Nigerian-Owned Caribbean Bank Sues Zambia Over $40m Investment Dispute

A Nigerian-owned Caribbean financial institution has filed a $40 million lawsuit against the Zambian government over the liquidation of Investrust Bank, in a case that could have significant implications for investor confidence in one of Africa’s emerging investment destinations.

Bank of Nevis International (BONI), owned by Nigerian businessman and oil trader Michael Prest, is seeking damages after alleging that Zambian authorities failed to recognise its 24.8 per cent shareholding in Investrust Bank before the lender was placed into liquidation in 2024.

The legal action, filed on July 22, names the Bank of Zambia, the country’s Minister of Finance and the Attorney General as respondents. The matter is expected to be heard in 2027.

According to court documents, BONI acquired its stake in Investrust Bank between March 2021 and November 2022 through a licensed broker on the Lusaka Securities Exchange, making it the bank’s second-largest shareholder.

The financial institution claims it spent nearly two years seeking formal recognition of its ownership from regulators but was never granted approval.

BONI argued that the refusal deprived it of its rights as a shareholder, including the ability to appoint directors, participate in corporate governance and contribute to efforts to recapitalise the struggling bank before it was declared insolvent.

The bank is seeking $40 million in compensation, equivalent to approximately ₦61.4 billion, for losses allegedly arising from the liquidation process.

The dispute has drawn attention beyond the parties involved, with analysts suggesting it could influence perceptions of regulatory certainty and investor protection in Zambia at a time when African economies are competing to attract greater foreign investment.

The Bank of Zambia has maintained that Investrust Bank was insolvent and insists the liquidation process is being conducted in accordance with the country’s banking laws and regulatory framework.

The outcome of the case is expected to be closely watched by international investors, financial institutions and policymakers across the continent as it may shape future confidence in regulatory safeguards for cross-border investments in Africa.