N2bn CBN loan: Mikap faults Keystone Bank’s separate suit, calls it ‘abuse of court processes’
By Julius Alabi
The legal dispute between Mikap Nigeria Limited and Keystone Bank Nigeria Plc has taken a fresh twist as both parties are now locked in parallel court proceedings over an alleged N2 billion Paddy Aggregation Loan granted by the Central Bank of Nigeria (CBN).
Mikap Nigeria Limited had, in March 2024, instituted a suit against Keystone Bank at the Federal High Court, Makurdi, alleging breach of contract.
The company claimed that the bank failed to properly disburse a N2 billion Paddy Aggregation Loan approved by the CBN in April 2019.
The firm is seeking N31 billion as special and general damages, relying on what it described as a forensic audit analysis.
The suit, marked MHC/119/2024, has progressed significantly, with more than 37 exhibits already tendered, including testimony from a CBN representative. The matter was adjourned to February 23, 2026, for defence.
Mikap contends that although the loan sum was credited to its account as stipulated, Keystone Bank allegedly removed the funds three days later without its consent and without CBN approval, contrary to the conditions governing the facility.
The company maintains that the loan was meant strictly for paddy purchase to boost rice production and that any alteration of purpose required CBN’s consent.
However, while the Makurdi case was pending, Keystone Bank filed a separate suit before the Federal High Court in Lagos on January 5, 2026, seeking to place Mikap Nigeria Limited under receivership over what it described as an outstanding debt.
In response, Mikap has filed a Motion for Stay of Action and a Notice of Preliminary Objection in the Lagos proceedings, arguing that the fresh suit constitutes an abuse of court process since the Makurdi case predates it.
The company insists that the bank should defend itself in the ongoing Makurdi proceedings rather than initiate separate litigation in another jurisdiction.
Court documents also indicate that in a related matter, Suit No. FHC/CS/M/117/2025, the Federal High Court in Makurdi restrained Keystone Bank from tampering with the bank accounts of Mikap’s directors.
Legal practitioners familiar with the matter have questioned the propriety of instituting proceedings in Lagos when the company operates in Makurdi, Benue State, where a Federal High Court is also situated.
Mikap Nigeria Limited, which commenced operations in 2011, states that it has maintained strong credit relationships with financial institutions, including Access Bank and the Bank of Industry, and has repaid previous loan facilities.
The disputed facility, according to the company, remains active, and it maintains that it is not in default.
The unfolding legal contest is expected to test procedural boundaries regarding jurisdiction and parallel proceedings, while stakeholders await judicial pronouncements in both Makurdi and Lagos.
