Union Bank Sues Jimoh Ibrahim, Others Over N22bn Debt

Union Bank of Nigeria Plc has initiated a legal action before the Federal High Court in Lagos against four firms and their alter ego (promoter), Mr. Jimoh Ibrahim, following the bank‘s claim that the defendants are owing it N22.55bn, Punch reported. The four firms are NICON Investment Limited, Global Fleet Oil and Gas Limited, Nigeria Reinsurance Corporation Plc, NICON Insurance Limited and Union Registrars Limited. The bank also joined the Corporate Affairs Commission as co-defendants to the suit. In an ex-parte application filed by its lawyer, Mr. Kemi Pinheiro (SAN), on November 9, 2010, before Justice Mohammed Idris, the bank claimed that it granted N41.27bn credit facilities to NICON Investment, saying that the tenor of the facility was for a period of 12 months that expired on January 30, 2010. The plaintiff also claimed that the NICON Investment Bank drew down the loan account and fully utilised it for the funding of the operations of the firms within its group including Nigeria Reinsurance and NICON Insurance. The bank, however, claimed that the said N22.55bn debt was outstanding as at April 30, 2010, three months after the credit facilities had expired, alleging that NICON Investment had refused to liquidate the debt in spite of repeated demands. Read more.