By Temilola Atolagbe
LAGOS — A Federal High Court sitting in Lagos has adjourned till April 22, 2025, to rule on which application to hear first in a N4.1 billion allege negligence suit by Zumax Nigeria Limited, an oil services company, against Central Bank of Nigeria, CBN.
The matter is before Justice Akintoye Aluko.
The claimant, Zumax, is contending in the suit that the CBN failed in its statutory duty to supervise banks and protect customers’ interests.
However, CBN has filed a preliminary objection challenging the court’s jurisdiction to hear the matter.
Zumax maintained that it had paid over N547 million to a commercial bank, proving it was never in debt to the bank, yet it was placed in receivership, and that the CBN failed to intervene despite being petitioned.
The company claimed it was unable to operate for two decades due to the receivership based on what it described as an entirely fabricated debt.
The claimant is praying the court to declare that the CBN was negligent in its duty to regulate Nigerian banks.
It is also asking for special damages amounting to $41million including lost income and asset depreciation, general damages of N2 billion exemplary damages of N2 billion and legal costs amounting to N100 million.
The claimant, a player in the oil services industry, was regularly engaged by oil majors like Shell Explorations Limited and Chevron Limited, and from which jobs it earned regular substantial incomes in dollars.
At the hearing on March 24, 2025, Wole Olanipekun, SAN, had told the court that the claimant had an application dated February 20, 2025, asking the court to hear the application.
He stated that the priority of which application should be heard first should not arise as the claimant has not said CBN’s preliminary objection can’t be heard.
But CBN’s counsel Adeleke Agboola, SAN, told the court that “This preliminary objection has priority over any other applications. The plaintiff’s application is not meritorious.”
Justice Aluko adjourned till April 22, 2025, for ruling on which application to hear first.
According to court documents, Zumax had and maintained in its name an account (with account no: 0101020000026) with the defunct IMB International Bank PLC which by/under several mergers and consolidations of banks ultimately fused into the much larger banking institution.
The claimant had obtained a facility from IMB International Bank’s successor, an overdraft facility of N50 million, which was later increased to N200 million in or during the first half of 1998.
However, the bank allegedly inflated the company’s debt and, by December 6, 2002, claimed it had risen to N465.6 million, which was vehemently disputed by Zumax.
“Rather than addressing the dispute, the bank appointed receivers to take over Zumax’s operations.
“The receivership, which lasted from December 2002 until 2022, led to severe financial losses, including the collapse of Zumax’s business and the loss of contracts without multinational oil companies such as Chevron,” the claimant said.
The company claimed it was unable to operate for two decades due to the receivership, which was based on what it describes as an entirely fabricated debt.
Zumax further alleged that despite repeated petitions, the CBN failed to investigate the bank’s actions or intervene to prevent the alleged financial mismanagement.
The company maintained that a 2007 CBN report confirmed that it had paid over N547 million proving it was never in debt to the bank.
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