Interview
Miracle Now Competes With Medicine as Nigerians Abruptly Dump Hospitals For Spiritual Healing Water, Soap….
Published
5 months agoon

SODIQ OJUROUNGBE examines how many Nigerians with health issues are abandoning conventional medicine for miracle cures and spiritual healing. From miracle water to divine intervention, they seek help in error
Ibrahim Adeogun’s unfortunate death two years ago still leaves severe emotional pain in the hearts of his loved ones.
His family still believes their son could have been alive if his fiancee, Mary had not reportedly taken him to a church for healing and made him abandon his medication.
Adeogun’s life took a sudden and dramatic turn one Tuesday evening when he reportedly collapsed and was rushed to a hospital in the Oremeta area of Agbado in Ogun State.
Adeogun, a painter who is in his early 30s was diagnosed with high blood pressure, a silent killer that had been lurking in the shadows, waiting to strike.
After spending several days in the hospital, Adeogun was discharged with a stern warning from his doctor; stick to the medication, avoid salty foods, and return for regular check-ups.
But Mary had other plans. Believing that divine intervention was the key to Adeogun’s recovery, she turned to her pastor for help.
The pastor’s solution was simple: a bottle of ‘miracle healing water’ that would cure Adeogun’s high blood pressure once and for all.
With renewed fervour, Mary replaced Adeogun’s medical regimen with the pastor’s miracle water. Hospital visits were replaced by church services, and the doctor’s instructions were cast aside in favour of faith.
Adeogun, despite his reservations, followed Mary’s lead, consuming the water daily and immersing himself in spiritual practices.
Months passed, and while Mary’s faith remained unshaken, Adeogun’s health deteriorated. His blood pressure climbed to dangerous levels, and his physical strength waned. Mary clung to the belief that their faith would triumph over the medical concerns, but the reality of Adeogun’s worsening condition could not be ignored.
It wasn’t until Adeogun’s condition became critical that the pastor faced the harsh truth. With urgency and regret, he urged Mary to take Adeogun back to the hospital. The realisation came too late. As the ambulance raced through the streets, Adeogun’s body was already in the throes of failure, his organs giving in to the relentless strain.
By the time they arrived at the hospital, it was clear that the damage was irreversible. Adeogun’s body had succumbed to unchecked high blood pressure, and despite the frantic efforts of the medical staff, he could not be saved.
Speaking with PUNCH Healthwise, Adeogun’s sister, Kafayat insisted that his brother died due to negligence and continuous patronage of some spiritual healers rather than visiting the hospital.
What happened to my brother has a medical solution. Blood Pressure is hereditary for us because I also have it, but his fiancee decided to ghost us and feed him with healing water and continue to take him to church rather than hospital.
“In fact, on the day he died, he was at the church, it was when they discovered that the ailment had become worse and they may end up losing him that they took him to the hospital.
We were all at the hospital when a doctor told him what he should be doing to avoid a rise in his blood pressure. We expected his fiancee to support him and encourage regular check-ups, but, unfortunately, she took my brother to church, and his life was cut short,” she expressed in Yoruba.
Kafayat lamented that his dead brother was the breadwinner of the family and since his death, they have not been able to recover from the loss.
She stated, “My brother was supportive and his loss was a big blow to us. We are unable to move on, especially for the fact that what led to his death could have been prevented. A lot of people have high blood pressure and they don’t end up dying, so, it is painful that he died of something that can be medically managed.”
Adeogun’s tragic loss was just one of many cases in a growing trend where people are increasingly abandoning hospitals and medical treatments in favour of unproven remedies, such as healing water and divine intervention.
It was discovered that this was not limited to rural areas or the uneducated, even in urban centres, educated Nigerians were seeking miracle cures, often with devastating consequences.
In a country where access to quality healthcare is limited, findings by PUNCH Healthwise revealed that many people turned to traditional or spiritual remedies out of desperation.
In Nigeria, the phenomenon of miracle healing water and other fake spiritual remedies has become a lucrative business. Self-proclaimed prophets, pastors, and traditional healers claim to possess divine powers to heal any ailment, from cancer to HIV/AIDS, using “holy” water, oils, or powders.
These charlatans prey on vulnerable patients, often those who have been diagnosed with terminal illnesses or have exhausted conventional treatment options. They promise instant cures, claiming their remedies are divinely ordained and scientifically proven.
However, these remedies are often nothing more than tap water, vegetable oil, or powdered herbs, sold at exorbitant prices.
In some cases, they may contain harmful substances that can worsen the patient’s condition or interact with prescribed medications.
We observed that the false promises of these miracle healers make patients abandon conventional treatment, causing them to present late at hospitals with advanced stages of their illnesses.
This shift towards spiritual and miracle-based remedies, despite the availability of conventional medical treatments, raises significant concerns about healthcare practices and beliefs in the country.
Another avoidable death
A medical doctor identified as Evelyn, shared a troubling perspective on how faith healers can adversely impact patient care, shedding light on a controversial issue within the medical community.
While in medical school, Evelyn said she was perplexed by the hostility some professors, especially surgeons, exhibited toward religious leaders.
“I used to find it strange how the professors hated pastors,” she recalled.
However, her experiences in the field of medicine soon clarified their disdain.
Her first encounter with the detrimental effects of faith-based healing was with a 50-year-old woman diagnosed with breast cancer.
Evelyn recounted the tragic story saying, “The woman, aware of her worsening condition, sought spiritual intervention rather than medical treatment. She was moved into a church compound by a pastor, who instructed her to stay there for eight months while her cancer advanced untreated.
By the time the woman’s family could no longer afford the “miracle offerings” demanded by the pastor, the cancer has metastasised to her spine, causing paralysis and severe infections. Ultimately, she was asked to leave the church and seek medical attention at a hospital. Sadly, she died a few weeks later.”
Evelyn noted that faith healers and traditional medical fraudsters can sometimes hinder proper medical treatment, leading to preventable deaths.
The medical doctor argued that this contributes to the country’s poor cancer survival rates and raises questions about the efficacy of modern miracles.
In all my years as a doctor, I have never seen a single patient with a terminal disease get healed by a pastor,” she asserted.
The allure of miracle cures
The attraction of miracle cures, such as healing waters and spiritual interventions, lies in their promise of instant and divine relief.
For many, these remedies offer hope where conventional medicine seems slow or ineffective.
In a country where the healthcare system is often strained, and the cost of medical care can be prohibitive, the appeal of a quick, cost-free solution becomes even more compelling.
PUNCH Healthwise observed that pastor-led churches and spiritual healing centres have become increasingly popular, with numerous testimonials claiming miraculous recoveries from various ailments.
It was discovered that these places often provide an accessible and affordable alternative to the sometimes inaccessible or expensive conventional healthcare system.
The blend of faith and the promise of divine intervention creates a potent mix that draws in individuals desperate for a solution.
Recently, there have been reported cases of faith-based organisations selling miracle water, oil, and soap, among others to their members as remedies for some of their chronic diseases.
One such is Prophet Jeremiah Fufeyin whose “miracle” water and soap recently generated widespread attention.
Fufeyin, leader of Christ MercyLand Delivery Ministries in Delta State, has been promoting these products, claiming they can heal barrenness and guarantee women will bear twins.
But the National Agency for Food and Drug Administration and Control came out to caution Nigerians against patronising the “miracle” water, soap, perfumes, and other products being advertised and sold by the prophet.
The agency’s director general, Prof Mojisola Adeyeye, said the products were not registered with NAFDAC.
Even after NAFDAC had warned Nigerians against using such unapproved remedies, findings by PUNCH Healthwise showed that many still rely on them as solutions to their medical challenges.
Contribute to high mortality
Experts, however, maintained that seeking miracle healing rather than going to hospitals worsens the ailment and leads to more complications.
Some of the medical experts lamented that by the time many of the cases are presented in the hospital, it had become worse and that only takes grace for them to be able to resolve.
According to them, the consequences of abandoning medical treatment for miracle healing water and other spiritual remedies are dire.
Experts lamented that patients were presenting late with advanced stages of their illnesses, making treatment more difficult and reducing their chances of survival.
In 2023, Nigeria was ranked the country with the 15th highest mortality rate in the world by WorldPopulationReview.com, a US-based organisation that specialises in the delivery of up-to-date global population data and demographics.
The data was arrived at after certain factors such as poor health care systems, war, conflicts, and gun deaths were considered. Other factors were demographic crisis (when the death rate was higher than the birth rate), HIV/AIDS, cancer, tuberculosis, stroke, poor nutrition, hunger, respiratory infections, and heart disease.
Each country’s death rate was expressed as the number of deaths per 1,000 people in a year.
Also, the World Health Organisation noted Nigeria has one of the highest mortality rates in the world.
