N200b Agric Credit Dispute: Appeal Court slams NAIC, upholds First Bank victory

By : Ameh Ochojila

Date: 29 November 2025 8:17pm WAT

Share :

Gavel

Gavel

The Court of Appeal, Abuja, has dismissed the appeal filed by the Nigerian Agricultural Insurance Corporation (NAIC) against First Bank of Nigeria in the long-running dispute over the disbursement of the Federal Government’s N200 billion Commercial Agriculture Credit Scheme.

The decision was one of seven precedent-setting judgments delivered in six hours on Friday by Justice Okon Abang, underscoring his reputation as a hardworking, firm, and uncompromisingly principled jurist whose rulings continue to shape Nigeria’s legal landscape across criminal, human rights, banking, and civil litigation.

In 2013, the NAIC dragged First Bank before the Federal High Court via originating summons, alleging that the bank failed to deduct the mandatory 2.5 per cent premium under the agriculture credit scheme. First Bank promptly filed a counter-affidavit and written address, with both sides joining issues and exchanging further processes over the years.

But when the case was ripe for hearing, NAIC sought to suddenly withdraw its suit—claiming an unnamed Bankers’ Committee representative had approached it for an out-of-court settlement.

First Bank objected, insisting that once pleadings had been exchanged, withdrawal without consent should lead to dismissal, not a mere striking out. To strike out, the bank argued, would allow NAIC a second bite at the cherry—an abuse of process.

The Federal High Court agreed and dismissed the suit, prompting NAIC to head to the Court of Appeal.

Delivering the unanimous judgment of the Court of Appeal, Justice Abang held that NAIC’s appeal was “grossly misconceived” and that, having seen the bank’s defence, NAIC attempted to retreat and re-strategise, “only being smart, believing that it could cunningly manipulate judicial proceedings to save a suit that appears weak and manifestly unsupported.”

He stressed that, once a defendant’s counter-affidavit has been served, any withdrawal by the claimant must naturally lead to dismissal, not striking out, to avoid overreaching the respondent.

Justice Abang agreed with the trial court that, “Since issues have been joined and the matter has previously been adjourned on several occasions, the proper order to make on the application of the plaintiff is to dismiss the suit.”

The Court of Appeal also questioned NAIC’s reliance on an alleged intervention by the Bankers’ Committee—a non-party that had earlier resisted being joined in the matter.

The appellate court concluded that NAIC, having sighted the bank’s counter-affidavit, simply lost confidence in its case and sought a “soft landing” to refile later.

“This cannot be allowed under our watch. The appellant cannot command the impossible,” Justice Abang held, agreeing with the decision of the Federal High Court and dismissing NAIC’s appeal in its entirety, affirming the lower court’s ruling and awarding N1 million costs in favour of First Bank.

The judgment revisits the implementation of the N200 billion Commercial Agriculture Credit Scheme (CACS) launched in 2009 and funded through a DMO-issued bond. The scheme was a flagship intervention of the CBN to boost agricultural productivity through low-interest financing capped at nine per cent.

Tags: