Litigation Claims against Access Holdings Plc Hit N11.3Trn
Access Holdings Plc. reported quite a huge litigation portfolio of N11.3 trillion—probably the highest—at the end of the third quarter of the financial year 2024.
In a detailed review of the group financial reports, the Nigerian top lender increased its litigation claims provision by 112% with 9-month to N8.118 billion from N3.838 billion in Dec 2023. “The Group is a party to numerous legal actions arising out of its normal business operations,” Access Holdings Plc. said in its latest unaudited financial statement.
The Directors believe that, based on currently available information and advice of counsel, none of the outcomes that result from such proceedings will have a material adverse effect on the financial position of the Group, either individually or in the aggregate.
The book revealed that a N8.12 billion provision was made as of September 30, 2024 as litigation claims against the banking group rose. Access Holdings Plc. is currently entangled in two major litigations with sizeable claims. In these two litigations, the total amount claimed against the group is estimated at N11.3 trillion.
The group stated that these claims are pending resolution, and as of the reporting date, the outcome is uncertain. Access stated that in first legal case, the group acknowledged a lawsuit filed by Dr. Darlington Amadasu, against Access Bank & Access Holding Plc, the Central Bank of Nigeria, the Securities and Exchange Commission, and late Herbert Wigwe before the Federal High Court in Benin.
Dr. Amadasu is claiming that he had 13 investments with the defunct Intercontinental Merchant Bank, which have been carried over during multiple transitions from Intercontinental Merchant Bank to Access Bank Plc.
According to the group, the litigant alleged that the bank mishandled these investments, which he claims should now be worth over N10.29 trillion. Access Holding Plc argues that Dr. Amadasu’s investments consisted of two fixed deposits totaling approximately N87.63 million, which were transferred from Intercontinental Bank to Access Bank & Access Holding Plc after the merger in 2012.
Access Plc said these investments were rolled over upon maturity until 2019, after which Dr. Amadasu withdrew all funds, including accrued interest, and transferred them to his Stanbic IBTC Bank accounts. According to the bank, Dr. Amadasu has fully liquidated his investments and currently has no existing investments with Access Bank & Access Holding Plc.
In the second legal case, the Plaintiffs claim ownership of the trademark and copyright to the literary work titled “AFRICAN FILMS FESTIVAL” and allege that African International Films Festival Limited (“AFRIFF”) violated their rights by organising events under the name “African International Films Festival” without their permission.
The plaintiffs alleged that “African Film Festival”, a trademark registered since 2003, was usurped by the group. In its defence, Access Holdings refutes the plaintiffs’ claims, stating that it merely provided a donation to AFRIFF as part of its corporate social responsibility (CSR) initiatives and was not involved in any trademark violation.
The group said it has assessed the potential financial impact of these claims and believes that it is not possible to reliably estimate the timing or amount of any potential outflow of resources that may arise from these legal proceedings. #Litigation Claims against Access Plc Hits N11.3Trn Nigeria Eurobond Yield Drops to 9.6% on Fresh Rally
