• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

FCMB has just lost a major ₦2.5bn case after a protracted trial

Emmanuel Abara Benson by Emmanuel Abara Benson
May 23, 2018
in Business News, Company News
Adamu Nuru, FCMB Managing Director

Adamu Nuru, FCMB Managing Director

Share on FacebookShare on TwitterShare on Linkedin

The protracted legal dispute between First City Monument Bank Plc and Valueline Securities and Investment Limited (a stockbroking firm) has finally been resolved by the Investment and Securities Tribunal.

The legal dispute, which was centered around the repayment of a controversial ₦2.5 billion shares purchase fund that was misappropriated by the now-defunct Finbank Plc, had been on since 2008. First City Monument Bank Plc had merged with Finbank in 2012.

Valueline Securities and Investment Limited had instituted the suit ten years ago, while implicating City Monument Bank Plc, the Securities and Exchange Commission, and the Central Bank of Nigeria.

RelatedStories

CBN, MPC

CBN opens application for Knowledge Acceleration Programme to shape future research priorities 

July 13, 2025
CBN, forex

June 2025 PMI: CBN warns of inflation as input costs outpace output prices

July 8, 2025

Meanwhile, delivering the judgment in Abuja recently, the Investment and Securities Tribunal ruled that FCMB should pay the claimant some ₦988,533,205.86 in addition to accrued interest calculated at 18%, being repayment of an outstanding loan.

First City Monument Bank was also mandated to pay a penalty charge of about ₦500.000 which will go to the claimant as the cost of legal action. FCMB will also pay a 10% 10% interest on the judgment debt from the date of the judgment until final defrayment.

Background to the case

Valueline Securities and Investment Limited in 2008 paid the sum of ₦2.5 billion for the purchase of shares during a Finbank public offer. Unfortunately, the stockbroking firm was neither allotted the shares nor refunded the ₦2.5 billion; in line with capital market regulations.

Consequently, the claimant petitioned the Securities and Exchange Commission who investigated the matter and found the bank guilty, thereby ordering it to refund the money with 18% interest per annum; starting from the date of public offer till liquidation of same.

Following the bank’s failure to adhere to the ruling by SEC, the Central Bank of Nigeria had to intervene. This also happened to be the same time Finbank Plc and First City Monument Bank were finalising their agreement. FCMB agreed to offset the debt, provided that SEC would allow the merger to take place.

However, when the bank failed to pay, the SEC sought the intervention of the CBN; coincidentally, at the time when the FCMB and Finbank were planning a merger. An All Parties Meeting (APM) was convened where the FCMB undertook to repay the indebtedness of Finbank and for its account with the CBN to be debited at source by CBN provided the merger of the two banks was approved by SEC to succeed.

The bank later claimed that it had paid the sum of ₦4.6 billion to the firm, said sum which included the initial ₦2.5 billion plus the accrued interest of ₦2.1 billion. The claimant, however, faulted the claim, saying that FCMB never really repaid the full debt.

In light of these developments, the Central Bank of Nigeria and the Securities and Exchange Commission formed a joint investigative team which “changed the original SEC computation formula for the repayment following a petition by FCMB Plc and without informing or involving the claimant.”

Meanwhile, in the latest ruling, the tribunal had tried to determine the following-

  • Whether FCMB has really complied with the directive to pay the debt
  • Whether FCMB is still indebted to the claimant and
  • Whether the claimant is entitled to the reliefs it sought in its originating application.

The tribunal, therefore, ruled in favour of the stockbroking firm, while nullifying CBN and SEC’s decision to change of the computation formulae.

 


Follow us for Breaking News and Market Intelligence.
Tags: CBNFCMB Group PlcSecurities and Exchange CommissionValueline Securities and Investment Limited
Emmanuel Abara Benson

Emmanuel Abara Benson

Emmanuel Abara Benson is an experienced business reporter and editor. He currently edits articles at Nairametrics. Reach him via email on Emmanuel.abara@nairametrics.com and follow him on Twitter @Mr_Abara for his personal opinions.

Related Posts

CBN, MPC
Financial Services

CBN opens application for Knowledge Acceleration Programme to shape future research priorities 

July 13, 2025
CBN, forex
Economy

June 2025 PMI: CBN warns of inflation as input costs outpace output prices

July 8, 2025
CBN, forex
Financial Services

CBN clarifies NRBVN charges, says BVN enrolment remains free for Nigerians in Nigeria 

July 7, 2025
CBN, forex
Breaking News

Court upholds CBN-backed NIBSS Authority to manage BVN Database nationwide 

July 4, 2025
CBN, forex
Financial Services

Credit to Private sector slips marginally to N77.83 trillion in May 2025 despite surging money supply 

July 3, 2025
SEC warns Nigerians against investing in Risevest and Stecs  
Legal & Regulations

SEC warns Nigerians against Value Growth Platform, flags it as potential Ponzi scheme 

June 27, 2025
Next Post
CBN Gov Godiwn Emefiele

CBN wades into the bank vs Fintech debate

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • 15 things you don’t need to start a business in Nigeria 
  • NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement
  • Key policies that shaped Nigeria’s tech industry under Buhari’s 8-year rule 

Follow us on social media:

Recent News

Small Business

15 things you don’t need to start a business in Nigeria 

July 15, 2025
NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement

NNPC, Akwa Ibom, GACN sign $3.5 billion gas agreement

July 15, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics