UBA Wins N156bn Debt Recovery Case Against Stallion Group, Vaswani Brothers
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The Federal High Court in Lagos has ruled in favour of United Bank for Africa in its ₦156.03 billion debt recovery dispute with Stallion Group and associated companies, but the group has challenged the decision on appeal.
United Bank for Africa (UBA) Plc has secured a favourable judgment in its long-running legal dispute with Stallion Group and companies associated with the Vaswani brothers over an alleged debt of approximately ₦156.03 billion.
The Federal High Court sitting in Ikoyi, Lagos, presided over by Justice Daniel Osiagor, delivered the judgment on Friday, October 16, 2026, upholding the appointment of Romeo Ese as receiver/manager over assets connected to the debt recovery proceedings.
The court granted the reliefs sought by UBA, including affirming the receiver/manager's authority to take possession of mortgaged properties and seek protective orders to safeguard the bank's recovery interests.
The judgment also upheld the liability of the guarantors and the enforceability of the mortgage securities associated with the disputed credit facilities.
However, the dispute remains subject to further legal proceedings after Stallion Group announced that it had filed an appeal against the decision.
Court Upholds UBA's Debt Recovery Measures
The judgment represents a significant development in UBA's efforts to recover the outstanding amount it says is owed by Stallion Group and related companies.
According to reports of the proceedings, the court upheld the appointment of Ese as receiver/manager and affirmed his authority to take possession of the mortgaged assets covered by the recovery process.
The court also restrained the defendants from diverting receivables due to them from government agencies, a measure intended to protect the bank's interests while the debt recovery process continues.
Another issue addressed by the court was an objection raised by Barbedos Ventures Limited, identified as the 12th defendant in the proceedings.
The court reportedly dismissed the objection after finding that the company had not established sufficient proprietary rights over the mortgaged property to require its consent before the mortgage was created.
How the ₦156 Billion Dispute Started
The dispute dates back to credit facilities UBA said it extended to Stallion Nigeria Limited in 2014.
According to the bank's account of the transactions, the facilities were granted under arrangements that permitted their use by other companies within the Stallion Group, subject to the terms of the relevant agreements.
The bank also maintained that properties in Lagos, Kano and Port Harcourt were provided as security for the loans.
Court filings referenced in media reports further indicated that Sunil Vaswani, chairman of Stallion Group, provided a personal guarantee in connection with the facilities.
The disagreement later developed into a legal battle over the outstanding obligations, the amount recoverable and the enforcement of the securities provided for the credit facilities.
Disagreement Over Government Contract Payments
A central aspect of UBA's case concerns payments connected to a federal government vehicle supply contract awarded to Stallion Motors in 2014.
According to allegations presented by the bank, the arrangement involved supplying military vehicles and buses, with proceeds from the contract expected to be paid into Stallion's account with UBA.
The bank alleged that a payment of $50 million was directed to an account in Dubai and that approximately ₦8.2 billion was subsequently received offshore rather than through the agreed account.
UBA argued that the transactions formed part of the circumstances surrounding the outstanding debt and its efforts to enforce the relevant security arrangements.
These details reflect allegations advanced by the bank in the dispute and should not be treated as separate findings of criminal wrongdoing.
Stallion Group Challenges the Judgment
Despite the ruling in UBA's favour, Stallion Group has rejected the decision and indicated that it intends to pursue further legal action.
In a statement reported by Premium Times on October 16, the group said it disagreed with the judgment and believed there were grounds for appellate review.
The company also announced that it had filed a notice of appeal at the Court of Appeal and sought a stay of execution pending the determination of the appeal.
The development means the dispute may continue through the appellate courts, where the parties can challenge the legal conclusions reached by the lower court.
A notice of appeal and an application for a stay do not, by themselves, establish that the judgment has been overturned or that a stay has been granted. The status of any stay application therefore remains important to the next stage of the proceedings.
What the Judgment Means for UBA
The ruling strengthens UBA's legal position in seeking to recover the amount it claims remains outstanding.
By upholding the receiver/manager's appointment, the mortgage security and the guarantors' liability, the court has affirmed key elements of the bank's recovery strategy at this stage of the litigation.
The restrictions on diverting receivables from government agencies may also help protect funds connected to the dispute, subject to the precise terms and implementation of the court's orders.
However, the ultimate outcome will depend partly on the appeal and any subsequent orders made by the appellate court.
The case also highlights the importance of loan agreements, guarantees and collateral arrangements in commercial lending, particularly where financing involves several related companies.
What Happens Next?
Attention will now turn to the proceedings before the Court of Appeal and the status of Stallion Group's request to suspend enforcement of the judgment.
The appellate court's decisions will help determine whether the lower court's ruling remains in force as delivered or whether any part of it should be varied or set aside.
For now, UBA has secured a favourable judgment at the Federal High Court, while Stallion Group is contesting the outcome through the judicial process.
NaijaGossiper will continue to monitor the case and report further developments as verified information becomes available.