The High Court of Lagos State has directed Utmost Wealth Solutions to refund $16,889.75 to Mrs. Clara Chinenye Nwachukwu after ruling that a key clause in its investment policy was “manifestly unjust, unfair and one-sided.”
Delivering judgment on January 26, 2026, Justice K. A. Jose held that the policy term allowing the company to apply 100 percent of a customer’s premiums during the initial period to administrative charges was inequitable and violated consumer protection laws.
Mrs. Nwachukwu had invested $18,000 in the company’s “Vision Plan,” paying $1,000 monthly premiums for 18 months from August 2014. She later discovered that her contributions had been fully absorbed by administrative fees after the policy lapsed in 2019. A valuation statement in June 2016 had shown her plan had grown to $20,106.84, including $2,106.84 in accrued interest.
The court examined Clause 5.3 of the policy under Section 127 of the Federal Competition and Consumer Protection Act, which prohibits excessively one-sided contractual terms. Justice Jose ruled that the insurer’s retention of the full investment and interest was unjust, while affirming that reasonable administrative fees were allowed. Applying a 2 percent annual charge over eight years, the court calculated permissible fees at $3,217.09.
The ruling dismissed claims against Profinad Nigeria Limited and its managing director, reaffirming that the contract existed solely between Mrs. Nwachukwu and Utmost Wealth Solutions, formerly Generali International Limited. The court also awarded N2 million in legal costs but declined the N10 million general damages claim, stating damages must be limited to foreseeable losses.
Legal experts say the decision could reshape long-term investment policies in Nigeria, particularly those with front-loaded fee structures that risk eroding investor capital in the early years of subscription.
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