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First Bank In Credit Interest Mess, To Pay FAAN N2b
A Lagos Federal High Court has ordered First Bank of Nigeria (FBN) Plc to pay the sum of N2,937,925,388.52 billion, to the Federal Airports Authority of Nigeria (FAAN) being an interest for not disclosing under-payment of credit interest on deposits in 14 different current accounts domiciled with the bank.
Justice Ayokunle Faji, while delivering judgment in suit numbered FHC/L/CS/67/2021 filed by FAAN, also held that First Bank breached its own professional Code of Ethics, by not disclosing all information on goods and services offered, including the interest rate payable by the bank.
Justice Faji made the above orders and declarations in a judgment delivered on October 9, 2023.
The plaintiff (FAAN) had in its originating Summons dated and filed on January 13, 2021, urged the Court to determine whether First Bank is entitled to pay interest on the applicant’s (FAAN) current deposits in lime with the Central Bank of Nigeria Monetary, Credit Foreign Trade and Exchange Policy Guideline of 2004/2005 No 37, Section 3, Sub-Section 3.2.4(a) Interest Policy, which states that “Banks shall continue to pay interest on current account deposits at rates negotiated between them and their customers.
Consequently, the applicant seeks the following reliefs: “An order for the payment of interest on the underpayment of interest on the current account deposits of the applicant at the respondent’s maximum lending rate from 1st September 2018 up to the date of refund.
“An order for the payment of the sum of N2,117,955, 865.01 billion, being interest on underpayment of credit interest on deposits in the applicant’s current account numbers.
“An Order for the payment of the sum of N819, 969, 523.51 million, being credit interest payable on the applicant’s current account deposits in account numbers: A declaration that in pursuance of the Central Bank of Nigeria Monetary, Credit, Foreign Trade and Exchange Policy Guidelines (Monetary Policy Circular), the Applicant is entitled to credit interest on its current account numbers 2004728814, 2004730671, 2004731403, 2004747983, 2012104714, 2012114742, 2013512417, 2020114013, 2020114439, 2020119427, 2020210135, 2020,211974, 2020213521 and 2020268284; deposits with the respondent.
FAAN Federal Airports Authority of Nigeria
“A declaration that in pursuance of the Central Bank of Nigeria Monetary, Credit, Foreign Trade and Exchange Policy Guidelines (Monetary Policy Circular), the applicant is entitled to receive interest on the credit interest the respondent failed to pay on the current account deposits of the applicant.”
But, in response to the Originating Summons, the First Bank in its 32-paragraph counter affidavit, raised two issues for determination to wit: “Whether having regards to the absence of any negotiation and/or agreement between the applicant and the respondent for payment of interest on the applicant’s current account with the respondent, the applicant is entitled to the reliefs sought on the face of the Originating Summons?
“Whether given the Central Bank of Nigeria’s circular “Time Bar for Resolution of Customer’s Complaint” dated 21st August 2015, this suit is statute-barred and constitutes an abuse of court process?”
First Bank stated that by Section 3.2.10 (a) of the Central Bank of Nigeria Monetary, Credit, Foreign Trade and Exchange Policy Guidelines, the words used in the said Section 3.2.10. (a) are clear and plain and should be given literal or ordinary meaning. It follows, therefore, that before interest can be paid on a current account, the interest rate should have been negotiated and agreed upon between the customer and the bank.
The bank further argued that the applicant did not exhibit or refer to any document to show that it approached or negotiated with the respondent on the interest rate to be paid by the respondent for the credit balances in the applicant’s current accounts with the respondent.
It also stated that the applicant has failed to discharge the burden placed on it by placing sufficient materials before the court, therefore the reliefs sought cannot be granted.
Delivering judgement on the issues raised, Justice Faji held that in line with paragraph 2 of the Bank Customer Bill of Rights and Duties and paragraph 3.5(b) of Nigerian Banking Industry (Professional Code of Ethics and Business Conduct), First Bank is duty bound to disclose to the applicant all information on goods and services offered.
“This seems to me to impose a duty on the defendant as part of the ethics of the banking profession. This is where I therefore have reason to hold that the defendant indeed failed to disclose the interest regime to the plaintiff without which the plaintiff would not have been able to know that the interest was to be negotiated and thus make the first move.
