Court Halts House Of Reps Investigation Into Sterling Bank’s Approximately $17M Loan Recovery
A Federal High Court in Lagos has issued an order restraining the House of Representatives and the Chairman of the House Committee on Public Petitions, Hon. Michael Etaba, from continuing their investigation into Sterling Bank’s $17,079,000 loan recovery. The order, granted by Justice Daniel Osiagor, also prevents the summoning of Sterling Bank’s Group CEO, Yemi Odubiyi, pending the resolution of an interlocutory injunction.
The suit, FHC/L/L/CS/185/2025, was filed by Sterling Bank Limited, Sterling Financial Holdings Company Plc, Yemi Odubiyi, Abubakar Suleiman, Lekan Olakunle, and Dele Faseemo. They named the House of Representatives, Hon. Michael Etaba, Dr. Innocent Brendan Usoro, Miden Systems Limited, and the Inspector General of Police as defendants.
Court documents revealed that Sterling Bank had entered into a Vessel Lease Facility agreement worth $17,079,000 with Dr. Innocent Brendan Usoro and Miden Systems Limited in 2009. The facility had a 48-month term with a six-month moratorium on repayments but was later restructured in 2017 for another five years due to repayment failures.
According to Sunday Adegoke, Head of Recovery Litigation at Sterling Bank, the borrowers failed to repay the loan, allegedly diverting funds for personal use. He also alleged that assets securing the loan, including vessels, were deliberately damaged.
Despite efforts to recover the debt, the borrowers allegedly filed multiple lawsuits and petitions against Sterling Bank, accusing it of unlawful deductions and money laundering.
A Consent Judgment in Suit No: FHC/L/CS/946/2021 confirmed their liability for $31,335,636.88, yet they sought to alter the settlement terms in another suit (FHC/L/CS/54/2024) while continuing to petition the National Assembly.
In response to the petitions, the House Committee on Public Petitions summoned Sterling Bank officials to appear on February 5, 2025. However, the plaintiffs argued that the ongoing investigation interferes with pending court proceedings, making it sub judice. They also claimed that the Committee lacked legal authority to investigate matters under judicial review.
Justice Osiagor, after reviewing the motion, granted the ex parte order suspending the investigation and adjourned the case to February 21, 2025, for the hearing of the Motion on Notice.
