The ongoing legal battle between the Nigeria Deposit Insurance Corporation (NDIC) and Wema Bank over prime real estate in Banana Island, Lagos, has created apprehension among banking customers across the country. NDIC lodged two new lawsuits at the Federal High Court in Lagos on Thursday, seeking the return of 12 upscale properties estimated at N125.38 billion and challenging an unauthorized payment of N401 million.
These cases, brought under the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act, are part of NDIC’s broader initiative to retrieve assets tied to defunct Gulf Bank, whose license was revoked by the Central Bank of Nigeria earlier this year. According to NDIC, the disputed assets were obtained through companies linked to Gulf Bank prior to its collapse.
In response, Wema Bank issued a statement on Friday asserting that it took control of the properties because the former management of Gulf Bank defaulted on a N1.2 billion debt. The bank emphasized that the companies involved are distinct from Gulf Bank, contradicting NDIC’s assertions. Wema Bank categorically rejected the claims, labeling them as false and intended to mislead the public. However, critics note that the bank did not explicitly deny any connection to the defunct institution or the contested assets.
This dispute has unsettled depositors, raising concerns about the security of their funds and the stability of the banking sector. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, stated that he could not immediately determine the controversy’s impact on customers. The legal tussle continues to unfold, leaving many Nigerians in a state of uncertainty.