Company Secretary and Legal Adviser. In recognition of his contributions, he was appointed to the Board as an Executive Director in July 2020.

Oluwole’s extensive experience in banking and corporate governance has been vital to the Bank’s operations, making him well-suited for his appointment as Deputy Managing Director.

Currently, he oversees the Lagos Business Directorate and the Remedial/Recovery Department, roles that highlight his involvement in key operational areas of the Bank. His new position places him at the forefront of Wema Bank’s ongoing efforts to strengthen its services and operations.

Olukayode Bakare: Executive Director 

Olukayode Bakare is a treasury and finance professional with over 32 years of experience spanning the academic and banking sectors. His career has been focused on financial markets, risk management, and treasury operations.

He earned a degree in Economics from Ogun State University, an M.Sc. from the University of Ibadan in 1995, and an ACI Dealing Certificate with distinction from the Financial Markets Association in Paris, France.

Olukayode has attended professional programs such as the Advanced Capital Market Program at the New York Institute of Finance, Digital Transformation at IMD, Lausanne, and a negotiation course at Harvard Business School. He is also an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria.

Beginning his banking career at Ecobank Limited, Olukayode has held various roles in the industry, including serving as the pioneer Treasurer at Diamond du Republic of Benin and as Group Executive of Market Risk Management at Intercontinental Bank (now Access Bank).

Before his appointment as Executive Director, he served as the Divisional Executive overseeing Treasury, Wholesale Funding, and Global Trade Business at Wema Bank. His experience and knowledge of financial operations are expected to support the Bank’s leadership team in achieving its strategic goals.

What the Board stated 

According to the disclosure, the Board expressed confidence in the expertise the new appointees would bring to Wema Bank.

“The Board is confident that with the appointments of Oluwole Ajimisinmi as Deputy Managing Director and Olukayode Bakare as Executive Director, the Bank will continue to build on its achievements and remain focused on delivering exceptional value to its stakeholders,” the statement read. 

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