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ZENITH BANK PLC & 2 ORS
V.
DIAMOND ONWUKA & ANOR

(2024) JELR 112964 (CA)

Court of Appeal 31 Dec 2024 Nigeria
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- The dispute arose from a 2007 margin facility agreement between the 1st Respondent and the 2nd Appellant (Zenith Securities), under which N100 million was advanced for share acquisition, with 1% management and 0.25% processing fees, secur

Case Details

Suit Number:CA/A/387/2019
Judges:ADEBUKUNOLA ADEOTI BANJOKO, JCA ABBA BELLO MOHAMMED, JCA ISHAQ MOHAMMED SANI, JCA
Counsel:Matthew Echo Esq, with Adeola Adeniyi Esq, for the Appellants. Chief E. A. Egbebu Esq, for the 1st Respondent.
Location:Abuja

ABBA BELLO MOHAMMED, JCA (Delivering the Leading Judgment): This is an appeal against the judgment of the Investment and Securities Tribunal (the Tribunal), delivered on 21st of February, 2019. Before the Tribunal, one Samuel Onwuka (who was substituted with the 1st Respondent by order of this Court of 14th March, 2022), sued the Appellants for declaratory reliefs and for damages for breach of contract and negligence.

The 1st Respondent’s case was that the 2nd Appellant entered into a margin facility agreement with the 1st Respondent vide a Zenith Securities Limited Offer Letter dated 8th November, 2007 for the acquisition of blue-chip shares. By the terms of the agreement, the 2nd Appellant was to advance to the 1st Respondent the sum of N100,000,000.00 (One Hundred Million Naira only) for an initial period of 360 days, at an interest rate of 18% per annum, with a management fee of 1% payable upfront every quarter), a processing fee of 0.25% (payable upfront). As security for the gran…

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