Benue Govt drags NDIC, bank to court over illegal sale of shares

……demands over N8. 6bn as damages 

From Attah Ede, Makurdi 

The Benue Investment and Property Company (BIPC), on Wednesday dragged the Nigeria Deposit Insurance Corporation (NDIC) and All States Trust Bank (in-liquidation) to court over illegal sale of shares belonging to the state and demanded  for a refund of N8.6 billion as claims and general damages.

It would be recalled that the case which was started in 2011, discontinued  due to request by NDIC for out of court settlement and parties went to Arbitration Panel in Abuja. 

However, the panel could not resolve the matter because the NDIC later preferred to continue with the case in court. 

When the case came up for hearing at the Federal High Court sitting in Makurdi, the  Counsel to the plaintiff, Douglas Pepe SAN called one of their chief witness, Mr Paul Agu, a former staff and MD/CEO of the company. 

Agu intimated  the court that the plaintiff applied for a loan facility of N550m from the Federal Mortgage Bank and pledged some of her shares to All States Bank (in -liquidation) for the Bank to guarantee the loan. 

He explained that the money was to come through the liquidated bank adding that the bank was to take her commission and stand as their guarantor before the mortgage bank. 

He said the bank failed to meet her contractual agreements with the plaintiff yet started deducted charges from their account. 

He said the bank also failed to complete the process of opening the letter of credit as required in such case. 

Pepe through his star witness tendered 32 documents to support their position. 

Among the documents tendered were bank statement of the plaintiff in All States Bank (in -liquidation) between August 1, 2002 and December 31, 2003.

He also tendered details of transfers of shares sold by the respondents and closed their case. 

However, the respondents presented by Aondover Iorngee after cross examination requested for date for defence. 

The plaintiff in the suit while given the breakdown of the transactions, said BIPC  applied for a loan facility of N550m from the Federal Mortgage Bank and pledged some of her shares to All States Bank (in -liquidation) for the Bank to guarantee the loan. 

The plaintiff further stated that the respondents who did not fulfilled her part of the contract agreements, charged them arbitrary and sold their shares placed in their custody as collateral. 

BIPC therefore, urged the court to order the respondents to pay N2. 6bn as lost income for her inability to trade with  stocks which were pledged as collateral and has been with them since 2002.

Thy also pay the shares which in 2007 were valued at over 740m at the time of transaction and appreciating to over N5.5bn in 2007.

They should also pay N99.5m being proceeds of the shares illegally sold and N62.8m being value of lost dividends and bonuses over the period. 

The plaintiff therefore, asked the court to order the respondents to pay N2bn as general damages, totally to N8.6 billion.

The presiding judge, Justice Raphael Egbe, however adjourned the case to  May 5, 2025 for opening of defence.