The Nigeria Deposit Insurance Corporation (NDIC), acting as liquidator of the defunct Gulf Bank Plc, has filed two separate suits against Wema Bank at the Federal High Court in Lagos, seeking the recovery of disputed Banana Island properties valued at about N125.38 billion and an alleged unauthorised payment of N401 million.

According to court documents shared with PREMIUM TIMES on Thursday, the case marked FHC/L/CP/466/26 and another companion suit, were filed under the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act.

The NDIC said the action forms part of efforts to recover assets linked to the defunct bank, whose licence was revoked by the Central Bank of Nigeria (CBN) in January.

At the centre of the dispute are 12 high-value properties in Banana Island, Lagos, which NDIC explained were acquired through companies linked to Gulf Bank before its collapse.

NDIC is asking the court to declare the alleged disposal of the assets illegal and to compel Wema Bank to either return the title documents or pay the current value of the properties.

NDIC also challenged what it described as a disputed payment of N401 million, which it said was collected by Wema Bank from the United Bank for Africa (UBA), acting as its agent bank.

Gulf Bank collapsed after its operating licence was revoked by the Central Bank of Nigeria (CBN) on 16 January 2006, due to insolvency and failure to meet capitalisation requirements.

Allegations of asset stripping

In a witness statement on oath filed on 6 March, a former Deputy Director at NDIC and ex-head of its Criminal Investigation Unit, Joseph Okolonji, said he personally supervised investigations into the transactions.

He told the court that the probe uncovered alleged efforts to strip the defunct bank of six Banana Island properties registered in the name of Euston Wenberg Engineering Company Limited.

According to him, the properties, measuring 13,794.145 square metres, are now valued at about N62.07 billion based on an estimated rate of N4.5 million per square metre.

Mr Okolonji alleged that Wema Bank gave the impression that the assets were sold for N250 million, even though it had no legal interest in the properties.

He also said investigators found no evidence of any valid interbank deposit to justify Wema Bank’s custody of the assets.

NDIC disputes the alleged deposit

NDIC argued that Wema Bank’s claim was based on a purported interbank placement of N771.79 million allegedly linked to Gulf Bank.

However, it said a joint special examination conducted by the CBN and NDIC in 2005 found no record of such a deposit in Gulf Bank’s books.

The report, according to NDIC, showed that Gulf Bank later described the funds as investments tied to Bankers’ Acceptances involving Ibom Power Company and Grix Nigeria Limited—an explanation regulators rejected.

NDIC further said there were no supporting banking documents such as placement memoranda, deposit slips, or account statements to back the transaction.

It also faulted Wema Bank’s reliance on two managers’ cheques issued in 2005 by Access Bank and Intercontinental Bank, totalling N250 million, which it linked to the disputed properties.

The corporation described the figure as unrealistic, arguing that even a single Banana Island property at the time was worth more than N500 million.

Second suit over Bacad-linked properties

In the second suit, NDIC is also challenging ownership of another six Banana Island properties allegedly acquired through Bacad Finance and Investment Limited, later renamed Supra Commercials Limited.

NDIC said Gulf Bank held the majority shares in the company and used it to acquire the properties, which cover about 13,979.974 square metres and are now valued at N62.91 billion.

It alleged that the bank later planned to develop the land into a luxury estate in partnership with Shelter Afrique before its collapse.

The corporation said Wema Bank later took possession of the assets and claimed they were sold for N524 million through managers’ cheques issued between 2006 and 2007.

It also accused the bank of collecting N401 million from UBA in 2009, despite earlier approval of only about N1.63 million as the amount due after liquidation.

NDIC said it had referred aspects of the transactions to the Economic and Financial Crimes Commission (EFCC) for investigation.

It listed several senior lawyers and retired security officials involved in its probe, including Senior Advocate of Nigeria (SAN) D.A. Awosika, Pekun Sowole, retired Deputy Inspector General of Police Abiodun Alabi, and Joseph Okolonji.

The corporation also said it would call estate valuer Adebare Esan as a witness.

Wema Bank’s objection

Wema Bank, through its legal team led by Oladapo Olanipekun, Kehinde Ogunwunmiju, and Tunde Afe-Babalola, who are all SANs, challenged the jurisdiction of the court.

It argued that the dispute did not arise from a banking transaction covered by the Failed Banks Act and insisted that there was no debtor-creditor relationship between the two parties.

The bank also argued that the case is statute-barred, saying the transactions occurred between 2006 and 2007.

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It urged the court to dismiss the suits.

The court adjourned the matter until 25 June for further hearing.

Background

NDIC, as the statutory liquidator of failed banks in Nigeria, is empowered to recover assets and liabilities on behalf of depositors. Its action in this case is anchored on the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, which gives the Federal High Court jurisdiction over such matters.

Gulf Bank Plc was wound up after its licence was revoked by the Central Bank of Nigeria. Since then, NDIC has continued to trace and recover assets allegedly linked to the bank before its collapse.

Nigeria is stepping up efforts to attract investment in key sectors, including power, mining, and infrastructure, as part of broader moves to strengthen the economy and drive sustainable growth.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele disclosed this while speaking on the sidelines of high-level engagements involving President Bola Tinubu at the Africa CEO Forum in Kigali.

He noted that the administration is actively promoting Nigeria as an investment destination.

He said the president has taken a leading role in showcasing the country’s economic potential to global investors.

“One very exciting thing about Mr President is that he is never tired of marketing Nigeria; he is the chief marketer for the country,” the minister said, adding that discussions with investors have focused on unlocking opportunities in power, solid minerals, and private sector development.

Focus on investment opportunities

According to the minister, recent engagements have centred on mobilising investment into strategic sectors, including port development, mining, and private enterprise.

He said Nigeria is working to better communicate its economic strengths, noting that previous efforts to present the country’s opportunities to investors had been inadequate.

“We were not telling our stories as we should before now. By telling a credible story, backed by what has been achieved and the commitment to do more, we can attract the right investments,” he said.

Mr Oyedele also spoke on bilateral engagements with the President of Guinea, describing the relationship between both countries as one of mutual cooperation and shared development goals.

He said President Tinubu commended his Guinean counterpart for maintaining ties with the Economic Community of West African States (ECOWAS) despite pressures to withdraw.

According to him, both countries are exploring collaboration in areas such as iron ore development and broader economic partnerships.

“We are stronger together,” the minister said, noting that both leaders expressed satisfaction with the outcome of their discussions.

Reforms and Africa’s growth

Speaking further, the minister said Nigeria’s ongoing economic reforms are beginning to position the country as an example for other African nations.

He acknowledged that while the reforms have been challenging, they were necessary to put the economy on a sustainable path.

“It wasn’t meant to be easy, but it was necessary. Now we are on that track towards realising the gains,” he said.

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Mr Oyedele added that discussions at the Africa CEO Forum focused on scaling economic growth, accelerating implementation, and strengthening institutions across the continent.

He said African leaders are increasingly shifting from policy discussions to execution, with emphasis on financing development, promoting value addition, and stimulating growth in key sectors such as agriculture, manufacturing, technology, and services.

According to him, the broader goal is to drive inclusive growth and lift more Africans out of poverty.

“The time for rhetoric is over; it is now time for execution,” he said, noting that the current period presents an opportunity not only to serve Nigeria but also contributes to the continent’s development.