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₦9bn Debt Dispute: Petrocam Accuses Zenith Bank of Concealment, Seeks Lifting of Account Freeze as Court Reserves Ruling

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Justice Chukwujekwu Aneke of the Federal High Court, Ikoyi, Lagos, has fixed April 30, 2026, to rule on an application by Petrocam Trading Nigeria Ltd seeking to vacate an interim order freezing its bank accounts over an alleged ₦9.05 billion debt claimed by Zenith Bank.

The court had earlier granted the freezing order in Suit No: FHC/L/CS/393/2026 following an ex parte application by Zenith Bank, aimed at preserving funds allegedly owed by Petrocam and its principal, Patrick Ilo, as of May 31, 2025.

At the resumed hearing on Thursday, Petrocam’s counsel, Gboyega Oyewole (SAN), alongside S. Isaac John (SAN), leading Kolawole Salami and Ademola Adefolaju, urged the court to discharge the interim injunction granted on March 3, 2026.

He argued that the order was obtained through the suppression of material facts and has inflicted severe financial hardship on the company.

According to him, Petrocam is a viable business with extensive operations nationwide, and the freezing of its accounts has crippled its day-to-day activities without any real risk of dissipation of assets.

In an affidavit deposed to by the company’s Head of Trade, Sunmola Omolara, Petrocam maintained that it is not indebted to Zenith Bank, insisting that all obligations under a 2014 import finance facility have been fully liquidated.

The defendants stated that over ₦7.4 billion in petroleum sales proceeds were remitted directly to the bank.

These payments, they said, are supported by bank statements and domiciliation records involving major industry players such as Total Nigeria Plc and Oando Plc.

They further explained that the facility was structured to be repaid through petroleum sales proceeds and Sovereign Debt Notes issued under the Federal Government’s fuel subsidy regime.

Petrocam attributed any temporary financing gaps to delays by the Federal Government in servicing the Sovereign Debt Notes, adding that the obligations were eventually settled between 2019 and 2020.

The company claimed that interest on the short-term facility was cancelled, with payments made through the Debt Management Office.

The defendants stressed that Zenith Bank was fully aware of and actively participated in the subsidy-backed financing arrangement.

A central plank of Petrocam’s case is the allegation that Zenith Bank failed to comply with a directive of the Central Bank of Nigeria mandating a 100 per cent interest waiver on subsidy-related debts.

The company argued that while other banks complied with the directive, Zenith allegedly continued to impose interest charges on the facility up to 2023 and 2024.

Petrocam further claimed that regulatory panels had directed the bank to refund excess charges, but that the bank failed to comply.

In support of its position, the company tendered a Letter of Non-Indebtedness dated December 16, 2024, allegedly issued by Zenith Bank.

The document, according to the defendants, confirmed that Petrocam’s account was in credit and that it was not indebted to the bank, except for a contingent liability tied to a bank guarantee.

Relying on this letter, the defendants argued that Zenith Bank’s subsequent claim of a ₦9 billion debt is contradictory and undermines the legal basis for the freezing order.

Petrocam also challenged the procedure leading to the suit, contending that no valid demand notice was issued prior to the commencement of the action.

It described the alleged demand letter, which surfaced in June 2025 and was reportedly sent to the wrong address, as an afterthought.

The company maintained that its banking relationship with Zenith Bank had remained cordial over the years, with no prior indication of any outstanding indebtedness.

Beyond disputing the debt, the defendants accused the bank of negligence in managing the transaction.

They alleged that Zenith failed to secure the foreign exchange required to liquidate letters of credit, continued to impose charges despite regulatory interventions, and did not properly account for funds remitted under the facility.

These actions, they argued, significantly contributed to the dispute.

Patrick Ilo, the second defendant, is also seeking to have his name struck out of the suit.

He contended that he neither provided a personal guarantee nor assumed personal liability for the facility, maintaining that he acted solely as an agent of Petrocam.

He also denied allegations of fraud or diversion of funds, insisting that all inflows were domiciled with Zenith Bank, making any diversion impossible.

In their written address, the defendants argued that Zenith Bank failed to satisfy the legal conditions for the grant of an interlocutory injunction.

They maintained that no serious issue exists for trial, particularly in light of the bank’s alleged letter confirming non-indebtedness.

