Nigerians in limbo as NDIC, Wema Bank fight over Banana Island properties

The Nigeria Deposit Insurance Corporation, NDIC, and Nigerian commercial bank, Wema Bank, have been enmeshed in a fresh controversy, leaving Nigerians in limbo.

The nation’s financial institution insurer filed two fresh suits, marked FHC/L/CP/466/26, on Thursday at the Federal High Court in Lagos against Wema Bank, seeking the recovery of disputed Banana Island properties valued at about N125.38 billion and an alleged unauthorised payment of N401 million.

Accordingly, the suits were filed under the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act.

NDIC said its action forms part of efforts to recover assets linked to the defunct bank whose licence was revoked by the Central Bank of Nigeria, CBN, in January.

NDIC blamed Wema Bank, stating that the assets, which comprise 12 high-value properties in Banana Island, Lagos, were acquired through companies linked to Gulf Bank before its collapse.

The case has placed Wema Bank in a difficult situation, with the possibility of impacting customers’ trust and deposits.

Reacting in a statement on Friday, Wema Bank clarified that the properties in question were taken over due to delinquent indebtedness of N1.2 billion under the defunct management of Gulf Bank.

The bank also stated that the companies involved are not the same as Gulf Bank, contrary to NDIC’s claims.

“We unequivocally reject these claims, which are inaccurate, malicious, and clearly intended to distort the true position,” Wema Bank stated.

However, the bank did not deny links to the properties and the defunct Gulf Bank.

The situation has sent mixed signals to bank customers in Nigeria.

Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, said he could not ascertain the impact of the controversy on its members as of the time of filing this report.

Nigerians in limbo as NDIC, Wema Bank fight over Banana Island properties