https://thenationonlineng.net/bank-phb-shareholders-seek-n58b-compensation-cbn-keystone-bank/

Bank PHB shareholders seek N58b compensation from CBN, Keystone Bank
Joseph Jibueze by Joseph Jibueze January 29, 2015 in News Update
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Some shareholders of the defunct Bank PHB Plc have sued the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos over the alleged illegal transfer of their shares to Keystone Bank without compensation.

The plaintiffs are demanding N38.6billion from the defendants being “fair compensation” to them for the value of their investment in Bank PHB Plc.

They also want N20billion as damages for the loss of their investments’ value in Bank PHB.

The plaintiffs are praying for an order setting aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB.



Keystone Bank, Attorney-General of the Federation, Nigeria Deposit Insurance Corporation (NDIC) and the Asset Management Corporation of Nigeria (AMCON) are other defendants in the action.

The plaintiffs said NDIC on August 5, 2011, wrote the Managing Director of Bank PHB, informing him that the bank’s assets and liabilities had been transfered to Keystone Bank.

According to the plaintiff, the letter entitled: “Re: Exercise of intervention powers by the NDIC” purports to vest Bank PHB’s assets and liabilities, including the plaintiffs’ investments, in Keystone Bank.

They said NDIC did so without any form of adequate compensation being paid to the shareholders.

The plaintiffs are praying the court to declare that the action amounted to unlawful compulsory acquisition of their investments and is, therefore, unconstitutional, arbitrary, null and void.

They also want the court to hold that the purported nationalisation of their investments without being paid compensation is unlawful and contravenes Section 44 of the 1999 Constitution.

Nine of the shareholders sued for themselves and on behalf of others whose names were on the register of members as at October 2, 2009.

They are – Benedicta Oyiana, Ifeyinwa Oyiana, Chioma Oyiana, Okoli Dumebi, Felix Oyiana, Pius Okonji, Obiageli Okonji, Austin Ndiwa and Allwell Brown.

The defendants, however, filed preliminary objections to the suit, urging the court to strike it out for lack of jurisdiction.

Arguing the objection on Thursday, CBN’s lawyer, Mr. Kola Awodein, said the plaintiffs did not the file the action properly.

“We are saying that their claim is contentious, so they should come by writ of summons, not originating summons.

“It’s not sentiment. It’s about the law. If you’re coming before the court, you must come properly. I urge your Lordship to strike out the matter,” he said.




Hello Folks,

I'm wondering if anyone has information regarding above court case. I invested N500,000.00 in said Bank PhB shares, and I can't believe my hard earned money is gone! Our government surely doesn't care about plight of common man otherwise should've compensated poor masses who invested in this bank they took over. What's your thought my fellow Nigerians

I was researching this issue and came across your post. I invested N300,000 just because my brother in-law was a staff at the time and needed to meet the target set for him.
Did you make any headway finding out the outcome of the case. I didn’t.
It is so crazy that the bank’s assets were sold to
Keystone Bank by AMCON without compensating the shareholders. Where in the world is that done?

I also lost the money I invested in Allstates Trust Bank just because I was trying to help a friend who was a staff meet her target