Wema Bank has rejected NDIC’s allegations over Banana Island properties linked to defunct Gulf Bank, insisting the transactions were lawful and backed by EFCC findings and NDIC acknowledgements
Wema Bank Denies NDIC Allegations Over Banana Island Properties Tied to Gulf Bank
Wema Bank Plc has strongly denied allegations published by the Nigeria Deposit Insurance Corporation (NDIC) concerning the sale of Banana Island properties allegedly linked to the defunct Gulf Bank Plc, describing the claims as “false, misleading, and wholly unsubstantiated.”
In a detailed statement issued by the bank, Wema Bank said the reports were malicious attempts to distort facts surrounding a long-standing debt recovery process tied to Gulf Bank’s liquidation. The lender insisted that all actions taken in relation to the properties were lawful, transparent, and supported by regulatory and investigative findings.
According to the bank, the dispute dates back to 2002 when Wema Bank made an inter-bank placement of ₦4.6 billion with Gulf Bank Plc. By August 2004, the exposure had reduced to about ₦1.2 billion before the outstanding balance became delinquent.
Wema Bank explained that its recovery efforts eventually aligned with investigations by the Economic and Financial Crimes Commission (EFCC), which reportedly uncovered that the funds had been diverted into the acquisition of high-value properties in Banana Island, Lagos.
The bank stated that the properties were traced to two separate entities — Bacad Finance & Investment Company Ltd, now known as Supra Commercial Trust Limited, and Euston Wenberg Eng Ltd — stressing that neither company was the same entity as Gulf Bank Plc.
“It is important to note that neither Bacad Finance & Investment Company Ltd (nor its successor, Supra Commercial Trust Limited) nor Euston Wenberg Eng Ltd is one and the same as Gulf Bank Plc. They are separate and distinct entities with no identity or equivalence to Gulf Bank,” the bank said.
Wema Bank further disclosed that following the EFCC investigation and asset-tracing exercise, the two companies voluntarily relinquished their interests in the Banana Island properties as part of arrangements to settle Gulf Bank’s indebtedness.
The lender also revealed that the NDIC had formally acknowledged the debt owed to Wema Bank in two separate letters dated September 26, 2007, and June 10, 2009. According to the bank, the letters were addressed respectively to the Federal Land Registry and Wema Bank Plc, confirming Gulf Bank’s liabilities and Wema Bank’s interests over the properties.
“These letters constitute clear and formal recognition by the NDIC of the validity of Wema Bank’s claim against the defunct Gulf Bank and its interest over the property in question,” the statement noted.
Wema Bank added that the NDIC later paid the shortfall balance due to the bank after the sale of the properties, arguing that the development further demonstrated NDIC’s awareness and participation in the transaction.
“NDIC is precluded from and cannot in good faith contest the relinquishment of those interests or the appropriateness of Wema Bank’s recovery efforts,” the bank stated.
Although the NDIC has reportedly instituted two separate suits against Wema Bank at the Federal High Court in Lagos in its role as liquidator of Gulf Bank Plc, Wema Bank maintained that the ongoing litigation does not change the material facts surrounding the matter.
The bank said it would refrain from commenting extensively on issues currently before the court because the matters are sub judice but confirmed it is taking all legal steps necessary to defend its interests.
Wema Bank reaffirmed its commitment to corporate governance, regulatory compliance, and ethical banking practices, assuring shareholders, customers, and stakeholders that it would continue to operate responsibly and transparently.
“The Bank will continue to exert its rights and will not succumb to the shenanigans of unscrupulous individuals who want to reap where they did not sow,” the statement added.
Wema Bank Plc, listed on the Nigerian Exchange as WEMABANK, is widely recognised as the pioneer of Africa’s first fully digital bank, ALAT, and remains one of Nigeria’s longest-standing financial institutions with over 150 branches and service stations nationwide.
