NDIC files suit to recover $29.2m, N5.3bn owed defunct bank

The Nigeria Deposit Insurance Corporation, NDIC, has filed two separate suits before the Federal High Court in Abuja, seeking to recover the sums of $29.2million and N5.3billion, owed the defunct Gulf Bank Plc.

The Corporation, in its debt recovery suits: FHC/ABJ/CS/296/16 and FHC/ABJ/CS/437/15, told the court that two firms—Ibom Power Company Limited and Lyk Engineering Limited—were indebted to the defunct bank to the tune of $29.2m and N5,382,722,528.82, respectively, as of January16, 2006, when it shut down.

It said the debts were loans that Gulf Bank granted to finance a power project.
According to NDIC, part of the loan was used to finance the importation of gas turbines for the Akwa Ibom Power Company Limited.
The debts were said to have been secured by the execution of a legal mortgage over the land where the power project was to be located, as well as, an All Asset Debenture over the assets of Ibom Power Company.
The legal actions were instituted on behalf of the NDIC by the appointed liquidator, Mrs. Iquo Minimah.
Cited as defendants in the suits are the Akwa Ibom Investment and Industrial Promotion Council, the Akwa Ibom State Government and the Attorney General of Akwa Ibom State.