“In any event, it is apparent that a banker owes its customer a fiduciary duty and given the rules guiding the ethics of the banking industry, it seems to me that there was a duty on the defendant to inform the plaintiff of its right to negotiate interest. That duty is imposed by the code of ethics aforesaid which is binding on all banks in Nigeria, the defendant inclusive.
“That is in my view the basis for the fiduciary duty owed the plaintiff by the defendant. It is a code of ethics which the defendant ought to have followed and by which it is bound. By not disclosing such information to the plaintiff, the – defendant had breached its professional code of ethics and that in my view was done to gain an unfair advantage over the plaintiff as regards the payment of interest on current accounts. By those rules, the plaintiff is entitled to information upon which to have a basis to negotiate interest which was not availed by the defendant.
“Furthermore and by paragraph 3.5(b) of Nigerian Banking Industry (Professional Code of Ethics and Business Conduct) 2014, banks are under an obligation to inform their customers about the interest rates applicable to/payable on their deposit, fixed, savings and other accounts.
“This shows clearly that the defendant violated its code of ethics. It is also not in dispute that the interest has not been paid. The plaintiff calculated its expert. The defendant contends that the defendant was not involved in the computation of the interest as done by the plaintiff’s consultant.
“The defendant did not however state its calculation or show its own experts’ report. It also did not an expert show that plaintiffs’ calculations are wrong. I believe the contents of the report tendered by plaintiff’s expert who has shown evidence of experience in matters of this nature.
“I hold that the sums therein stated are due to be paid by the defendant and ought to be so paid. I hold that the sums determined as unpaid interest are due to the plaintiff from the defendant and the defendant is therefore ordered to pay the sums claimed.
“This action therefore succeeds. I answer the 4 questions for determination in the affirmative and in favour of the plaintiff. I grant the declarations sought in reliefs 1 and 3 and make the orders sought in reliefs 2, 4 and 5,” the judge held.
A Soldier, Private Utim Terwase, has bagged a monetary reward of N500, 000 for turning down a bribe of the same amount, from a suspected kidnapper,
The reward is in recognition of his honesty and commitment to duty.
The soldier, who reportedly rejected the money offered in exchange for the suspect’s release, has been rewarded with N500,000 by the Commander of Operation Enduring Peace (OPEP), Maj. Gen. Maxwell Dangana.
Terwase was said to have apprehended the suspect following an attempted escape. When the suspect allegedly offered him N500,000 to secure his freedom, the soldier turned down the offer and handed him over to the appropriate authorities.
Impressed by his conduct, Dangana approved a cash reward equivalent to the amount he had refused to collect, describing his action as an example of the integrity, discipline and professionalism expected of military personnel.
The development was disclosed in a statement issued at the weekend by the Media Information Officer of the Joint Task Force, 3 Division, Nigerian Army, Rukuba Barracks, Jos, Capt. Chinonso Polycarp Oteh.
Presenting the reward through the Commander of Sector 6, OPEP, Col. Philimon Malgwi, Dangana said Terwase’s decision to resist the temptation of personal gain reflected the highest standards of military professionalism, loyalty and commitment to duty.
He said the soldier had demonstrated that his responsibility to the nation and the values of the military were more important than personal financial benefits.
According to him, the commendation is intended to encourage other personnel to uphold similar standards of honesty, accountability and selfless service.
Oteh said the reward also sent a strong message that integrity and professionalism remained values worthy of recognition, particularly at a time when corruption continued to undermine public trust.
He described Terwase’s action as proof that integrity was a personal choice, even when faced with temptation.
“A soldier who refused N500,000 in dirty money has earned N500,000 in honour. Indeed, integrity pays,” he said.
A Kano State High Court on Friday sentenced Umar Auwalu and Yakubu Dayyabu, to death by hanging for the gruesome murder of a housewife, Fatima Abubakar, 35, and her six children at Dorayi Chiranchi Quarters, Kano.
The court also sentenced the two convicts to life imprisonment with hard labour each for conspiracy and armed robbery.
