An oil services company, Zumax Nigeria Limited, has dragged the Central Bank of Nigeria to the Federal High Court in Lagos, demanding N4.1 billion in damages for alleged gross negligence and failure to supervise commercial banks properly.
At a hearing before Justice Akintoye Aluko, the CBN filed a preliminary objection, arguing that the court lacks jurisdiction to hear the case.
CBN’s lawyer, Adeleke Agboola, insisted that the preliminary objection should be addressed before any other application.
“This preliminary objection has priority over any other applications. The plaintiff’s application is not meritorious,” Agboola argued.
However, Zumax’s counsel, Wole Olanipekun, disagreed, urging the court to hear all applications together.
“It is the court that can decide which application should be heard first. It is no longer the law that a preliminary objection must be heard first,” Olanipekun said.
Justice Aluko adjourned the case to April 22, 2025, to rule on which application to hear first.
Zumax alleged that CBN failed in its duty to supervise banks and protect businesses. It claimed that First City Monument Bank wrongfully placed it under receivership for 20 years, leading to the collapse of its business.
The company maintained that it had paid over N547 million to FCMB and was never in debt, yet the bank inflated its liabilities and appointed receivers in 2002.
“Rather than addressing the dispute, FCMB appointed receivers to take over Zumax’s operations,” the company said.
Zumax also accused the CBN of ignoring multiple petitions requesting intervention in the matter.
Zumax pointed out that in 2021, the Court of Appeal ruled that the judgment used to justify the receivership was fraudulent and should be set aside.
The company is now seeking:
- $41 million in special damages for lost income and asset depreciation.
- N2 billion in general damages.
- N2 billion in exemplary damages.
- N100 million for legal costs.
Zumax had an account with the defunct IMB International Bank, which later merged with FCMB. It obtained an overdraft facility of N50 million, which was increased to N200 million in 1998.
However, FCMB later claimed that Zumax owed N465.6 million by December 2002, a figure the company strongly disputed.
The receivership lasted from 2002 to 2022, causing financial losses and loss of oil contracts with companies like Chevron.
Zumax insists that a 2007 CBN report confirmed that it had settled its debts, proving it should never have been placed under receivership.
The case continues at the Federal High Court in Lagos.
