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GTBank Loses ₦970 Million Debt Case Against MKO Abiola’s Son, RCN Networks
– By TalkBrand Africa Business Desk
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Lagos, Nigeria – June 21, 2025 | The Court of Appeal, Lagos Division, has nullified a 2014 judgment in favour of Guaranty Trust Bank (GTBank) over a ₦970 million debt claim against RCN Networks Limited and Agboola Abiola, son of the late MKO Abiola. The appellate court ruled that the alleged Deed of Legal Mortgage presented by the bank was fraudulent and unreliable.
The judgment delivered by Justice Paul Bassi, alongside Justices Jamilu Yammama Tukur and Balkisu Bello Aliyu, found substantial inconsistencies in the mortgage documents and held that the Federal High Court erred in its previous ruling, which had favoured GTBank’s claim to foreclose on Abiola’s property.
Background of the Dispute
In 2014, GTBank initiated legal action to recover a debt of ₦970 million from RCN Networks and Agboola Abiola. Central to the bank’s case was a Deed of Tripartite Legal Mortgage dated August 15, 2012, purportedly executed between the bank, RCN Networks, and Abiola. Based on this document, GTBank claimed the right to take possession of a valuable Lagos property located at No. 40, Sobo Arobiodu Street, GRA Ikeja, through a court-appointed receiver.
However, Abiola and RCN Networks challenged the authenticity of the mortgage, filing an appeal (CA/L/888/2014) on grounds that Abiola’s signature had been forged, and that he never executed or consented to the mortgage transaction.
Key Findings by the Court of Appeal
The Appeal Court closely scrutinised the mortgage documents submitted by GTBank and found glaring irregularities:
- Pagination Inconsistencies: The court noted that pages in the mortgage deed showed two sets of pagination – “pages 2–9 of 9” and “page 11 of 17” – indicating that sections were lifted from unrelated documents.
- Lack of Evidence of Signature: GTBank failed to produce credible proof that Agboola Abiola actually signed the mortgage or was involved in its execution.
- Forgery Allegations: The court held that the burden of proof rested on GTBank to confirm the authenticity of the signatures, which it failed to do.
Delivering judgment, Justice Bassi declared:
“The document relied upon by the respondent [GTBank] has been proven to be forged… The trial court erred in relying on the document without properly evaluating the overwhelming evidence pointing to forgery.”
The appeal was upheld, and the 2014 judgment was set aside. The court also dismissed GTBank’s counterclaims and ruled that each party should bear its own legal costs.
Implications of the Ruling
The ruling is a significant win for property rights and due process in Nigeria’s financial and legal systems. It sends a strong message to lenders and institutions to ensure proper documentation and execution when entering into mortgage or debt arrangements.
This case may also shape how courts handle similar disputes in the future, especially in cases involving high-value collateral and allegations of forged documentation.
TalkBrand Africa’s Legal Insight
- This ruling reinforces the role of courts as guardians of contractual fairness.
- It underlines the need for banks to enforce strict due diligence in loan securitization processes.
- It opens the conversation on ethical banking practices and how borrowers must be protected from documentation fraud.
Stay with TalkBrand Africa for in-depth business and legal reports on matters shaping the Nigerian financial landscape.
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