Court Reaffirms Order Stopping Criminal Proceedings Against Sterling Bank Executives

A Federal High Court in Lagos has reaffirmed its earlier order restraining authorities from taking further steps on criminal allegations against Sterling Bank Limited and some of its top executives pending the determination of a substantive suit before the court.
Justice D. E. Osiagor restated the directive on Wednesday when Suit No. FHC/L/CS/158/2025 came up at the Lagos Judicial Division of the court. The suit was filed by Sterling Bank Limited, Sterling Holding Company and some of the bank’s executives against the House of Representatives and four other defendants.
At the proceedings, the plaintiffs were represented by Femi Falana, SAN, Funmi Falana, SAN, and Taiwo E. Olawanle, while L. M. Alozie, SAN appeared for the fourth defendant and Sylvester Azubuike represented the fifth defendant. Other defendants were also represented by their respective counsel.
Justice Osiagor reiterated the subsisting order directing that no further steps should be taken in respect of the criminal allegations made against the bank and its officials until the court determines the substantive suit challenging the actions of the defendants.
The court subsequently adjourned the matter until May 11, 2026, for further proceedings.
The suit challenges the powers of the House of Representatives Committee on Public Petitions to investigate issues arising from a banker–customer dispute between Sterling Bank and Miden Systems Limited, as well as its principal, Dr. Innocent Brendan Usoro.
According to the plaintiffs, the dispute stems from a loan facility of about $17.08 million granted to Miden Systems Limited in 2009. The bank said the facility was later restructured after the borrowers allegedly defaulted on their repayment obligations.
Sterling Bank further stated that the default led to recovery proceedings which resulted in a consent judgment of the Federal High Court, where the borrowers reportedly admitted liability of about $31.3 million.
Despite the subsisting judgment and other related court cases over the debt, the plaintiffs alleged that petitions were later filed before the House of Representatives Committee on Public Petitions. The committee subsequently initiated investigations and allegedly referred criminal complaints against the bank and some of its officials to law enforcement authorities.
In the suit, the plaintiffs are asking the court to determine whether the National Assembly has the constitutional authority to investigate or summon private individuals and corporate entities in matters unrelated to its law-making functions. They are also seeking clarification on whether such investigations can proceed when the issues in dispute are already before a court.
During Wednesday’s hearing, counsel for the plaintiffs drew the court’s attention to its earlier order issued on July 18, 2025, which restrained further action on the criminal allegations pending the determination of the case.
After hearing submissions from the parties, Justice Osiagor reaffirmed the order, directing all parties to maintain the status quo until the substantive issues in the suit are resolved.