CASE DIGEST – BANKS ARE LIABLE TO PAY INTEREST ON CUSTOMERS’ FUNDS WRONGFULLY WITHHELD

OMNI PRODUCTS (NIG.) LTD. & ANOR. v. UNION BANK OF NIGERIA

SUPREME COURT OF NIGERIA

(PETER-ODILI; MUHAMMAD; KEKERE-EKUN; NWEZE; EKO, JJ.SC)

Omni Products (Nig.) Ltd and Amechi Christopher E’Chukwu (“the Appellants”) sometime in 1982, approached Union Bank of Africa (“the Respondent”) with a request to purchase the Pounds Sterling equivalent of N25,000.00 for the purpose of remittance to Bakaert International Trade, Belgium. In pursuit of this transaction, the Appellants complied with all regulatory and banking requirements. They duly obtained the approval of the Honourable Minister of Finance and paid the requisite bank charges to the Respondent. Payment for the foreign exchange was made in two instalments of N15,000.00 and N10,000.00, respectively. Whilst the Respondent successfully remitted the Pounds Sterling equivalent of the second instalment of N10,000.00, it failed to remit the equivalent of the first instalment of N15,000.00. The said sum was neither transferred to Bakaert International Trade nor refunded it to the Appellants.

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