The global health body said the country’s healthcare system was struggling to cope with the burden of infectious diseases, maternal mortality, and non-communicable diseases.
Reacting, some health experts said the rise of miracle healing water and other fake spiritual remedies was only making the country’s mortality rate worse.
They noted that patients were dying from treatable illnesses because they were seeking help from unqualified practitioners who were peddling false hope.
A senior registrar in the Department of Community Medicine and Primary Care at the Federal Medical Centre, Abeokuta, Ogun State, Dr. Solomon Olorunfemi called for a critical re-evaluation of how spirituality and medical care are balanced in Nigeria.
He argued that substituting spiritual practices for essential medical treatments contributes to higher mortality rates.
Olorunfemi emphasised that while spirituality was an integral part of many individuals’ lives, it should not replace necessary medical interventions.
Every individual is a spiritual being regardless of their religion, and spirituality has its place. However, when faced with a medical ailment, it is crucial to seek appropriate medical assistance,” he stated.
The physician expressed concern over a troubling trend where people often forego medical treatment in favour of spiritual solutions.
He cited cases where individuals with serious conditions, such as breast cancer, delay seeking medical help in favour of spiritual or traditional remedies, only to reach the hospital in late stages where treatment options are severely limited.
The impact of this ignorance is profound. We see patients whose conditions could have been managed effectively if detected early, but instead, they suffer unnecessarily due to delays in seeking medical care,” he lamented.
Another public health expert, Dr. Kunle Hassan lamented that the misuse of spiritual practices in place of medical treatment had resulted in tragic outcomes.
He noted, “It is heartbreaking to see patients die from illnesses that could have been treated. We are losing lives that could have been saved if patients had sought medical attention earlier.
It’s a crisis of faith. People are putting their trust in unproven remedies and neglecting medical treatment. We are seeing cases of high blood pressure, diabetes, and even cancer being neglected in favour of miracle cures.”
Loss of sight
Sulaiman lost his sight due to advanced glaucoma after opting for spiritual remedies over medical treatment.
Sulaiman, a 45-year-old resident of Oke-Ira in the Ogba area of Lagos State, began experiencing vision problems. Initially noticing a gradual decline in his eyesight, Sulaiman chose to seek help from his spiritual advisor, ‘alfa,’ rather than consulting a medical professional.
According to close friends and family, Sulaiman believed that his deteriorating vision was a spiritual issue that could be resolved through prayer, fasting, and other religious practices recommended by his alfa.
Despite repeated encouragement from loved ones to see a doctor, Sulaiman remained steadfast in his belief that his condition was spiritual and could be healed through faith.
By the time Sulaiman sought medical attention, it was too late. Doctors diagnosed him with advanced glaucoma, a condition that causes damage to the optic nerve and can lead to irreversible vision loss if not treated promptly.
Despite aggressive treatment attempts, the damage to Sulaiman’s vision was extensive, and he has been left with significant visual impairment.
My uncle was always a very spiritual man. He truly believed that his issues were more about faith than medicine. It wasn’t until his sight got so bad that he couldn’t ignore it any longer that he finally agreed to go to the hospital,” Sulaiman’s niece told PUNCH Healthwise.
Using miracle water rather than allowing C-section
Loveth lost her life during childbirth due to complications that arose when her husband refused to allow a cesarean section, opting instead to use an unproven method he believed would ensure a safe delivery.
Loveth, 34, was admitted to a private hospital in Lagos early this year, experiencing severe complications during labour.
The medical team quickly determined that a cesarean section was necessary to save both mother and child. However, according to hospital sources, Loveth’s husband, insisted on using a so-called “miracle water” remedy, which he believed would resolve the complications and facilitate a natural delivery.
“The patient was in a life-threatening situation. The decision to delay a C-section based on unverified remedies had dire consequences. Unfortunately, Loveth’s condition deteriorated rapidly, and despite our best efforts, we were unable to save her,” the hospital source told our correspondent.
Miracle should not take over medical treatment – Cleric
An Islamic Scholar, Abdulganiy Abdullah told PUNCH Healthwise that people need to understand when to seek spiritual guidance and when to rely on medical treatment.
According to the scholar, while spiritual guidance plays a vital role in many people’s lives, it should not replace or overshadow necessary medical intervention.
“In Islam, seeking medical help is not contrary to faith. People should be able to differentiate between when they need spiritual consultation and when they need to visit the hospital. Miracles and faith are essential aspects of our lives, but they should not replace essential medical care. The two should complement each other, not conflict.”
