Union Bank of Nigeria (UBN PLC) is under intense scrutiny over a 25-year-old legal dispute involving the fraudulent sale of a Nigerian family’s property. Despite losing a Federal High Court case in Lagos to the estate of its late customer, Adedoyin Ogunde, the bank continues to engage in protracted legal manoeuvres in what many believe is an attempt to cover up its actions.
On May 31, 2024, Nigerians were shocked to learn about the ordeal faced by the Ogunde family. The case, dating back to 1999, centres on the sale of their late patriarch’s property located at No. 6 Moore Road, Ikoyi, Lagos (now Gbolahan Mudasairu Road). The court ruled that Union Bank had fraudulently sold the property at a grossly undervalued price of ₦60 million, awarding ₦112 million in damages to the family. However, the family continues to fight for justice, cross-appealing Union Bank’s ongoing appeal.
Court records reveal that Union Bank’s legal defence hinges on the statute of limitations, claiming the family waited too long to file a case. However, the court dismissed this argument, finding that the sale of the four-building property was not only improper but also illegal. Despite recovering its debt after selling just one of the buildings, Plot 6A, for ₦30 million, the bank went on to sell the other plots under dubious circumstances.
The sale of Plot 6B to Pastor Titus Osundina, a former Union Bank employee, and the sales of Plots 6C and 6D to associates connected to the bank’s selling agent, have raised further questions of collusion and corruption. The family has long accused the bank of acting in bad faith, particularly by refusing to provide bank statements since 1999 and obstructing court orders to release crucial documents.
The judge condemned Union Bank for its reckless and fraudulent actions, stating that the sale of the remaining plots was unnecessary after the initial debt had been cleared. The bank, which was required to act in good faith as a fiduciary trustee, instead exploited its customer’s death to seize a valuable property.
Union Bank has since appealed the decision, prolonging a legal battle that has already drained the Ogunde family’s finances. Legal experts and financial analysts alike have expressed disappointment in Union Bank’s approach, calling it a blatant abuse of power and corporate malpractice.
The case has also sparked wider concerns about the integrity of Nigerian financial institutions. Alexis Eniola, a business analyst, remarked, “Banks should protect customer assets, not seize them for personal gain. This case is an example of unchecked corporate fraud.”
As Union Bank moves forward with its appeal, many are watching closely to see how this decades-long dispute will be resolved, with the family still fighting for justice 25 years after their property was fraudulently taken.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.