For Tony Elumelu’s chaired United Bank for Africa Plc (UBA), it has become a case of “one day, one trouble” as the bank staggers from one issue to another.
Recall that just weeks ago, the Lagos State Police Command arrested four UBA officials for allegedly stealing £138,924 (over ₦270 million) from international airlines’ accounts. According to police investigations, the suspects reportedly conspired to siphon funds from domiciliary accounts into private accounts, subsequently redistributing them to multiple beneficiaries.
Just last week, the bank faced yet another controversy following an alarm raised by one of its customers, Ibhahe Hope Ehieribo. Ehieribo, a U.S.-based Nigerian, accused UBA of unlawfully clearing ₦106,309,534.87 from his savings account. The withdrawal, he said, was allegedly based on false claims that he had died while living abroad. Following public outcry and pressure on social media, UBA returned the full amount to Ehieribo.
This latest judgment adds to the mounting legal troubles surrounding UBA .
Delivering judgment on April 28, 2025, Justice Dehinde Dipeolu ruled that UBA must pay the specified sums, along with pre-judgment interest at 20% and post-judgment interest at 10% per annum, to the court-appointed Liquidator of the company.
The court also mandated that UBA produce certified statements of the company’s accounts spanning from November 2, 2021 — the date of the company’s winding-up commencement — to the date of the judgment.
The ruling followed an application filed by the Liquidator in the winding-up suit marked FHC/L/CP/1577/2021: Nduka Nwabuwa & 3 Ors v. Addy Finance & Investments Ltd. The Liquidator’s legal counsel, T.Y. Salman, accused UBA of unlawfully withholding the company’s funds despite existing court orders restraining withdrawals since March 30, 2022, and the formal appointment of a provisional liquidator on July 5, 2022.
According to court records, UBA’s own affidavit in previous proceedings confirmed that the accounts of Addy Finance with the bank held balances of N30,455,571.65, N8,652,845.56, and $53,078.04 at various dates. Yet, UBA allegedly failed to remit the funds or provide full disclosure to the Liquidator.
Justice Dipeolu sharply criticized UBA for failing to comply with its fiduciary obligations and attempting to rely on garnishee and interim forfeiture orders obtained after the winding-up proceedings had commenced—orders which the court declared null and void under Section 577 of the Companies and Allied Matters Act (CAMA) 2020.
The court also flagged multiple instances of dubious conduct by the bank: “Filing a sworn affidavit in November 2023 denying the existence of the funds, while simultaneously disbursing over N27 million to select creditors without informing the court or the Liquidator;
“Making secret settlements, including payments of N16 million to UBA staff, without involving the company, the Liquidator, or the Economic and Financial Crimes Commission, EFCC“;
“Failing to serve key documents (notably Exhibit ATO 6) on the Liquidator until after these transactions had been completed.”
The judge held that as custodian of the accounts, UBA bore the burden of proving the non-existence of the balances.
The bank’s failure to do so, combined with its actions during the liquidation process, amounted to professional misconduct.
The court also criticized the conduct of UBA’s legal representatives during the case.
While granting most of the Liquidator’s reliefs, the court declined one request, citing vagueness in its formulation.
As UBA continues to reel from controversy to controversy, industry watchers say the court’s latest ruling raises renewed concerns over corporate governance, transparency, and internal controls at one of Nigeria’s largest financial institutions.