They further argued that the balance of convenience tilts in favour of Petrocam, which faces operational paralysis if the freezing order remains, whereas the bank can be compensated in damages if it ultimately succeeds.

The defendants also contended that the injunction was obtained in bad faith, without full disclosure of material facts, and without an undertaking as to damages.

Opposing the application, counsel to Zenith Bank, Chief Ajibola Aribisala (SAN), urged the court to dismiss Petrocam’s application and retain the freezing order.

Aribisala argued that the bank’s claim is founded on a subsisting indebtedness, maintaining that the issues raised by the defendants are matters for trial and do not justify setting aside the interim order at this stage.

He further submitted that the preservation order was necessary to protect the res in dispute, warning that lifting the restriction on the accounts could jeopardise the bank’s chances of recovering the alleged debt if judgment is eventually entered in its favour.

After taking arguments from both parties, Justice Aneke adjourned the matter to April 30, 2026, for ruling.

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Judiciary

Anxiety Mounts Over Sudden Recall of Land Dispute Case File by Lagos CJ

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A sudden move by the Lagos State Chief Judge, Justice Kazeem Alogba, to withdraw and potentially transfer a land dispute case without notifying the claimants or their lawyers has sparked controversy and raised concerns about whether justice will be served.

The incident unfolded at the Ikeja High Court on Wednesday, April 15, during proceedings before Justice Akin Savage of the Lands Division. In an unusual development, the judge informed the court that the Chief Judge had requested the case file, offering no explanation for the action.

The case, between Nasco Town Limited (claimant) and Mr. Abiodun Ariori, the Chief Michael Mojisola Cole family, and others (defendants), was the first scheduled for hearing that day. It involved a Senior Advocate of Nigeria, Chief Anthony George-Ikoli, a former Attorney General of Bayelsa State. As the court prepared to begin, the registrar approached the bench and whispered to the judge. Justice Savage then announced that the file had been recalled by the Chief Judge and advised counsel to await further communication on whether it would be returned or reassigned.

A visibly puzzled Chief George-Ikoli sought clarification, prompting the following exchange:

Judge: Call the case of the learned silk.
Registrar: (approaches and whispers to the judge)
Judge: The Chief Judge has called for the file, and it is with him.
Lawyer: May we know the reason the Chief Judge called for the file?
Judge: I do not know, as no reason was given. When or if the file comes back, we shall inform you.

Lawyer: Sir, in the spirit of fairness, when a file is called back from a court by the Chief Judge, the parties ought to be informed and told the reasons.
Judge: The Chief Judge has the power to call for any file at any time. I do not have the authority to question or query his actions. When the file comes back, we shall inform you. There is no file to work with.

(The judge then directed the registrar to call the next case.)

Disturbed by the development, Chief George-Ikoli subsequently petitioned the Chief Judge, seeking clarification. The petition, signed by Ms. Ayotunde Shabi of his chambers, noted that the case—filed in 2020—has yet to progress significantly beyond the pre-trial stage. It expressed concern that the sudden withdrawal of the file, without explanation, had heightened the anxiety of the claimants and raised questions about the transparency and impartiality of the judicial process.

The petition also referenced an affidavit deposed to by Chief George-Ikoli on April 16, detailing the events in court the previous day. Counsel urged the Chief Judge to clarify the purpose of the request, stressing that such information is necessary to properly advise and reassure their clients, especially given the indefinite adjournment of the case.

Separately, Nasco Town Limited also petitioned the Chief Judge, alleging possible undue external influence.

In a letter signed by its Executive Coordinator, Dr. Mustapha Sulaiman, the company expressed concern that while the defendants appeared to have prior knowledge of the file’s withdrawal, Nasco, the claimant, was neither notified nor given an opportunity to respond to any complaint or petition that may have prompted the action.

Nasco outlined its long-standing possession of the land, stating that it has been in peaceful and uninterrupted possession since 1978 under a lease granted by the Federal Government. The company said it had carried out extensive development on the property, including land reclamation, construction, and the granting of a sublease to Michelin Tyres Limited in 1981. It added that the land was later designated a Free Trade Zone following its application, and that development of its industrial section was underway before the dispute arose.

According to the company, this possession was disrupted in 2018 when Mr. Ariori, along with members of the family of the late Chief Cole, allegedly invaded the land with armed policemen and thugs, claiming to enforce a 1997 consent judgment in favour of the Chief Cole family, to which Nasco was not a party.