The third defendant, Isyaku Yakubu, 21, of Sabon Gida Sharada Quarters, was, however, discharged and acquitted for lack of credible evidence linking him to the murder.
Justice Nasiru Saminu found the two person guilty of the two count charges filed against them, insisting the prosecution proved charges against them beyond reasonable doubt.
Justice Saminu described the killing of the housewife and her six children as a horrific crime that challenged the conscience of the society.
He said the victims were entitled to the protection of their home but were attacked by people who ought to have protected them, particularly as the first defendant, Auwalu, was a nephew of the deceased.
Justice Saminu lamented that seven lives, which could have grown into responsible members of society, had been permanently lost.
“How I wish there is a punishment heavier than this. My emphasis is not to administer vengeance but justice,” the judge said.
On the third defendant, Justice Saminu held that although there were telephone conversations between him and the first and second defendants, the prosecution failed to establish the contents of the conversations or demonstrate that they amounted to conspiracy.
The judge further noted that evidence before the court showed that Isyaku was attending a Qur’anic graduation ceremony at the time of the incident.
Earlier, the prosecution counsel and Attorney-General of Kano State, Abdulkarim Kabiru-Maude, told the court that the defendants committed the offences on January 17, 2026, at about 11:30 a.m. at Dorayi Chiranchi Quarters, Kano.
He said the defendants allegedly conspired, armed themselves with sticks, iron rod and a sharp cutlass before trespassing into the residence of Fatima. According to him, they robbed the deceased of two mobile phones, an Infinix and an Itel, as well as N200,000 in cash.
The Attorney-General told the court that the defendants attacked Fatima with sticks and iron rod, hitting her on the neck before striking her head with a sewing machine, which resulted in her death.
He further alleged that the defendants attacked her six children, identified as Maimuna, 17; Aisha, 16; Bashir, 13; Abubakar, 10; Faruk, seven; and Abdulsalam Haruna, a toddler, with sticks, knives and cutlasses, inflicting injuries on their faces, bodies and heads.
The prosecution said Faruk and Abdulsalam were subsequently thrown into a well within the premises after the attack.
During the trial, Auwalu pleaded guilty to the charges but denied throwing the children into the well, while Dayyabu and Isyaku pleaded not guilty.
The prosecution presented eight witnesses and tendered 30 exhibits, including medical reports from Murtala Muhammad Specialist Hospital, Kano, confessional statements, a bloodstained broken iron rod, a stool, bloodstained trousers, N200,000 cash, two mobile phones and a flash drive containing audio-visual recordings.
The prosecution maintained that the offences contravened Sections 97, 221 and 298(c) of the Penal Code.
President Bola Tinubu says all funds recovered by the Economic and Financial Crimes Commission (EFCC) will be channelled into the Nigerian Education Loan Fund (NELFUND).
The president spoke on Friday at the launch of Arise Palm Resort in Uyo, the Akwa Ibom state capital.
Tinubu said the decision was informed by the need to ease the burden of tuition fees on parents and ensure equal access to education for all Nigerians.
“I feel your pain and share in the difficulty, and that’s why I decided to take away the responsibility of tuition fees from parents and equal opportunities for everyone who wants to read, taking education as the greatest weapon against poverty,” he said.
“And creating opportunities for those who are still coming behind. From today on, as we are fighting corruption, any money recovered by EFCC will be dumped into that education programme. It will be. No one can reverse it.”
On August 19, the president directed the EFCC to channel all recovered funds into NELFUND.
Tunji Alausa, minister of education, announced the development while answering questions from State House correspondents shortly after the weekly federal executive council (FEC) meeting that day.
He said the FEC also approved the allocation of all unclaimed dividends in the Capital Market Trust Fund and funds in the Dormant Account Trust Fund to the student loan scheme to expand its reach and improve its efficiency.
Speaking at a press briefing in Abuja on August 31 to highlight the commission’s achievements under his leadership, Ola Olukoyede, EFCC chairman, said the federal government had allocated N100 billion from funds recovered by the anti-graft agency to the student loan scheme since 2024.
He noted that when “recovered criminal value” helps finance education and household credit, enforcement moves beyond punishment to restoration and productive national use.
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