Alleged N350m Debt: Standard Chartered Sues Dana Motors

Standard Chartered Bank has instituted a suit before the Federal High Court in Lagos against Dana Motors Limited and Dana Plast Limited over an alleged outstanding debt of ₦355 million.

In a statement of claim filed by its counsel, Dr. Niyi O. Olopade (SAN), the bank stated that in 2012, it granted Dana Motors Limited credit facilities, including a ₦200 million overdraft, a $5 million import letter of credit limit, and a $4 million loan. The facilities were supported by Vandana FZCO, a sister company of Dana Plast Limited.

Around the same period, the bank also extended a ₦200 million overdraft facility to Dana Plast Limited, which was fully drawn.

The bank alleged that both companies defaulted on repayment obligations, prompting a restructuring of the facilities through letters dated April 21, 2015, and May 14, 2019.

As of December 30, 2016, Dana Motors’ indebtedness stood at ₦389,142,584.10, while $2,646,041.34 remained outstanding on facilities linked to Vandana FZCO.

Dana Plast’s indebtedness at the same date was put at ₦315,489,875, with interest continuing to accrue on the facilities.

Following continued defaults, the bank filed winding-up petitions against the companies in 2021.

However, upon receiving the petitions, the defendants approached the bank for an amicable resolution and jointly offered to pay ₦1.1 billion in instalments between September 20, 2021, and October 20, 2022, as full and final settlement of the debt.

The bank stated that Dana Plast, in a letter dated July 5, 2021, reaffirmed the offer but adjusted the payment timeline to run from August 20, 2021, to October 20, 2022.

According to the bank, the defendants paid a total of ₦745 million under the settlement arrangement, leaving an outstanding balance of ₦355 million after the agreed payment period elapsed.

It added that part of the ₦745 million payment was derived from the sale of a mortgaged property located at Penthouse, No. 19, 9th Floor, Block A, Admiralty Towers, No. 8 Gerrard Road, Ikoyi, Lagos, which was sold for ₦234 million at the request of the defendants.

The bank further stated that it withdrew the winding-up petitions on February 16, 2026, following the partial payment, but the defendants allegedly failed to settle the outstanding balance of ₦355 million.

It also alleged that despite the outstanding debt, the defendants requested a letter of non-indebtedness, which the bank declined, insisting that the obligation must first be fully liquidated.

The bank claimed that the defendants had acknowledged the debt in several correspondences and affidavits, including one deposed to by Sodiq Olorun-Oje on March 25, 2025.

It added that the defendants sought extensions for repayment and later requested a waiver, offering to pay ₦100 million, which the bank rejected, countering with a demand of ₦105 million within 14 days—an offer the defendants allegedly failed to meet.

The bank said repeated demands for payment of the outstanding ₦355 million were not honoured, prompting it to instruct its solicitors to commence legal action.

Standard Chartered Bank is seeking an order compelling the defendants to jointly and severally pay the outstanding ₦355 million, with interest at 28 per cent per annum from July 20, 2022, until full repayment, as well as the cost of the suit.