N61bn loan: UBA intensifies recovery drive, seeks jail term for WEMPCO directors – The Witness Nigeria

United Bank for Africa (UBA) Plc has asked the Federal High Court to commit nine individuals associated with Western Metal Products Company (WEMPCO) to prison over alleged violations of a court order in a N61.45 billion debt recovery dispute.

The bank accused the individuals of forcibly removing a court-appointed receiver-manager from WEMPCO’s steel facility in Ogun State and obstructing efforts to take control of assets covered by the court’s directive.

In a committal application published in The Nation on Tuesday, October 27, 2026, UBA described the alleged actions as “wilful, deliberate and orchestrated disobedience” of an order issued on April 2. It asked the court to order the respondents’ imprisonment until they comply with the directive.

The application names Lewis Shui Noor Tung, Phillip Shui Che Tung, Alhaji M.A. Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Robert Tung, CL Ip and Taiwo Alli.

The proceedings represent another step in UBA’s efforts to recover N61,445,695,993.76 it claims is owed by WEMPCO and associated companies.

On April 2, Justice Akintayo Aluko ordered the freezing of funds linked to WEMPCO and other defendants across 27 banks and financial technology platforms. The judge also appointed Romeo Ese Michael as receiver-manager over assets not already pledged under a 2019 credit agreement.

According to an affidavit filed by UBA, the receiver initially took possession of the Magboro/Ibafo plant following its handover by court bailiffs.

The bank alleged, however, that the respondents subsequently brought in men who broke the receiver’s locks and threatened his staff with serious injury.

UBA further claimed that the individuals continued operating the facility and diverting funds despite the court order, thereby preventing the receiver from exercising effective control over the business.

The allegations have not been established by the court, and WEMPCO’s response was not immediately available.

Repayment talks collapse
Court documents indicate that the parties attempted to negotiate a settlement before the latest application.

On June 22, WEMPCO’s lawyers at SimmonsCooper Partners, led by Senior Advocate of Nigeria Dapo Akinosun, reportedly requested an urgent meeting with UBA. The company proposed a temporary standstill, a joint reconciliation of accounts and a structured repayment framework.

UBA’s counsel, Temilolu Adamolekun, also a Senior Advocate of Nigeria, responded the following day. While questioning the request for negotiations in light of the alleged use of force at the facility, he agreed to meet the company’s representatives.

The parties met at UBA’s Marina headquarters on June 26 and agreed to conduct a joint inspection of the Magboro plant on July 2.

UBA alleged that WEMPCO and its lawyers failed to attend the inspection and subsequently became unreachable. The bank maintained that the facility remained under the respondents’ control.

Receivership extends to power assets
The April 2 order also requires banks and fintech operators, including Moniepoint, OPay and Kuda, to disclose and preserve balances belonging to the defendants.

The receiver-manager’s mandate extends to two Wärtsilä power generators, wherever they may be found.

Other defendants in the proceedings include Lagos Oriental Hotel Limited, United Rolling Mills Limited, Wempco SQteel Mill Company and Prime Nigeria Tiles Company.

The latest development follows an earlier report that UBA secured a judgment against Stallion Group through the same receiver-manager in a related debt recovery action.

WEMPCO was founded by K.F. Tung, who arrived in Nigeria in 1967.

The case highlights the enforcement challenges lenders may encounter when seeking to take possession of assets under court-ordered receiverships. The outcome of UBA’s application will depend on the court’s assessment of the alleged breaches and whether the legal requirements for committal have been satisfied.