N29bn judgment debt rattles Access Bank, stakeholders fear downturn
Crisis of confidence is currently rocking Access Bank over a judgment of the Federal High Court, Lagos, which ordered the attachment of N29 billion from the bank’s funds domiciled with the Central Bank of Nigeria – setting off sent shockwave and raised blood pressure of stakeholders to a boiling point.
Sources said panic mood has been let loose within the structures of the bank.
Those in know said apprehension has since gripped Access Bank’s top management as the institution scrambles to halt the enforcement of the attachment order. In a desperate bid to contain the fallout and reassure jittery shareholders, the bank has reportedly launched a counter suit, hoping to overturn the judgment and salvage its public image.
Insiders say the tension is unmistakable; Access Bank is racing against time to stop the Central Bank of Nigeria from executing the order that freezes nearly N29 billion of its funds.
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, said one source.
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 the bank’s next move, as uncertainty lingers and investors await reassurance.
This development stems from a judgment of the Court of Appeal in CA/LAG/CV/1215/2023: Igala Construction Co. Ltd & 2 Ors v. Access Bank Plc.
The order, issued in satisfaction of a massive judgment debt totaling N28,824,851,515.57 with 32% compounded interest, is said to have investors rattled, triggering a wave of anxiety over the bank’s exposure and the potential implications for its financial stability.
Stakeholders are said to be scrambling for clarity as the details of the long-running legal battle resurfaced.
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 lower court decision and granted the entire counterclaim, including: “A declaration that Igala Construction was entitled to N27,595,152.40, 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.
“N300 million in damages over alleged malicious and defamatory publications.”
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.”
Efforts to get a reaction from the bank’s spokesman, Kunle Adenirokun, was unsuccessful. Messages sent to his mobile WhatsApp number were not replied as the time of filing this report
