Wema Bank Defends Controversial Banana Island Property Sale
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Wema Bank says its sale of disputed Banana Island properties was lawful and tied to debt recovery efforts. The clarification comes as regulators pursue legal action over assets linked to the collapsed Gulf Bank.
Wema Bank has defended its handling of disputed Banana Island properties in Lagos following lawsuits filed by the Nigeria Deposit Insurance Corporation (NDIC).
The bank says the transactions were part of legitimate efforts to recover debts owed by the defunct Gulf Bank after an interbank exposure dating back to 2002.
Wema Bank claims investigations by the Economic and Financial Crimes Commission traced diverted Gulf Bank funds to luxury Banana Island properties acquired through separate companies, which later relinquished their interests as part of debt settlement arrangements.
The dispute highlights the enormous financial value tied to prime Lagos real estate and the legal complexity surrounding failed-bank asset recovery in Nigeria.
The bank also says NDIC previously acknowledged the outstanding indebtedness in official correspondence now being used in the ongoing Federal High Court proceedings.
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