BIPC Sues NDIC for N8.6bn Over Alleged Illegal Share Sale

By Raymond Enoch

Legal Battle Over Share Sale Resurfaces

The Benue Investment and Property Company (BIPC) has filed a lawsuit against the Nigeria Deposit Insurance Corporation (NDIC) and All States Trust Bank (in-liquidation), alleging the unlawful sale of its shares. The company is demanding over N8.6 billion in damages.

The case, which has been dragging on since 2011, hit a roadblock after NDIC opted for an out-of-court settlement through an Arbitration Panel in Abuja. However, when negotiations failed, the matter was returned to the Federal High Court in Makurdi.

During the latest hearing, BIPC’s lead counsel, Douglas Pepe (SAN), called Mr. Paul Agu, a former Managing Director of the company, as a key witness. Agu testified that BIPC obtained a N550 million loan from the Federal Mortgage Bank, using shares as collateral with All States Trust Bank. However, the bank allegedly failed to fulfill contractual obligations, deducted fees unfairly, and eventually sold BIPC’s shares without due process.

Pepe submitted 32 critical documents, including bank statements and share transfer records, to the court.

The defense counsel, Aondover Iorngee, representing NDIC and All States Trust Bank (in-liquidation), requested an adjournment to prepare their case.

BIPC is seeking N2.6 billion in lost income, N5.5 billion for the shares’ appreciated value, N99.5 million in proceeds from the alleged illegal sale, and N2 billion in general damages.

Court Adjourns to May 5
Justice Rafael Egbe, presiding over the case, has adjourned the hearing to May 5th, when the defense is expected to present its arguments.

With billions at stake, the legal battle is set to escalate, drawing significant attention from the financial and legal communities.