TSA: FG to seek out-of-court settlement with seven banks

Federal Government has said that it planned to withdraw its case against seven local banks over what it says is $793 million due to the state, and that it was seeking an out-of-court settlement instead. The banks concerned have said either that they do not owe the government money or have paid what is due.

Last month a court ordered the banks to transfer a combined $793 million due to the government immediately and accused the banks of withholding funds collected on behalf of the state.
Lawyer Yemi Akinseye-George, however, told the court on Tuesday the government would seek an out-of-court settlement in the matter. The court is due to rule on the case on Wednesday.
“The government has decided to withdraw the case,” he told the court without elaborating.
Several of the lenders have said they have remitted all funds due to government.
Three of the lenders — United Bank for Africa, Fidelity Bank and Sterling Bank, said that they were not owing government.

Babatunde Ogungbamila, a lawyer for Keystone Bank, told the court that the government ought not to have gone to court over the matter and asked that a cost of N20 million be imposed on government. Other banks also followed. Nigerian National Petroleum Company said the Central Bank of Nigeria was supervising the payment of funds to the government totalling $231.8 million from Diamond Bank , Skye Bank and Keystone Bank, remittances due to the oil company from the lenders.