$30m Loan Dispute: Sterling Bank, Customer Petition IGP, Reps
Sterling Bank and one of its customers, Dr Brendan Innocent Usoro, along with his company, Miden Systems Limited,, are in a battle to resolve a $30 million dollar debt that has seen the two petition the Inspector General of Police as well as the House of Representatives.
During a hearing of a petition by Miden Systems Ltd against Sterling Bank, the Central Bank of Nigeria (CBN), and Shell Petroleum before the House of Representatives Committee on Public Petitions on Tuesday, last week, the Nigeria Police Force in a report accused Sterling Bank of making illegal deductions from a customer’s accounts.
Presenting their findings before the committee, representatives of the Inspector General of Police, Chief Superintendents of Police, Kabiru Yahaya and Sunny Amison, accused the bank of improper loan deductions amounting to $28.3 million.
The police report pointed to discrepancies in Sterling Bank’s explanations, describing them as “vague and ambiguous.” Specific instances of large debits, including $2.4 million in September 2016 and $28.3 million in January 2017, were highlighted.
However, Sterling Bank, in a press release and petition to the Inspector General of Police, stated that a Federal High Court ruling from October 2021 had confirmed Miden Systems’ liability and mandated debt repayment terms. The bank alleged that Miden Systems has since engaged in legal manoeuvres and political lobbying to evade compliance.
The bank, in its petition to the IGP, accused Usoro of using the police and the National Assembly to harass its officials in a bid to defy and evade compliance with a binding court-ordered debt settlement.
Sterling Bank’s counsel, Kunle Ogunba (SAN), argued that all deductions were made under a consent judgment, which was signed by representatives of both parties. The bank also accused Usoro and Miden Systems of diverting loan funds, misappropriation of assets, and harassing its executives through political and legal channels.
The committee chairman, Representative Mike Etaba, assured all parties that the findings would be carefully reviewed, with a follow-up hearing scheduled for February 5, 2025.
