Oil firm sues CBN N4.1bn over alleged fraudulent receivership

• Published On: 27 March 2025 at 06:06

Zumax Nigeria Limited has filed an N4.1 billion lawsuit against the Central Bank of Nigeria in the Federal High Court in Lagos, accusing the CBN of gross negligence and complicity in a fraudulent receivership.

The company claims the CBN failed to fulfil its duty to supervise banks and protect customer interests, resulting in significant financial losses.

During the hearing before Justice Akintoye Aluko, Chief Wole Olanipekun (SAN), representing Zumax Nigeria Limited, informed the court that the plaintiff had filed an application on February 20, 2025, and requested that the court hear it.

Zumax, a prominent player in the oil services sector, frequently worked with major corporations such as Shell and Chevron, earning substantial US dollars from these engagements.

Olanipekun also requested that the court consolidate and hear both Zumax's application and the CBN's preliminary objection together.

He emphasised that there was no problem with the hearing order because Zumax had not objected to the court first hearing the CBN's preliminary objection.

However, CBN counsel Adeleke Agboola (SAN) insisted that the defendant's preliminary objection, which questions the court's jurisdiction, be heard first.

He claimed that CBN filed its notice of preliminary objection on time, and that the plaintiff had already responded to it.

Agboola stated, "This preliminary objection takes precedence over any other applications." The plaintiff's application is not meritorious.

"There is no suggestion from the claimant that we did not file on time. We claim that this court lacks jurisdiction to hear this case; therefore, I respectfully request that you allow us to argue it.

"There is no doubt that preliminary objections take precedence. It states that it must be heard first and that our objection is extremely serious. We have strictly followed the rules.

"We urge this court to hear the preliminary objection and dismiss the Plaintiff's application."

Olanipekun responded, "My learnt friend stated that the application we filed is not meritorious." It is the court that can make any pronouncement on that.

"My Lord, even when we talk about being tidy, we do not mean that the court should not hear his preliminary objection. He is now claiming that our application should not be heard.

"The court must decide whether the objection or the Plaintiff's application dated February 20, 2025, should be heard first.

"It is no longer the law; in fact, it has never been the law that when a preliminary objection is raised, the court will say, 'Let's take it first. We urge your Lordship to consider our application, which has not been challenged by the defendant."

After hearing both parties' submissions, Justice Aluko adjourned the case until April 22, 2025, to rule on which application would be heard first.

According to court documents, Zumax had an account (No. 0101020000026) with the now-defunct IMB International Bank PLC, which later merged into First City Monument Bank.

The plaintiff first obtained a N50 million overdraft facility from IMB, which was later increased to N200 million in 1998.

Zumax, on the other hand, claims that the bank fraudulently inflated its debt, and that by December 6, 2002, the bank claimed the debt had increased to N465.6 million—a claim Zumax strongly refuted.