Nigerians left in limbo as NDIC and Wema Bank clash over Banana Island properties

The Nigeria Deposit Insurance Corporation (NDIC) and the commercial bank Wema Bank are now embroiled in a new dispute that has left many Nigerians uncertain.

On Thursday, the NDIC filed two new lawsuits—FHC/L/CP/466/26—at the Federal High Court in Lagos. The claims seek the recovery of Banana Island properties worth approximately N125.38 billion and an alleged unauthorised payment of N401 million.

The suits are lodged under the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act.

NDIC said the action is part of its broader effort to recover assets linked to the defunct bank whose licence was revoked by the Central Bank of Nigeria (CBN) in January.

According to the NDIC, the 12 high‑value properties in Banana Island were acquired through companies connected to Gulf Bank before that institution collapsed.

Wema Bank has said the properties were taken over because of a N1.2 billion debt owed by Gulf Bank’s former management.

The bank also clarified that the companies involved are not the same as Gulf Bank, contrary to the NDIC’s allegations.

“We unequivocally reject these claims, which are inaccurate, malicious, and clearly intended to distort the true position,” Wema Bank stated.

While the bank did not deny any link to the properties or to the defunct Gulf Bank, the controversy has raised concerns among Nigerian customers about trust and deposits.

Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, said he could not determine the impact of the dispute on its members at the time of this report.