He cautioned against allowing spiritual practices to interfere with or delay medical treatment, which could be detrimental to a person’s well-being.
“Spiritual support is important, but it should complement, not substitute, medical care. We must ensure that individuals receive the appropriate treatment for their health conditions,” Abdullah asserted.
Selling miracle water dishonest ways to gain wealth
The Presiding Bishop of Perez Chapel International, Bishop Charles Agyinasare, has said pastors who stage miracles and also sell so-called miracle water and oils, do so for dishonest gain
Teaching Christians to shun dishonest wealth and get-rich-quick schemes, Bishop Agyinasare quoted 1 Peter 5:2, which says: ‘Feed the flock of God which is among you, taking the oversight thereof, not by constraint, but willingly; not for filthy lucre, but of a ready mind’, to warn pastors against gaining dishonestly.
The founder of Perez Chapel International insisted that the selling of miracle water and miracle oils to church members by pastors was a dishonest gain.
Similarly, he said pastors who fake miracles, do so for quick money.
For a pastor to arrange with people to pretend they are healed so that his church would be packed is for quick money; for a pastor to arrange with people during fundraising to pretend they are giving so others would give, is looking for quick money; for a pastor to say that one should bring their jewellery for sanctification and keep or take it, is going for quick money”, Bishop Agyinasare noted.
Reinforcing his point with Proverbs 13:11, which says: ‘Wealth not earned but won in haste or unjustly or from the production of things for vain or detrimental use such riches will dwindle, but he who gathers little by little will increase his riches’,
Experts call for improved health-seeking behaviour
Speaking on a way out, Olorunfemi emphasised the urgent need for improved health-seeking behaviour among Nigerians and greater government support to address the country’s rising mortality rates.
The public health physician believes that while government efforts to improve healthcare infrastructure and accessibility are crucial, individual behaviour also plays a significant role in health outcomes.
He stressed the importance of improving health-seeking behaviour among the populace.
Government can and should continue to enhance healthcare systems, make funds available, and strengthen the primary healthcare sector. However, individuals also need to take responsibility for their health by seeking medical care promptly and not relying solely on spiritual or alternative treatments,” he stressed.
He added that even at local levels, there are often affordable or free treatment options available in primary healthcare centres that individuals might not be aware of or choose to ignore due to misconceptions.
In response to these challenges, Dr. Olorunfemi called for increased awareness campaigns to educate the public about the importance of timely medical intervention and the complementary role of spirituality in health.
He also urged healthcare providers to work more closely with communities to bridge the gap between spiritual beliefs and medical practices.
By fostering better health-seeking behaviours and ensuring that people are aware of and utilise available medical resources, we can make significant strides in reducing mortality rates and improving overall health outcomes in Nigeria,” Olorunfemi concluded.
Corroborating him, another public health expert, Kunle Hassan said there is a need for government to regulate the activities of these miracle healers,
“Some of these miracle healers are very convincing. They use psychological manipulation to convince people that their remedies work. They prey on people’s desperation and vulnerability.
“We need to protect Nigerians from their false claims and unproven remedies,” he noted.
Hassan noted that people don’t trust the healthcare system, so they seek alternatives by visiting fake spiritual leaders.
He added, “But these alternatives were often unproven and untested, and in some cases, deadly. We need to do something to address this issue before it’s too late.
The government, healthcare professionals, and religious leaders needed to come together to find a solution, one that would promote medical awareness and education, while also addressing the cultural and religious factors driving the phenomenon.
“We need to find a way to blend the best of both worlds. We need to empower people with knowledge, Only then can they make informed decisions about their health.”
THE PUNCH

You may like
Interview
Exposed: Security agencies uncover, close up on officials behind smear campaign against CBN gov, Cardoso.
Published
2 weeks agoon
February 12, 2025
Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has come under attack and a smear campaign from detractors and vested interests opposed to the ongoing economic reforms spearheaded by his administration, investigations have revealed.
Findings indicate that these attacks are being orchestrated by disgruntled elements within and outside the apex bank, aiming to discredit the governor and reverse the progress made in stabilizing Nigeria’s economy.
Cardoso took over a deeply corrupt and dysfunctional system under the former administration of the apex bank. It would be recalled that findings by the Special Investigator of the Central Bank of Nigeria and Other Related Entities revealed that certain elements within the system had turned the CBN into their personal and family enterprise, allegedly siphoning off billions in stolen and embezzled funds.
