Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


CBN, Sanusi oppose Intercontinental Bank shareholders’ suit

15 May 2014, 12:04

Abuja – The Central Bank of Nigeria (CBN) and its suspended Governor, Lamido Sanusi, on Wednesday urged an Abuja Federal High Court to dismiss the suit filed by some shareholders of defunct Intercontinental Bank.

The plaintiffs, Abdullahi Sani, Adaeze Onwuegbusi and Chijioke Ezeikpe, urged the court to compel Sanusi to pay N10 billion damages for selling the bank to Access Bank.

The CBN and Securities and Exchange Commission (SEC) were joined as co-defendants.

At the hearing of Sanusi’s preliminary objection his counsel, Sam Kargbo, asked the court to dismiss suit.

Kargbo said that the plaintiffs had no 'locus standi' to institute the suit, having failed to provide evidence of bad faith or fraud in actions he took while in office as CBN governor.

He argued that the suit was an abuse of court process because the merger of Access and Intercontinental Banks was a court ordered merger following shareholders’ approval.

"The said merger and takeover of the defunct Intercontinental Bank by Access Bank was done pursuant to a court ordered merger.

According to him, Sanusi’s role in the merger is restricted to ensuring the regulatory oversight functions of the CBN as he is not involved in the transactions that resulted in the merger.

"With themerger Intercontinental Bank has ceased to exist, therefore it is in the interest of justice that this action be dismissed,’’ Kargbo said.

Similarly the CBN in its preliminary objection filed by its counsel, Kola Awodein, urged the court to strike out the suit because the court lacked the jurisdiction to entertain it.

Awodein, a senior advocate of Nigeria, argued that plaintiffs alleged fraud and did not provide the essential particulars of the fraud.

He submitted that the suit did not disclose any cause of action against Sanusi.

The Counsel to SEC, Zakari Garba, however, told the court that his client was served with the objections on Wednesday and would need time to respond.

The counsel to the plaintiffs, Chris Uche (SAN), had in his originating summons argued that Sanusi undervalued the bank to the detriment of the plaintiffs.

Uche urged the court to declare the takeover of Intercontinental Bank by Access Bank under Sanusi’s instructions and supervision as "unlawful, fraudulent, illegal, null and void".

He also urged the court to order SEC to conduct a detailed investigation into the transaction to protect his clients’ interest and apply appropriate sanctions against parties in the alleged fraud.

Justice Ahmed Mohammed adjourned the case till July 16 to enable SEC who was served in court to respond.

-   NAN

For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...