The order, issued in satisfaction of a massive judgment debt totaling ₦28,824,851,515.57 with 32% compounded interest, has left investors rattled, triggering a wave of anxiety over the bank’s exposure and the potential implications for its financial stability. Industry insiders say the mood around Access Bank headquarters is tense, with stakeholders scrambling for clarity as the details of the long-running legal battle resurface.
The dispute dates back to a 2005 case at the Lagos High Court involving Access Bank, Igala Construction Company Ltd, Mr. C.A. Khouzam, and Reverend (Mrs.) Mary Akinlaja. While Access Bank initially secured judgment in its favour in June 2023, the defendants’ counter-claim was partially upheld. Unhappy with the outcome, the defendants lodged an appeal—but Access Bank did not challenge the portion of the judgment relating to the counterclaims.
In a dramatic twist, the Court of Appeal overturned the high court’s decision and granted the entire counterclaim, including:
- A declaration that Igala Construction was entitled to ₦27,595,152.40, the amount Access Bank had admitted owing as far back as 2004, with compounded interest at 24% per annum.
- A 100% penalty on the admitted sum under the CBN Monetary Policy Circular of 2/1/04, also attracting compounded interest.
- Further compounded interest at 32% per annum from April 1, 2003 until full liquidation.
- ₦300 million in damages over alleged malicious and defamatory publications.
- ₦100 million in legal costs.
With the compounded interest and penalties ballooning over two decades, the judgment sum soared into the tens of billions. A chartered accountant, Motunrayo Popoola Aishat, was engaged to compute the final figure, confirming the staggering amount due as at June 2025.
Invoking Section 287(2) of the Constitution and Section 83 of the Sheriff and Civil Process Act, the judgment creditors subsequently sought and obtained an order attaching Access Bank’s funds with the CBN. The court agreed, stressing that the creditors were entitled to “reap the fruits of their judgment.”
The ruling has sent Access Bank into one of its tensest moments in years, with shareholders reportedly alarmed, analysts increasingly cautious, and market watchers bracing for potential tremors in the banking sector. As the bank navigates the fallout, uncertainty looms; even as legal experts warn that interest will continue accruing at 32% per annum until the monumental debt is completely settled.
For now, all eyes remain on Access Bank’s next move, as panic lingers and investors await reassurance.