The previous administration of the apex bank was said to have expended over ₦10 trillion in about six years on various interventions across different sectors of the economy, yet with little to no significant impact. The CBN had become a cesspool of corruption, necessitating urgent and radical reforms to restore its integrity and credibility.
Upon assuming office in September 2023, we gathered that Cardoso conducted a comprehensive review of the entire system and concluded that a complete cleanup was essential for his success. This prompted the CBN boss to implement bold and drastic internal reforms to enhance operational efficiency.
However, these reforms have not come without opposition.
Further investigations revealed that the recent attacks against the CBN Governor are part of a smear campaign orchestrated by certain disgruntled top officials and former officials of the CBN. Security sources confirmed that communication tracking has identified a serving director, two deputy directors, and two former directors as the masterminds behind the ongoing attacks. These individuals are allegedly working to tarnish the apex-bank governor’s reputation through blackmail and misinformation. We learned that security agencies are closely monitoring their activities, and they are expected to face legal consequences soon.
“Yes, we have received petitions regarding attempts to blackmail the governor of the CBN. A high-level investigation has commenced, and those found culpable shall face the full wrath of the law. We are collaborating with another sister agency on the matter,” a top DSS official, who is not authorized to comment on the matter, told our correspondent.
As part of the recent reforms, several redundant directors and senior officials accused of engaging in forex manipulations that weakened the naira over the years have been retired. The restructuring process included the voluntary retirement of many officials, who were well compensated for their years of service. This initiative was largely welcomed by many. Additionally, the bank transferred some staff from the Abuja headquarters to Lagos and other regional offices across the federation to optimize operations. However, these measures did not sit well with some individuals, as they effectively blocked corruption loopholes, leading to resistance from affected parties.
Notably, many of the officials who have exited the CBN were closely associated with the embattled former governor, Godwin Emefiele, who has been accused of running the apex-bank and the Nigerian economy aground. Emefiele is currently facing multiple charges, including fraud, money laundering, and abuse of office. Recall that the Department of State Services (DSS) had arrested several former deputy governors, directors, deputy directors and some other officials of the CBN linked to Emefiele over allegations of financial misconduct and irregular forex allocations.
Despite facing opposition, the policies and reforms initiated by the Cardoso-led CBN have begun to yield positive results. The reforms have restored confidence among both foreign and domestic investors, bolstering efforts to attain price stability.
The implementation of critical measures in the foreign exchange (forex) market has led to a strengthening of the naira against foreign currencies in both parallel and the Nigerian Autonomous Foreign Exchange Market (NAFEM). Additionally, foreign direct investments (FDIs) are on the rise, signaling increased investor confidence due to improved forex management and greater transparency in financial operations.
One of the key reforms under Cardoso’s leadership was the overhaul of the Bureau De Change (BDC) operations, which had become a conduit for illicit financial activities, including terrorism financing and money laundering. The BDC segment was being exploited by bank staff and even some CBN officials for arbitrage, distorting the forex market. As part of the clean-up, the CBN revoked 4,173 BDC licenses, effectively dismantling corrupt networks and restoring discipline in the sector.
The electronic FX matching platform and the Nigeria FX Code, introduced by Cardoso into the system, have also been pivotal in restoring transparency. As a result of these efforts, investor confidence has surged, foreign portfolio inflows have increased, and external reserves have risen to over $40 billion, the highest level in nearly three years.
The Cardoso-led CBN has also been able to unify the exchange rate system and eliminate multiple exchange rates, which had previously distorted market operations. In addition, the clearance of a $7 billion backlog in foreign exchange obligations addressed a critical bottleneck that had long hindered Nigeria’s economic growth.
In the banking sector, Cardoso has put up strategies to uplift the sector and increase stakeholders’ confidence. On March 26, 2024, the CBN announced a new minimum capital base for banks. Under the new policy, the minimum capital requirement for commercial banks with international authorization was raised to ₦500 billion, while banks with national authorization now require ₦200 billion, and those with regional authorization must have a minimum of ₦50 billion. With this new directive, the CBN aims to attract fresh capital inflows, strengthen banks, and enhance their capacity to drive economic growth. The policy is also expected to support President Bola Tinubu’s ambitious goal of achieving a Gross Domestic Product (GDP) of $1.0 trillion within the next seven years.
Furthermore, the CBN’s decision to cease deficit financing through its Ways and Means advances, a practice that had reached an unsustainable ₦22.7 trillion as of 2023, has marked a return to fiscal discipline and reinforced the Bank’s core mandate of ensuring price stability.
