United Bank for Africa wins court ruling in N156bn debt suit against Stallion Group

A Federal High Court in Lagos has upheld the appointment of Romeo Ese as receiver by United Bank for Africa (UBA) in a N156 billion debt recovery suit against Stallion Group and its subsidiaries. Justice Daniel Osiagor affirmed the court’s jurisdiction and the receiver’s right to take possession of mortgaged properties. The court also restrained the defendants from diverting receivables due to them from government agencies.

UBA initiated the suit in October 2023, alleging that Stallion Nigeria Ltd. defaulted on credit facilities granted in 2014. While Stallion Group has disputed the total amount claimed, the court noted that the defendants did not dispute their underlying indebtedness. The bank stated that assets in Kano, Port Harcourt, and Lagos were pledged as security for the loans.

In response to the judgment, Stallion Group has filed a Notice of Appeal and an application for a stay of execution. The group stated it believes there are “strong grounds for appellate review” and intends to pursue its rights through the Court of Appeal. Despite the ongoing legal battle, Stallion Group assured stakeholders that its business operations remain ongoing.