Steel Group Standoff: UBA Seeks Jail for Nine WEMPCO-Linked Figures Over KSh 5.82B ($44.92M) DebtSteel Group Standoff: UBA Seeks Jail for Nine WEMPCO-Linked Figures Over KSh 5.82B ($44.92M) Debt
Key Highlights
- Nigeria's United Bank for Africa has escalated a months-long debt fight with one of Lagos's oldest industrial families.
- The bank alleges a court-appointed receiver was forced out of a steel plant in Ogun State after bailiffs handed it over.
- Funds have already been frozen across 27 banks and fintechs, and the accused have yet to answer in court.
United Bank for Africa (UBA) has asked a Lagos court to jail nine people linked to the Western Metal Products Company (WEMPCO) group, escalating its bid to recover N61.45 billion, about KSh 5.82B ($44.92M), that it says the steel and manufacturing group owes.
The application, a committal notice filed at the Federal High Court and published in a Lagos newspaper on 27 October 2026 under a court order permitting service by advertisement, accuses the respondents of deliberately disobeying an earlier court order. Details of the filing were reported by Nairametrics
The case matters beyond Nigeria because it tests how far African lenders can go to enforce security over industrial assets when borrowers resist receivership, a question Kenyan banks also face with distressed manufacturers.
Receiver allegedly forced out of Ogun factory
On 2 April, Justice Akintayo Aluko froze funds up to the full claimed sum across 27 banks and fintechs, including Moniepoint, OPay and Kuda, and appointed Romeo Ese Michael as receiver-manager over WEMPCO assets not already pledged under a 2019 credit agreement. His powers also cover two Wärtsilä power generators.
In an affidavit, UBA alleges that after bailiffs handed the Magboro and Ibafo plant in Ogun State to the receiver, the respondents brought in thugs, broke the receiver's locks and threatened his staff. The bank says they then continued to run the business and divert its funds. These allegations have not been tested in court, and WEMPCO's response was not immediately available.
UBA is asking the court to commit the respondents to prison until they comply with the April order.
Tung family members among the respondents
Several members of the Tung family feature among the nine, including Robert Tung, Paul Shui Po Tung and Lewis Shui Noor Tung, alongside Taiwo Alli and five others. All nine share a single address on Wempco Road in the Ogba district of Ikeja.
Alli runs Nigerian Enamelware Company, one of 17 companies named as defendants, and Robert Tung sits on its board. The other defendants include Lagos Oriental Hotel, United Rolling Mills, Wempco Steel Mill Company and Prime Nigeria Tiles Company. The group traces its roots to K.F. Tung, who came to Nigeria in 1967.
Talks stalled after a missed inspection
The two sides did try to settle. On 22 June, WEMPCO's lawyers at SimmonsCooper Partners, led by Dapo Akinosun SAN, sought an urgent meeting and proposed an interim standstill, a joint reconciliation of accounts and a repayment framework. UBA's counsel, Temilolu Adamolekun SAN, agreed, while questioning how a party allegedly using force could seek dialogue.
The parties met at UBA's Marina head office in Lagos on 26 June. A joint inspection of the Magboro site was then set for 2 July, but WEMPCO and its lawyers did not attend, according to the bank, and it says they have been unresponsive since.
A wider recovery push by UBA
The WEMPCO action follows a judgment UBA won against Stallion Group earlier in October, in which the same receiver was used. The bank, chaired by billionaire Tony Elumelu, is also positioned as a potential financier for regional infrastructure, as Mwenendo earlier reported on Elumelu's West African pipeline.
UBA's shares rose 6.83% to N43.00 on the Nigerian Exchange on 28 October, bucking a wider bank sell-off. Mwenendo earlier reported how Nigerian stocks lost KSh 68.06B that day. Naira figures are converted at about N1,368 to the US dollar and KSh 129.50 to the dollar.
In Summary
- Who is involved?
- United Bank for Africa and nine people linked to the WEMPCO group, plus 17 defendant companies including Nigerian Enamelware and United Rolling Mills.
- What is UBA asking for?
- That the nine respondents be jailed until they comply with an April court order, as part of its bid to recover N61.45 billion (about KSh 5.82B or $44.92M).
- When was the committal notice published?
- On 27 October 2026, under a court order allowing service by newspaper advertisement.
- Where is the disputed plant?
- At Magboro and Ibafo in Ogun State, Nigeria, with the case before the Federal High Court in Lagos.
- Why has UBA escalated?
- It alleges the respondents forced out a court-appointed receiver, kept running the business and missed a July inspection. The claims are untested in court.
- How has the court acted so far?
- On 2 April it froze funds across 27 banks and fintechs and appointed Romeo Ese Michael as receiver-manager.