News
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.
An 18-year-old landlord, Similoluwa Akande, has been arraigned before an Akungba-Akoko Magistrate’s Court in Ondo State for allegedly setting fire to a tenant’s belongings valued at N898,000.
Akande was docked on a four-count charge bordering on felony following the incident, which reportedly occurred on August 19, 2026, at Okusa in Akungba-Akoko.
According to the police prosecutor, Olasunkanmi Boboye, the defendant allegedly set ablaze property belonging to his tenant, Aseluwa Ezekiel.
The items destroyed included a bed, bed frame, clothes, carpet, gas cylinder, travelling box, shoes, curtains, rods and cash.
The prosecutor told the court that the burnt items were valued at N898,000, while some official documents were also reportedly destroyed in the fire.
Boboye said the alleged offences contravened Section 249(D) of the Criminal Code, Cap. 37, Vol. 1, Laws of Ondo State of Nigeria, 2006.
The defendant pleaded not guilty to the charges when they were read to him.
He was not represented by legal counsel and informed the court that he had health challenges.
Presiding Magistrate Kolapo Kolawole granted the defendant bail in the sum of N500,000 and adjourned the matter until September 9, 2026, for hearing.
The Minister of Defence, Gen. Christopher Musa (retd.), on Thursday said terrorists are using motorcycles given to Nigerians as palliatives to wreak havoc across the country.
He, however, advised the state governors and lawmakers to stop giving motorcycles as palliatives, arguing that some of the motorcycles eventually end up in the hands of terrorists to facilitate and enhance their nefarious activities.
Musa, who stated this when he appeared on Channels Television’s Politics Today, said efforts are being made to curb terrorism and the operational challenges confronting the country’s security forces.
“We try to appeal to even governors to stop giving motorcycles out as palliatives. Because these motorcycles are the same ones that still end up with these terrorist
“Even if you have to give, don’t give them the big capacity motorcycles; give them the small capacity ones that they won’t be able to use to run around, because that gives them leverage. They can easily enter and then disappear,” he said.
The minister also warned that motorcycles distributed through constituency projects and other palliative programmes by lawmakers could find their way back to bandits and terrorists.
“Those bikes… before you know it, they’re already back to the bandits, and that’s what they’re using. So we must stop that,” he said.
According to him, security agencies had identified illegal markets and motor parks as channels through which terrorists move arms and ammunition into areas where they operate.
“What we realise from experience is they establish illegal markets or illicit motor parks. They go to those motor parks; that’s where they move arms and ammunition into those areas,” he added.
The defence minister also called for greater involvement of local governments in tackling insecurity, saying their proximity to communities gives them an advantage in identifying criminals and preventing crime.
“We must allow our local governments to work. Failure of local government is what is aggravating what we’re dealing with, and if we want a better solution, a quick fix, our local governments must work.
“Crime and development are local. If every local government chairman is dealing with criminals within his locality, it’s easier to manage them than leaving it to the state or to the federal,” he said.
Musa said local government chairmen should hold regular security meetings and report developments in their areas.
He further urged state and local authorities to strengthen monitoring of markets, motor parks and other locations through which drugs, weapons and ammunition could be moved.
“If we’re able to make sure that we man all the markets, all the motor parks, all these areas where drugs, weapons, ammunition move, it will make it difficult for them,” he added.
At least 49 inmates at the Medium Security Correctional Centre in Eket, Akwa Ibom State, have reportedly spent more than a decade awaiting trial, exposing the human cost of prolonged detention and delays in Nigeria’s criminal justice system.
Sources inside the facility disclosed the figure during an inspection of the centre on September 2, 2026.
According to the sources, some of the inmates have spent more than 10 years in custody without their cases being concluded, while others allegedly face difficulties because their case files are unavailable.
Some inmates were reportedly arrested over relatively minor offences, while sources also alleged that others were detained in connection with activism.
The prolonged detention means that people who have not been convicted of the offences for which they were arrested have spent years behind bars.
The situation is particularly troubling because the Nigerian Constitution guarantees the right to a fair hearing within a reasonable time.
The problem is not entirely new at Eket.
In 2023, the Akwa Ibom Chief Judge released six inmates from the facility after finding that they had spent between two and three years in custody without case files to charge them to court.
In March 2026, another eight inmates were released from Eket during a jail-delivery exercise conducted by the state Chief Judge, with the judiciary citing compassionate grounds and want of prosecution.
The Chief Judge has repeatedly raised concerns about prolonged detention.
In March, Justice Ekaete Fabian-Obot said it was unconstitutional to keep suspects in custody for prolonged periods without trial.
The problem is compounded by the centre’s transportation crisis.
Transport
The Officer-in-Charge, Chief Superintendent of Corrections Samuel Bassey, recently said over 40 awaiting-trial inmates were unable to attend court because the centre had no functional vehicles.
The revelation was made on Tuesday, September 1, when a forum of Eket Federal Constituency media professionals (EFCMP), led by its Chairman, Comrade Enobong Nsimah, visited the facility to assess its condition and explore ways of providing pro bono legal assistance to inmates without legal representation.
Akwa
He said some inmates transferred to the facility from Nsit Ubium Local Government Area as far back as 2023 had never appeared in court because of the transportation problem.
“About 46 inmates are unable to appear in court. It is difficult to take the inmates to court without having operational vehicles,” Bassey said.
According to him, more than 40 inmates on the awaiting-trial list have remained at the centre because there is no functional escort van or other vehicle to transport them to court. He also disclosed that the roofs of the sections housing inmates had deteriorated badly and leaked heavily whenever it rained, leaving the inmates soaked.
In 2025, the Chief Judge released inmates across the state’s correctional facilities on grounds including excessive remand periods, lack of diligent prosecution, missing case files, health conditions and compassionate considerations. The judiciary said some inmates had already spent longer in custody than the maximum sentence they might have received if convicted.
-
Health & Wellness1 year agoPresident Tinubu Directs Cut in Dialysis Cost from ₦50,000 to ₦12,000
-
News1 year agoPICTURE: In Lagos Couple Sentenced to 22½ Years for Cannabis Trafficking
-
Business5 months agoDangote Refinery Reduces Petrol Gantry Price To ₦1,200 Per Litre
-
Trending News1 year agoNELFUND Disburses ₦86bn To 449,000 Beneficiaries
-
Business2 years agoHeritage Bank Customers’ Path to Securing ₦5m Insured Funds: A Step-By-Step Guide by NDIC”
-
Business2 years ago
Dangote; We Did Not Fix ₦600/Litre Petrol Price
-
International News5 months agoIndian Police Arrest Nigerian Over ₦290m Drug Haul
-
Business5 months agoAfter Plea Bargain, Court Discharges Stella Oduah of ₦2.5bn Fraud