₦61.45bn UBA debt: Court freezes WEMPCO accounts, executives risk jail

The Lagos Division of the Federal High Court has ordered the freezing of accounts linked to Western Metal Products Company (WEMPCO) Limited across 27 commercial banks and fintech firms over an alleged ₦61.45 billion debt owed to United Bank for Africa (UBA).

In a ruling delivered on April 2, Justice Akintayo Aluko granted an interim order appointing Romeo Ese Michael, Esq., as receiver-manager over WEMPCO’s unencumbered assets, including two Wärtsilä power generators.

The court also directed financial institutions to disclose any funds belonging to WEMPCO and its affiliated companies.

The judge further issued a Form 48, a formal notice warning of the consequences of disobeying a court order, stating that key executives of the company could face imprisonment for contempt if found to have interfered with the receiver-manager’s operations in the ongoing debt recovery proceedings.

Those named in the contempt proceedings include Lewis Shui Ngor Tung, Phillip Shui Che Tung, Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Tung Robert, Cl Ip, and Taiwo Alli.

The legal dispute arises from a multicurrency credit facility agreement executed on September 30, 2019, under which UBA alleges that WEMPCO and 16 affiliated companies—including Nigerian Enamelware Company Plc, Lagos Oriental Hotel Limited and Prime Nigeria Wood Products Co. Ltd.—owe ₦61.45 billion.

According to the report, the facility was secured during a period when WEMPCO was undertaking major investments in steel production and power infrastructure.

Taiwo Alli, one of the individuals named, serves as managing director and chief executive officer of Nigerian Enamelware Company Plc, while Robert Tung is a non-executive director of the company and among the key figures behind WEMPCO’s growth.

WEMPCO, one of Nigeria’s largest manufacturing conglomerates, was founded in 1954 by the late K.F. Tung and employs between 12,000 and 13,000 workers across its subsidiaries, which include Lagos Oriental Hotel.

However, the company has faced mounting challenges over the past decade, including tax issues, rising energy costs and foreign exchange constraints, contributing to a significant debt burden.