Court Dismisses N374bn Ginger Farmers’ Suit Against Keystone Bank

A Federal High Court has dismissed a N374 billion lawsuit filed by a group of ginger farmers against Keystone Bank, ruling that the claims lacked sufficient merit. The case, which had drawn significant attention in the agricultural and financial sectors, centered on allegations of financial mismanagement and contract breaches related to loan disbursements for ginger farming projects.

The farmers had accused Keystone Bank of failing to release funds allocated for agricultural expansion under a financing agreement. They claimed that the bank’s actions resulted in significant financial losses, crop failures, and an inability to meet supply contracts. The plaintiffs sought N374 billion in damages, arguing that the bank’s alleged misconduct had crippled their businesses.

However, the court, in its judgment, found that the farmers failed to provide compelling evidence to substantiate their claims. The judge ruled that there was no breach of contract on the part of Keystone Bank and that the financial institution had adhered to regulatory guidelines in its lending practices. The court also noted inconsistencies in the farmers’ submissions and dismissed the case in its entirety.

Keystone Bank welcomed the ruling, stating that it had always acted within legal and ethical boundaries in its lending activities. The bank reiterated its commitment to supporting Nigeria’s agricultural sector through responsible financing and investment in agribusiness development.

While the ruling marks the end of the legal battle, some of the affected farmers have expressed disappointment, hinting at the possibility of appealing the decision. Industry experts believe the case highlights the challenges within Nigeria’s agricultural financing system and the need for clearer frameworks to prevent disputes between lenders and farmers in the future.