Firm drags Nova Bank to court over $2 million disputed debt

By Akin Kuponiyi

A plastic manufacturing company, Sunrise Products Limited, has instituted a suit against Nova Commercial Bank Limited before a Federal High Court in Lagos, alleging inflation of its indebtedness through illegal charges and enforcement of non-existent liabilities running into millions of dollars and hundreds of millions of naira.

Also joined in the suit is Emerging Africa Trustees Limited as co-defendant. The plaintiff is seeking N10 million in damages and N5 million as legal costs.

In its statement of claim filed by its counsel, Barrister Sivbone Edu, Sunrise Products alleged that the bank manipulated its accounts and issued conflicting debt figures in a bid to wrongfully extract funds.

The dispute stems from an Import Finance Facility of $1.5 million granted to the company in February 2020 to finance the importation of raw materials, including polyethylene and polypropylene.

The firm maintained that it met all obligations under the facility by providing the required naira cash cover for Form M transactions and Letters of Credit, with payments made as due through its account with the bank.

Sunrise Products stated that despite fulfilling its obligations, the bank began making what it described as “spurious and ever-changing claims” of indebtedness not supported by transaction records.

According to the company, its account showed a debit turnover of over N4.48 billion and a credit turnover of about N4.49 billion, leaving a positive balance of approximately N14 million as of May 2022.

The plaintiff further alleged that Nova Commercial Bank’s claims fluctuated significantly, with an alleged debt of $1.89 million in April 2022 reduced to $420,213.78 in November 2022 and further to $225,781 in January 2023.

However, the bank later claimed in August 2023 that the company owed over $2 million, alongside additional naira liabilities, and by March 2024 demanded $2.16 million while threatening to debit its accounts or convert naira funds at prevailing exchange rates.

Describing the situation as a pattern of inconsistency and financial misrepresentation, the company engaged Bizancom Support Services to conduct a forensic review of its transactions.

The review reportedly uncovered discrepancies, including unexplained debits and undocumented charges, while requests for clarification were allegedly ignored by the bank.

The matter was later referred to the Sub-Committee on Ethics and Professionalism of the Bankers’ Committee, which, according to the plaintiff, found merit in the complaint and concluded that the bank imposed excess and unlawful charges.

The plaintiff stated that the committee determined that excess charges of N1,969,941.37 were levied, with interest bringing the total to N3,879,387.75, which the bank reportedly agreed to and paid.

Despite this, Sunrise Products alleged that Nova Commercial Bank continued enforcement actions, including attempts to rely on a debenture agreement to assert control over its assets, without establishing a clear debt position.

The company is seeking a court declaration that, given the inconsistencies and findings of illegal charges, the debit position contained in the bank’s letter dated November 24, 2025 is contestable.

It is also asking the court to restrain the defendants from enforcing default provisions in the debenture trust deed executed in May 2020.