Nigeria: Court orders Utmost Wealth Solutions to refund $16,889 to investor over “unfair” policy clause

By Zuleihat Owuiye, Mamos Nigeria

A Lagos High Court has ruled that Utmost Wealth Solutions must refund $16,889.75 to Mrs. Clara Chinenye Nwachukwu, citing a policy clause that allowed the company to apply 100% of her premium payments to administrative charges as “manifestly unjust, unfair, and one-sided”.

Nwachukwu had invested $18,000 in a 20-year “Vision Plan” with Utmost Wealth Solutions, paying $1,000 monthly premiums for 18 months. When she stopped payments due to job loss, the company claimed the policy had lapsed with no value, having applied all contributions to administration fees.

The court found the clause inequitable under Nigeria’s consumer protection law, invalidating it and ordering Utmost Wealth Solutions to refund Nwachukwu’s investment, minus reasonable administrative fees.

The ruling may impact long-term investment products in Nigeria, particularly those with front-loaded fee structures.