$17m Loan Dispute: Court Reaffirms Order Halting Criminal Allegations Against Sterling Bank Executives

Wale Igbintade

Justice Daniel Osiagor of the Federal High Court in Lagos has reaffirmed an earlier order restraining parties from taking further steps in respect of criminal allegations made against Sterling Bank Limited and some of its top executives, pending the determination of a substantive suit before the court.

The judge reiterated the order yesterday, when the matter, Suit No. FHC/L/CS/158/2025, between Sterling Bank Limited and five others as plaintiffs, and the House of Representatives and four others as defendants, came up at the Lagos Judicial Division.

At the hearing, Femi Falana, SAN, and Funmi Falana, SAN appeared for Sterling Bank and the other plaintiffs, L.M. Alozie, SAN, represented the 4th defendant, while Sylvester Azubuike appeared for the 5th defendant.

Other defendants were represented by their respective counsel.

Justice Osiagor restated the subsisting order directing that no further steps should be taken in furtherance of the criminal allegations against the bank and its officials until the substantive suit challenging the actions of the defendants is determined.

The court subsequently adjourned the matter to May 11, 2026, for further proceedings.

The suit was filed by Sterling Bank Limited, Sterling Holding Company, and some executives of the bank to challenge the powers of the House of Representatives Committee on Public Petitions to investigate issues arising from a banker–customer dispute between the bank and Miden Systems Limited and its principal, Dr. Innocent Brendan Usoro.

According to the plaintiffs, the dispute arose from a loan facility of about $17,079,000 granted to Miden Systems Limited in 2009.

The bank stated the facility was later restructured after the borrowers allegedly failed to meet their repayment obligations.

Following the alleged default, Sterling Bank commenced recovery proceedings which culminated in a consent judgment of the Federal High Court, where the borrowers reportedly admitted liability in the sum of about $31.3 million.

Despite the subsisting judgment and other pending court proceedings relating to the debt, the plaintiffs alleged that petitions were later filed before the House of Representatives Committee on Public Petitions.

This, they said, prompted the committee to initiate investigations and led to criminal complaints being referred to law enforcement authorities against the bank and some of its officials.

In the suit before the Federal High Court, the plaintiffs are asking the court to determine whether the National Assembly has the constitutional power to investigate or summon private individuals and corporate bodies in matters not connected with its law-making functions, and whether such investigations can lawfully proceed while the issues in dispute are already the subject of pending court proceedings.

During yesterday’s proceedings, counsel for the plaintiffs drew the court’s attention to its earlier order made on July 18, 2025, directing that no further steps should be taken in relation to the criminal allegations against the bank and its executives pending the determination of the suit.

The court was also informed that, despite the subsisting order, certain criminal complaints and related actions had allegedly been initiated in connection with the dispute.

After hearing counsel, Justice Osiagor reaffirmed the directive restraining all parties from taking further steps in respect of the criminal allegations against Sterling Bank and its officials pending the determination of the substantive issues before the court.