Mr A.T Kehinde, SAN, sole arbitrator, has ordered Madvan Global Resources Ltd to pay the sum of N1.3billion to Federal Mortgage Bank of Nigeria, over breach of loan agreement.
Also, the Tribunal awarded the sum of Fifty million Naira (N50,000,000.00) in favour of FMBN
as general damages against the firm.
Claimant in the legal dispute, represented by its counsel, Barrister Douglas Najime, the Federal Mortgage Bank of Nigeria, had sought the recovery of an outstanding debt arising from an Estate Development Loan Facility offered to the 1st Respondent (Madvan Global Resources Ltd) on 31st May 2012.
But delivering its final judgement on March 23, 2026, Mr Kehinde, appointed by the Chief Judge, High Court of the Federal Capital Territory, as sole arbitrator in the matter, held that “the 1st Respondent is in breach of the repayment of the principal loan sum of N494,544,636.00 (Four Hundred and Ninety-Four Million, Five Hundred and Forty-Four Thousand, Six Hundred and Thirty-Six Naira only) being the Loan Facility granted to the 1st Respondent by the Claimant.
It was the finding of the sole arbitrator that “The 1st and 2nd Respondents have failed to repay the principal sum and accrued interest in the sum of N1,254,334,327.01 (One Billion, Two Hundred and Fifty Four Million, Three Hundred and Thirty-Four Thousand, Three Hundred and Twenty-Seven Naira, One Kobo) only and are therefore jointly and severally liable.
“The Claimant is entitled to the Right of Sale of the Mortgaged Properties; the property situate at Plot No. 521 in Cadastral Zone F21 Jibi, FCT, Nigeria covered by Statutory Right of Occupancy No. MISC 112782 in the Name of Madvan Global Services Limited dated 11th April 2011, and property lying at Plot 1306, Maitama District (AOS), covered by Certificate of Occupancy No15346 at Page 15346 in Volume 76 at the Land Registry Office at AGIS, FCT.
Consequently, Mr Kehinde held that the Respondents’ Right of Redemption to the Mortgaged Properties is hereby foreclosed.
In it’s final award, the Tribunal granted the Right of Sale of the Mortgaged Properties referred to above as well as
an Order of Perpetual Injunction against the Respondents, their agents, privies and assigns from dealing, disposing, alienating, removing or otherwise dealing with the Mortgaged Properties.
“Therefore, the Arbitral Tribunal having heard, read and considered the relevant contracts, correspondence and other documents placed before it and having considered all the evidence, oral and written submissions presented by the Parties, HEREBY FINDS, AWARDS, ORDERS AND DIRECTS AS FOLLOWS: Payment of Debt.
“The Respondents are jointly and severally liable and shall pay the Claimant, the sum of N1,254,334,327.01 (One Billion, Two Hundred and Fifty Four Million, Three Hundred and Thirty-Four Thousand, Three Hundred and Twenty-Seven Naira, One Kobo only) being the total outstanding principal and interest as at 28th February 2025.
“Post Award Interest on Judgement Sum: Interest shall accrue on the total sum above at 10% per annum from the date of this Award until final liquidation.
“Foreclosure: The Respondents Equity of Redemption in the Properties at Plot 521, Jibi District and Plot 1306, Maitama District is hereby FORECLOSED.
“The Claimant is authorised to sell these properties to recover the debt after 30 days of the
publication of this award.
“Award of Cost and Damages: The Respondents are ordered to pay the sum of 5, 000, 000.00 (Five Million Naira) only and N50,000,000.00 (Fifty Million Naira) only as cost of the arbitration and General Damages respectively.
“Interest shall further accrue on the cost and General Damages awarded in the sums of 5, 000, 000.00 (Five Million Naira) only and N50,000,000.00 (Fifty Million Naira) jointly at the interest rate of 10% from the date of the Award until the sum is liquidated.
“Order for Payment: Respondents shall pay the above sums to the Claimant within 30 days of the date of this Award and the Right of Foreclosure shall crystalize upon the expiration of the 30 days if the payment is not effected” the Tribunal ordered.