The Court of Appeal in Abuja has delivered a significant judgment in the long-running legal battle between First Bank of Nigeria and the Nigerian Agricultural Insurance Corporation (NAIC) over the implementation of the Federal Government's N200 billion Commercial Agriculture Credit Scheme.
Legal Battle Over Agric Scheme
The dispute dates back to 2013 when NAIC dragged First Bank before the Federal High Court through originating summons. The corporation alleged that the bank failed to deduct the mandatory 2.5 per cent premium under the agriculture credit scheme framework.
First Bank promptly responded with a counter-affidavit and written address, setting the stage for years of legal exchanges between both parties. However, when the case was finally ripe for hearing, NAIC made a surprising move to suddenly withdraw its suit.
Withdrawal Attempt and Legal Objection
NAIC claimed that an unnamed representative from the Bankers' Committee had approached them for an out-of-court settlement. This justification did not sit well with First Bank, which strongly objected to the withdrawal attempt.
The bank argued that once pleadings had been exchanged between both parties, any withdrawal without consent should lead to dismissal of the suit, not merely striking it out. First Bank maintained that allowing a strike out would enable NAIC to have a second bite at the cherry, constituting an abuse of judicial process.
Appeal Court's Landmark Ruling
Justice Okon Abang, delivering the unanimous judgment of the Court of Appeal, described NAIC's appeal as "grossly misconceived". The judge held that after seeing the bank's defence, NAIC attempted to retreat and re-strategize.
Justice Abang emphasized that once a defendant's counter-affidavit has been served, any withdrawal by the claimant must naturally lead to dismissal to avoid overreaching the respondent. The court agreed with the trial court's position that since issues had been joined and the matter adjourned several times, the proper order was dismissal of the suit.
The appellate court also questioned NAIC's reliance on alleged intervention by the Bankers' Committee, noting it was a non-party that had earlier resisted being joined in the matter. The judgment concluded that NAIC, having sighted the bank's counter-affidavit, simply lost confidence in its case and sought a "soft landing" to refile later.
Scheme Background and Implications
The judgment revisits the implementation of the N200 billion Commercial Agriculture Credit Scheme (CACS) launched in 2009 and funded through a bond issued by the Debt Management Office. This flagship intervention by the Central Bank of Nigeria was designed to boost agricultural productivity through low-interest financing capped at nine per cent.
The Court of Appeal dismissed NAIC's appeal in its entirety, affirming the lower court's ruling and awarding N1 million costs in favour of First Bank. This decision represents another precedent-setting judgment from Justice Abang, who delivered seven such rulings within six hours on Friday, reinforcing his reputation as a principled jurist shaping Nigeria's legal landscape.