Under Cardoso’s leadership, Nigeria has positioned itself as a leader in digital payment innovation, surpassing many advanced economies and solidifying its status as a fintech hub in Africa. Homegrown unicorns have played a crucial role in expanding financial inclusion, further demonstrating the impact of the reforms.
The Witness.
Interview
FCMB Vs Cool Financial Services: FCMB’s Response Claims Cool Financial’s Lawsuit Lacks Merit
Published
2 weeks agoon
February 7, 2025
First City Monument Bank (FCMB) has responded to report on finance house Cool Financial Services’ lawsuit against it after a customer was able to withdraw a N150 million loan from a frozen bank account.
FCMB wrote a day after the report was published and three weeks after the initial request for comments was sent.
“FCMB believes the lawsuit filed by Cool Financial Services is without merit, as the bank had no contractual or fiduciary obligations to them,” the bank stated in an email on Thursday.
We had earlier reported that Cool Financial Services, a finance house based in Lagos State, lent Goewe and Sons Ltd., a supplier, a loan facility of N150 million in 2023 and the said loan was to be deposited in the borrower’s account domiciled at FCMB untouched.
At the expiration of the loan tenor, the lender was surprised to discover that the N150 million had been withdrawn from the account without its knowledge despite an earlier mandate stating that only the lender could authorise the withdrawal of that amount from the account.
Prior to the publication, FCMB had been requesting for one week after another week to investigate and respond to request for comments. We went to press on Wednesday, three weeks later.
A day after publication, however, FCMB responded with claims that the N150 million withdrawal was properly done and that it had no customer-banker relationship with the lender at the time of the loan transaction.
“To set the record straight, FCMB categorically states that it had no contractual relationship, express or implied, with Cool Financial Services concerning the N150 million. Claims of a fiduciary relationship or contractual obligations are without merit,” Adeola Adejokun, FCMB’s head of communications, wrote in an email on Thursday.
“Contrary to Cool Financial Services’ claims, they opened an account with FCMB on February 21, 2024. Therefore, no banker-customer relationship existed between FCMB and Cool Financial Services during their dispute with Goewe and Sons Ltd.”
The lender had earlier said, with documents in tow, that the borrower made it a ‘Category A’ signatory to the loan account to keep it informed of any activity on the account holding the N150 million. An email address of the lender’s representative requested to be added in addition to the new mandate instruction.
While admitting the fact stated above, FCMB said the dissipation of the loan sum from the account followed legal procedures.
“FCMB was not a party to any agreement that was said to have involved Cool Financial Services and Goewe and Sons Ltd. No arrangements existed that obligated FCMB to act on behalf of Cool Financial Services regarding the management of the disputed funds,” the bank’s Thursday email read.
“Goewe and Sons Ltd., an FCMB customer, received a standard loan facility secured by a lien on their deposit account, as detailed in the loan agreement dated July 24, 2023. While a representative from Cool Financial Services was listed as a co-signatory on one of Goewe and Sons Ltd.’s accounts, FCMB acted according to the legally provided account mandates.
“Subsequently, Goewe and Sons Ltd. changed the mandate following due process, and FCMB was under no obligation to seek authorisation from Cool Financial Services for this change.”
Similar to the borrower’s response to FIJ, the bank stated the loan had been repaid.
“Goewe and Sons Nigeria Limited and Cool Financial Services Limited had a financial dispute that involved law enforcement agencies. On January 19, 2024, Goewe paid Cool Financial Services Limited N150 million via bank drafts through its legal counsel,” FCMB wrote.
“FCMB conducted all transactions with Goewe and Sons Ltd. in good faith, adhering strictly to banking regulations and internal policies. The bank acted neither negligently nor breached any duty towards Cool Financial Services.
“FCMB believes the lawsuit filed by Cool Financial Services is without merit, as the bank had no contractual or fiduciary obligations to them. Goewe and Sons Ltd. has already repaid Cool Financial Services.”
The bank said that it had filed its defence to the lender’s statement of claim in court, adding that the case came up for mention on Wednesday and the court subsequently adjourned it until March 18.
Source: FIJ
Interview
Cool Financial Sues FCMB for Allowing Borrower to Withdraw N150m From Frozen Account
Published
3 weeks agoon
February 5, 2025
Cool Financial Services, a Lagos State-based finance house, has sued First City Monument Bank (FCMB) for allowing Goewe and Sons Ltd., one of its borrowers, to withdraw a N150 million loan sum from an account with an active freezing instruction.
