A Lagos-based law firm, A.O.S. Practice, has sued the Nigeria Deposit Insurance Corporation (NDIC), liquidator of the defunct Heritage Bank Plc, before the Federal High Court in Lagos over an alleged unpaid legal fee of N2.93 billion.
The firm, through its counsel Chief Ajibola Aribisala, SAN, is seeking interlocutory injunctions restraining the NDIC, its agents, or privies from enforcing its letters of April 4 and 11, 2025, which directed the firm to return all files and documents relating to Heritage Bank’s delinquent loan portfolios.
It also seeks an order barring NDIC from interfering with its custody of those files pending the determination of the suit.
In an affidavit by Akintomide Oyewole, the firm’s litigation manager, A.O.S. Practice stated that it was appointed by Heritage Bank in October 2015 to provide legal services under a formal agreement.
The firm claimed the bank, acting on directives from the Central Bank of Nigeria (CBN), breached and prematurely terminated the contract.
Dissatisfied, the firm filed a suit in 2023, seeking damages of N1.78 billion and $751,820.89.
On February 20, 2024, the Federal High Court ruled in its favour, awarding a total judgment sum of N2.93 billion, including the naira equivalent of the dollar claim.
Despite the judgment, Heritage Bank allegedly failed to pay.
Although it applied for a stay of execution, the court on May 24, 2024, granted a conditional stay, subject to depositing the judgment sum in an interest-bearing account with the Chief Registrar.
The bank reportedly ignored this directive.
Following continued non-compliance, the firm wrote to Heritage Bank on May 31, 2024, demanding compliance but received no response.
Shortly after, on June 3, 2024, the CBN revoked the bank’s licence under Section 12 of BOFIA 2020 and appointed the NDIC as liquidator.
A.O.S. Practice contends that NDIC, as liquidator, inherited all the bank’s rights and liabilities, including the outstanding judgment debt.
However, instead of paying, NDIC allegedly moved to sell Heritage Bank’s assets, advertising them on June 13, 2024, a move the firm described as an attempt to dissipate assets “in defiance of valid court orders.”
The firm accused NDIC of showing “total disregard for the authority of the court and the Nigerian Constitution” and argued that unless restrained, it would be deprived of the fruits of its judgment.
It also undertook to pay damages if the injunctions are later found to have been wrongly granted.
In response, NDIC, through its counsel Chief Emeka Ngige, SAN, filed a preliminary objection and counter-affidavit, arguing that as a statutory liquidator, it does not assume the liabilities of Heritage Bank.
It maintained that its role is limited to recovering and realizing the bank’s assets for the benefit of depositors and verified creditors.
NDIC also noted that both Heritage Bank and the CBN have filed appeals against the February 2024 judgment, contending that execution should be suspended pending the appeal’s outcome.
In a counter-reaction, Oyewole argued that a monetary judgment becomes enforceable immediately upon pronouncement and that Section 287(3) of the 1999 Constitution (as amended) guarantees the enforceability of judgments of the Federal High Court.
