Wilbough De-Ultimate Nig Ltd and Chief O.O Okonkwo v Ibtc Chartered Bank Plc – A Comment

Abstract

The issue of excessive charges by commercial banks over loan facilities granted to customers is a long standing problem. It is so germane that it is one of the primary issues of concern to the Banker’s Committee. It is thus a serious matter not only for the businessmen but also for the lawyers to ascertain how and when these charges may be lawfully made. This is of particular interest in any economy such as an economy in recession like ours where the cost of doing business is so prohibitive that putting more onerous obligations on businesses can only spell one thing - collapse of businesses. Wilbough De-Ultimate Nig Ltd. v IBTC Chartered Bank Plc is one of those cases dealing with the issue of excessive charges by banks on loan accounts. Experience has shown that most of the time, these charges only come to the knowledge of the customer after the loan agreement has been completed and running. The case is of particular interest because of the interpretative acumen that was brought to bear on the resolution of the dispute and the principles(s) which the case suggests or seems to establish. In arriving at the decisions in this case, the learned Judge appeared to have been faced with a novel situation and the dexterity with which he dealt with the novelty deserves some commendation.