Goewe and Sons Ltd. is a merchandise company owned by Ewere Godwin Orobosa. In July 2023, the company first approached the finance house for a N100 million loan at a 3.5% interest rate for a duration of 30 days.
Again, in September 2023, the company obtained an additional loan of N50 million at an interest rate of 1.5% for a month, bringing the entire loan to N150 million.
The borrower intended to pursue a contract and needed to have the said amount in its bank account, but the loan was not to be used to execute the potential contract.
Both Goewe and Sons Ltd. and Cool Financial Services then instructed FCMB to freeze the loan account so that the loan sum could remain untouched for the period of the transaction, according to a loan agreement dated September 18, 2023.
The borrower had earlier written to the bank to alter its account mandate through a board resolution dated September 15, 2023. The borrower appointed Ewere-Egharevba Orobosa, representing the borrower, and Roseline Anibueze, representing the lender, as ‘Category A’ signatories to the account.
The directive further specifically stated that the representative of the lender shall have the power to authorise any withdrawal below N150 million from the account while any withdrawal exceeding that amount shall be jointly authorised by the two signatories.
“Those measures were put in place to guarantee compliance with the terms and conditions of the loan facility,” Oluwafemi Adediran, head of the legal unit at the finance house, told FIJ on Wednesday.
After the loan duration expired, the lender wanted to withdraw it. So, on October 23, 2023, the finance house presented a transfer cheque at the Chevron branch of FCMB in Lagos confident that the money was intact. But the cheque was dishonoured and the bank revealed that the borrower had already withdrawn the loan.
“Upon our investigations and findings, we became aware albeit shocked that you disregarded the lien on the account and processed a loan of N150,000,000 (one hundred and fifty million naira) on the back of the restricted facility meant only as proof of funds. What is more, we are alarmed not only by this act but by the temerity and obviously premeditated criminal falsification of the signatures of the representatives of our client as signatory ‘A’ before the consummation of the unauthorised mindless transaction,” Justice John, a legal practitioner, wrote to a business manager at Sanusi Fafunwa Branch of FCMB and the FCMB managing director on behalf of the lender on September 26, 2023 and October 26 respectively.
On October 25, 2023, the lender visited the Sanusi Fafunwa Branch. There, Chukwuma Chukwuka and Isiaq Babatunde, both officials of the bank, appealed for a cure period of 72 hours to remedy the situation. An additional 48 hours was given to the bank to sort out the issue internally, according to a November 2023 court filing signed by Anibueze.
Those cure periods were not adhered to. On October 31, FCMB through Tosin Talabi and Akin Akintola, both legal counsel and head of litigation for the bank, said it had commenced an investigation into the issue.
“In accordance with our internal procedure, we have commenced investigations into the issues raised in your letter under reference and shall revert to you shortly with the bank’s position once the investigation (sic) is concluded,” the legal counsel wrote.
“At the time we went to the bank to verify how the money was withdrawn, we found out that the freezing instruction was still active on the account. We observed that our director’s signature was forged to make the withdrawal. The question the bank has not answered is, ‘How was it possible to withdraw money from an account with an active no-withdraw order?’”
More than a year after the letter referenced above, the bank was yet to reveal the findings of its investigation.
SEEKING REDRESS THROUGH COURT
In November 2023, the lender filed a suit marked FHC/2377/2023 before a Federal High Court in Lagos seeking to recover losses it had incurred as a result of what it considered “a criminal conspiracy”.
Sued in the lawsuit were FCMB as the first defendant, the borrower as the second defendant and the Central Bank of Nigeria (CBN), FCMB’s regulator, as the third defendant.
“A declaration that the action of the 1st defendant amounts to breach of fiduciary duties owed to the plaintiff,” the first leg of the relief read.
“An order directing the 1st defendant to immediately pay the plaintiff its capital in the sum of N150,000,000 (One Hundred and Fifty Million Naira Only) with (an) interest rate of 21% per annum or at the prevailing Central Bank of Nigeria’s rate from October 23, 2023, when the plaintiff’s transfer request was dishonoured by the 1st defendant despite the plaintiff’s account being funded; and without any satisfactory explanation by the 1st defendant to the plaintiff.
