Manny Ita –
Wema Bank has responded to allegations surrounding the sale of properties on Banana Island that were linked to the defunct Gulf Bank, insisting that the transactions were legal and carried out as part of efforts to recover outstanding debts.
According to the bank, the dispute traces back to an interbank placement of about ₦4.6 billion made in 2002 to Gulf Bank, which was later reduced to around ₦1.2 billion before the obligation became unpaid. Wema Bank says it then began recovery actions to protect depositor and shareholder funds, especially after Gulf Bank’s collapse and liquidation.
The bank further explained that investigations by the Economic and Financial Crimes Commission (EFCC) reportedly traced diverted funds to the purchase of Banana Island properties through two companies that were later identified as separate legal entities from Gulf Bank. Wema Bank maintains that these companies voluntarily surrendered their interest in the properties as part of debt recovery.
The clarification comes amid reports that the Nigeria Deposit Insurance Corporation (NDIC) has filed lawsuits against Wema Bank, seeking recovery of the disputed assets and questioning certain transactions, including an alleged ₦401 million payment.
Wema Bank argues that NDIC had previously acknowledged aspects of the debt recovery process in earlier correspondence and that proceeds from the property transactions were used to offset outstanding obligations. The bank also insists that Gulf Bank’s liquidation process placed NDIC in the role of statutory liquidator, but says this does not invalidate its claims over the recovered assets.
The matter is now before the Federal High Court in Lagos, where both parties are presenting conflicting interpretations of the recovery process and ownership of the disputed properties.
Gulf Bank was earlier shut down after its license was revoked by the Central Bank of Nigeria due to insolvency and failure to meet capital requirements, leading to its liquidation under NDIC supervision.
