United Bank for Africa (UBA) Plc has secured a major legal victory in its long-running ₦156.03 billion debt recovery dispute with Stallion Group and the Vaswani brothers, following a Federal High Court judgment in Lagos that strengthens the bank’s ability to enforce its claims against the business conglomerate.
In a judgment delivered on October 16, 2026, Justice Daniel Osiagor upheld UBA’s appointment of a receiver/manager, confirmed the enforceability of mortgage securities pledged against the disputed loans and affirmed the liability of guarantors connected to the financing arrangements. The court also granted the reliefs sought by the bank.
The ruling marks a significant development in a dispute that has involved several companies associated with Stallion Group, which operates across multiple business sectors in Nigeria.
A central element of the judgment was the confirmation of Romeo Ese’s appointment as receiver/manager, giving him authority to take possession of mortgaged properties and seek protective orders to safeguard the assets.
The court also restrained the defendants from diverting receivables due to them from government agencies, reinforcing UBA’s efforts to protect potential sources of debt recovery.
In addition, the judge rejected objections raised by Barbedos Ventures Limited, the 12th defendant in the case. The court held that the company had failed to establish proprietary rights over the mortgaged property that would have required its consent before the mortgage was created.
The court further held that the defendants challenged the amount claimed rather than the existence of the indebtedness, and that reconciliation of accounts did not extinguish the underlying debt obligations.
The legal battle dates to October 2023, when UBA initiated proceedings to recover approximately ₦156.03 billion allegedly owed by Stallion Nigeria Limited and associated companies.
The dispute involved financing arrangements and assets pledged as security across Lagos, Port Harcourt and Kano. The bank sought to enforce its security interests after efforts to resolve the outstanding obligations failed to settle the matter.
Stallion Group had previously challenged UBA’s account of the dispute, maintaining that substantial repayments had been made and that the parties were engaged in discussions over account reconciliation and restructuring. The latest judgment strengthens UBA’s position, although the precise recovery ultimately achieved will depend on the enforcement process and the assets available.
The decision highlights the importance of enforceable loan agreements, properly constituted collateral and guarantees in commercial lending. For banks operating in Nigeria, the ability to recover troubled loans is essential to managing credit risk, protecting depositors’ funds and maintaining confidence in the financial system.
The ruling also underscores the role of the courts in resolving disputes over lending arrangements and creditors’ rights.
For UBA, the judgment provides a stronger legal foundation for pursuing recovery of the disputed debt. For Nigeria’s wider business environment, it reinforces the significance of contractual obligations and the legal mechanisms available when borrowers and lenders disagree.
The outcome will be measured not only by the court victory but also by how much of the outstanding debt the bank can recover through lawful enforcement.
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