A Federal High Court in Lagos has ordered the attachment of a staggering ₦28.8 billion from Access Bank’s accounts with the Central Bank of Nigeria (CBN) to satisfy a judgment debt.
The court’s ruling is in relation to a case filed in 2005 between Access Bank Plc and Igala Construction Company Ltd, Mr. C.A. Khouzam, and Reverend (Mrs) Mary Akinlaja.
According to court documents, Access Bank had initially filed a claim against the defendants, who in turn filed a defense and counter-claim.
The case was later prosecuted to conclusion, with the presiding judge of the Lagos High Court granting the claims of the bank and partially granting the counter-claim of the defendants.
However, the defendants appealed the judgment, and on June 10, 2023, the Court of Appeal set aside the judgment entered in favor of Access Bank and affirmed the counter-claim.
The Court of Appeal ordered Access Bank to pay the defendants a sum of N27,595,152.40, along with compounded interest at a rate of 24% per annum, commencing from April 1, 2003, until total liquidation.
The judgment debt now stands at ₦28,824,851,515.57, and the court has ordered the attachment of Access Bank’s funds in the custody of the CBN to satisfy the debt. Furthermore, the court also awarded compounded interest at a rate of 32% per annum, commencing from October 3, 2025, until total liquidation of the judgment sum.
The Court of Appeal’s judgment, delivered on June 10, 2023, included the following terms:
Firstly, the court declared that the 1st defendant/counter-claimant is entitled to the sum of N27,595,152.40, admitted by Access Bank in its letter dated January 20, 2004, as being due and payable by the bank to the 1st defendant.
Next, the court ordered Access Bank to pay the said sum of N27,595,152.40, along with compounded interest at a rate of 24% per annum, commencing from April 1, 2003, until total liquidation.
Additionally, the court imposed a penalty of 100% of the said amount, pursuant to Section 3.2.4(g) of the Central Bank of Nigeria Monetary Policy Circular 37 of 2/1/04.
Moreover, the court awarded compound interest on the said amounts at a rate of 32% per annum, commencing from April 1, 2003, until total liquidation.
Furthermore, the court awarded damages of N300 million for deliberate, malicious, and libelous publication made by Access Bank.
Lastly, the court ordered Access Bank to pay costs of N100 million, being the solicitors’ fee in defending the claim and prosecuting the counter-claim.
The court’s ruling has significant implications for Access Bank, which may face liquidity challenges as a result of the attachment of its funds.
Consequently, the bank’s management is yet to make an official statement on the matter.
Meanwhile, the judgment creditors, Igala Construction Company Ltd and two others, have urged the court to issue an order attaching the funds of Access Bank in the custody of the CBN to satisfy the judgment debt.
Ultimately, the court’s decision has been welcomed by the judgment creditors, who have expressed their desire to reap the fruits of their judgment.
