Nigerian Concord Newspaper
Facts have emerged on how Keystone Bank Nigeria Plc unlawfully filed a Suit against Mikap Nigeria Limited in Lagos State even when there was another pending Suit in the Federal High Court, Makurdi, against the bank by Mikap Nigeria Limited company for breach of contract, all in a bid to subvert the likely outcome of the suit.
Investigation by this newspaper revealed that Mikap Nigeria Limited had since March, 2024 sued Keystone Bank for breach of Contract by failing to disburse the Paddy Aggregation Loan of the Central Bank of Nigeria granted to Mikap Nigeria Limited through Keystone Bank as contained in the CBN offer letter dated 19th April 2019, in consequence of which the company claimed the sum of N31 billion from the bank as special and other general damages based on the forensic audit analysis at the disposal of the company.
According to findings, Mikap Nigeria Limited had applied for N2 billion Paddy Aggregation Loan through Keystone Bank to CBN and after the loan was approved by the Central Bank of Nigeria, Keystone Bank failed to disburse the loan to the beneficiary, Mikap Nigeria Limited rather, Keystone Bank converted the loan sum for other purposes, which made it impossible for Mikap to access the loan, even after several demands for the release of the facility to purchase paddy needed for the production of rice.
Findings also revealed that, though Keystone Bank disbursed the N2 billion within two days to Mikap’s account as stipulated by the CBN, it converted the said loan for other purposes despite the stipulation by the CBN that the purpose for the loan can only be changed with the approval of CBN. Curiously, three days after disbursement of the loan to Mikap Nigeria Limited, Keystone Bank unilaterally removed the entire N2b without the consent of Mikap Nigeria Limited and approval of CBN.
Interestingly, Mikap Nigeria Limited sued Keystone Bank in March 2024 for breach Contract claiming N31billion special damages and other general damages in Suit No. MHC/119/2024 against Keystone Bank. The Suit reached an advanced stage with over 37 exhibits tendered by witnesses including one from the CBN who testified in favour of the company. The Suit was adjourned to 23rd February, 2026 at the instance of Keystone Bank for defence.
Rather than enter its defence, Keystone Bank engaged another Counsel, Kunle Ogunba, SAN who filed a fresh Suit before the Federal High Court, Lagos State against Mikap Nigeria Limited purporting to place the company on Receivership for an undisclosed debt. The two Deed of Legal Mortgages which Keystone Bank used to foreclose Mikap Nigeria Limited and which were sighted by our reporters were stamped by Keystone Bank to cover Five Million Naira only each and were all registered at the Makurdi Lands Registry, Benue State
It was however, gathered that Mikap Nigeria Limited has filed a Motion for Stay of Action and Notice of Preliminary Objection against the proceedings in Lagos State on the grounds that the fresh suit filed by Keystone Bank before the Federal High Court, Lagos was an abuse of Court process. The Company is asking Keystone Bank to go and defend themselves in the pending suit in Makurdi, which predate the suit filed on the 5th January, 2026 by Keystone Bank.
During our investigation, some legal experts opined to this Newspaper that it’s bad practice to leave Benue State and file a case against Mikap Nigeria Limited when all the defendants carry on businesses in Makurdi, Benue State and when there is a Federal High Court in Makurdi.
According to one of them: “Why would Keystone Bank file a case in Lagos State against Mikap Nigeria Limited for Receivership when actually it’s the bank that is indebted to the company. The action in Lagos State is malicious and an abuse of Court process.
Another states that: “How can Keystone Bank run from Makurdi where the company is located and file a suit against the same company in Lagos. It is clearly an abuse of Court process”
Meanwhile, this newspaper gathered that throughout its defense, in Suit No MHC/119/2024, the bank never mentioned that the Company was indebted to it.
Furthermore, we learnt that, the Federal High Court in Makurdi in Suit No FHC/CS/M/ 117/2025 restrained Keystone Bank from tampering with any of bank account of the directors of Mikap Nigeria Limited and the said suit predate Keystone Bank fresh suit in Lagos.
Investigation by this Newspaper further reveal that, Mikap Nigeria Limited has one of the highest credit standing in Benue State since its operation from 2011 to date. They have repaid all loans they had obtained from banks such as Access Bank and Bank of Industry. It is more interesting as the facility, the subject matter of dispute is still running and the Company cannot even be said to be in default.