“General damages in the sum of N250,000,000 (Two Hundred and Fifty Million Naira Only) against the 1st defendant for the economic loss, embarrassment and financial exposures suffered by the plaintiff as a result of the devastating action of the 1st defendant, bearing in mind that the plaintiff is in the business of loans and SMS financing.
“An order of this honourable court directing the 1st defendant to pay interest on the judgment sums at the rate of 21% per annum or at the prevailing Central Bank of Nigeria’s rate, from the commencement of this suit till the date of judgment, and 14% per annum from the delivery of judgment till liquidation of the entire judgment sum to the plaintiff.
“An order of this honourable court directing the 3rd defendant to enforce compliance of the 1st defendant by drawing from the deposits of the 1st defendant in its care to settle all monetary sums and liabilities thereof by the 1st defendant herein in the event that the 1st defendant is unable to pay same.
“The cost of this action in the sum of N5,000,000 (Five Million Naira).”
The court has not fixed a hearing date for the case. At press time, FIJ learnt that FCMB had not filed any response to the lender’s filings.
FCMB had not responded to a request for comments at press time. On January 15, Rafiu Muhammed, a corporate affairs and media management officer at the bank, acknowledged FIJ’s email on the phone and promised that the bank would investigate and respond soon.
When asked to be specific when the bank would respond, Muhammed said, “I don’t want to give you an unrealistic time. But we will investigate and respond very soon.”
FIJ sent him a reminder on January 24 and Muhammed responded, “Give us till next week.”
FIJ called him again on Wednesday and Muhammed requested one more week. “We will try to expedite our investigation. Give us till next week,” he repeated.
THE BORROWER’S RESPONSE
In the court documents, the lender accused the borrower of falsifying Anibueze’s signature and conspiring with the bank to withdraw the money.
On January 15, FIJ contacted Godwin Ewere, the director of the borrower, for his comments. He denied falsifying any signature, stating that he had defrayed the loan and was no longer indebted to the lender.
“The loan obtained from Cool Financial Services has been fully paid and liquidated. We no longer owe Cool Financial Services. No signature was forged whatsoever,” Ewere said, adding that he also wanted to sue FCMB.
“I don’t want to say anything, because I want to sue FCMB.
“I am ready to meet them in court. I still see my name on (the) credit bureau that I am owing them [the lender]. They are saying over N20 million, which I don’t understand.”
Ewere showed FIJ a harmonised document containing a series of cheques he issued in the name of the lender.
When FIJ relayed Ewere’s response to the lender’s head of legal unit, he said it was a lie. He maintained that the borrower defaulted in repaying the loan and also withdrew the money illegally.
Source: FIJ

Adeleke swears in new Osun LG chairs, urges good governance

Natasha’s reason for her removal as committee chair misleading- Senator

Alcohol, tobacco record highest inflation rate

EXPOSED: HOW SACKED NNPC BOSS BILLY AGHA SPENT OVER N100 MILLION ON HIS GIRLFRIEND’S ARABIAN BIRTHDAY PARTY

Just In: Covid-19: Socialite Bolu Akin-Olugbade passed on at Paelon Covid Centre, Ikeja.

Stanbic IBTC In Trouble As Supreme Court Orders Bank To Pay Customer ₦2.5Billion

Trending
-
Society7 years ago
EXPOSED: HOW SACKED NNPC BOSS BILLY AGHA SPENT OVER N100 MILLION ON HIS GIRLFRIEND’S ARABIAN BIRTHDAY PARTY
-
Society4 years ago
Just In: Covid-19: Socialite Bolu Akin-Olugbade passed on at Paelon Covid Centre, Ikeja.
-
News and Report6 years ago
Stanbic IBTC In Trouble As Supreme Court Orders Bank To Pay Customer ₦2.5Billion
-
News and Report7 years ago
Delta 2019: Gov. Okowa’s ambition cripples Asaba Airport upgrade…. • As ULO Construction Company pulls out • Okowa allegedly diverts N1.5Bn budgeted for the project
-
News and Report7 years ago
More Queen’s College pupils take ill…• Parents call for prosecution of ex-principal
-
Society4 years ago
IMO PCC COMMISSIONER, WILLY AMADI IN VIRAL THREESOME SEX VIDEO SCANDAL
-
News and Report6 years ago
GTBank Releases 2018 Full Year Audited Results …….. Reports Profit before Tax of ₦215.6 Billion
-
News and Report7 years ago
GTBank Releases H1 2018 Audited Results, Reports Profit Before Tax Of ₦109.6 Billion