A Federal High Court sitting in Lagos has ordered a businessman, Mr. Okonjo Udokanma, to pay Providus Bank Limited the sum of $97,982 being the outstanding balance of an overdraft facility granted to him by the bank.
Justice Chukwujekwu Aneke, who delivered the judgment, held that the claimant (Providus Bank) successfully proved its case that the defendant failed to repay the credit facility as agreed, despite several demands and opportunities given to regularise the account.
According to court documents, Providus Bank had filed the suit seeking the recovery of the sum along with accrued interest after Udokanma allegedly defaulted on the terms of repayment for the overdraft granted to him for business transactions.
In its statement of claim, the bank stated that the defendant approached it for an overdraft facility, which was duly approved and credited to his account. However, despite repeated reminders, he failed to settle the outstanding amount, prompting the legal action.
During proceedings, the bank’s counsel tendered documentary evidence, including the offer letter, bank statements, and demand notices, all of which the court admitted in evidence.
Justice Aneke, in his ruling, said the defendant did not provide any credible evidence to challenge the bank’s claims or to prove that the debt had been repaid.
The claimant has discharged the burden of proof placed upon it by law. The defendant, having failed to contest the material facts, is liable to pay the outstanding sum,” the judge ruled.
The court consequently entered judgment in favour of Providus Bank, ordering Udokanma to pay $97,982, being the outstanding overdraft sum, along with interest at the agreed rate until full liquidation.
The judgment also reaffirmed the court’s stance on the sanctity of loan agreements and the need for borrowers to honour contractual obligations to financial institutions.
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