*Court Battle Rekindled After Failed Arbitration
By Queen Kunde
The Benue Investment and Property Company (BIPC) has taken legal action against the Nigeria Deposit Insurance Corporation (NDIC) and All States Trust Bank (in-liquidation), accusing them of unlawfully selling its shares and demanding over N8.6 billion in damages.
The case, which has been ongoing since 2011, stalled after NDIC sought an out-of-court settlement through an Arbitration Panel in Abuja. However, the talks collapsed, forcing the matter back to the Federal High Court in Makurdi.
During the latest hearing, BIPC’s lead counsel, Douglas Pepe (SAN), presented Mr. Paul Agu, a former Managing Director of the company, as a key witness. Agu detailed how BIPC secured a N550 million loan from the Federal Mortgage Bank, pledging shares to All States Bank as collateral. Despite failing to meet contractual obligations, the bank allegedly deducted fees, failed to open a letter of credit, and ultimately sold off BIPC’s shares illegally.
Pepe backed BIPC’s claims with 32 crucial documents, including bank statements and share transfer records. In response, the defense, led by Aondover Iorngee, requested a new date to present their case.
BIPC is demanding compensation, including N2.6 billion in lost income, N5.5 billion for the shares’ appreciated value, N99.5 million in proceeds from the illegal sale, and N2 billion in general damages.
Presiding Judge Justice Rafael Egbe has adjourned the case to May 5th for the defense’s response. The high-stakes legal battle is set to intensify, with billions on the line.