Nasco further stated that investigations showed the consent judgment had already been executed on a different parcel of land before the Chief’s demise—a position it said was supported by official records and even acknowledged by one of the families involved. It also noted that the late Chief Cole neither claimed nor visited the disputed land during his lifetime.

The company said its initial legal action in 2018 was handled by Justice Olaide Olayinka but was delayed due to difficulties in serving the defendants, who allegedly evaded service, until the judge retired. In the current suit, filed in 2020, the defendants allegedly continued to evade service until the court granted an order for substituted service four years later. Despite this, the matter has been plagued by repeated adjournments and procedural delays allegedly caused by the defendants.

Against this backdrop, Nasco described the sudden withdrawal of the case file as deeply troubling, particularly given what it perceived as unequal access to information between the parties. It warned that the situation could suggest external interference, citing claims by Mr. Ariori of connections to the current Attorney General of Lagos State.

The disputed land is registered as No. 25 at Page 25, Volume 81 of the land registry, as delineated in Survey Plan No. JLS/23/78. Despite being in court for several years, the case has made little substantive progress.

Both petitions now place the burden squarely on the Chief Judge to explain the rationale behind his intervention—an explanation that may determine not just the fate of this case, but also broader public confidence in the administration of justice in Lagos.

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Judiciary

Alleged Money Laundering: Court Admits More Exhibits Against Ex-AGF Malami, Son, Wife

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Justice Joyce Abdulmalik of the Federal High Court sitting in Maitama, Abuja, on Monday admitted nine exhibits against a former Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, SAN, alongside his wife, Hajia Bashir Asabe, and his son, Abubakar Abdulaziz Malami.

The exhibits were tendered before the court by the Economic and Financial Crimes Commission (EFCC) in its ongoing trial of the former AGF, his son, and wife.

The anti-graft agency is prosecuting the defendants on an amended 16-count charge bordering on conspiracy, procuring, disguising, concealing, and laundering proceeds of unlawful activities to the tune of ₦8,713,923,759.49, contrary to the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022.

The exhibits, which are documentary evidence, were tendered through the fourth prosecution witness (PW4), a compliance officer with Zenith Bank Plc, Mashelia Arhyel Bata, while being led in evidence by the prosecution counsel, Jibrin Okutepa, SAN.

The witness told the court that, in the course of his official duties, he received correspondence from the EFCC requesting documents relating to several accounts linked to the defendants and associated entities.

He said, as a compliance officer with Zenith Bank, Maitama Branch, his duties include receiving correspondence from law enforcement agencies and responding accordingly.

PW4 further disclosed that the bank complied with EFCC’s requests by providing both soft and hard copies of documents relating to accounts belonging to the defendants and companies such as Rayhaan Hotels Limited, Rayhaan Bustan Agro Allied Limited, Nashab Limited, Golden Age Global Ventures, and Rahamaniyya Properties Limited.

He told the court that the documents are nine in number and that he can identify them when presented in court.

Upon an application by the prosecution counsel, the court admitted the documents, dated between July 19, 2024, and March 12, 2026, as Exhibits D1 to D9, despite an initial objection by defence counsel, Joseph Daudu, SAN, who noted that the dates fall within March.

Continuing his testimony under further examination by prosecution counsel, Ekele Iheanacho, SAN, the witness provided details of transactions contained in the exhibits.

He identified Exhibit D1 as containing account opening documents and statements for accounts belonging to Abubakar Malami and A.A. Malami & Co, including a naira account and a dollar account.

According to him, the statement of account for one of the accounts covered the period from January 1, 2012, to December 31, 2023, and confirmed that the accounts were active between 2015 and 2023, noting that “there were transfers within that period.”

The witness further revealed that total credits into one of the accounts stood at ₦383,637,021.55 between January 1, 2016, and December 31, 2023, while total credits from January 1, 2012, to December 31, 2015, amounted to ₦560,506,465.12.

On debits, he stated that ₦384,322,120.85 was recorded between 2016 and 2023, while ₦571,891,174.08 was debited between 2012 and 2015.

Providing a further breakdown of transactions, the witness told the court that on November 11, 2020, the account received ₦194,791,608.00 from New Horizons Limited, and on June 24, 2022, it received ₦622,500,000.00 from Rayhaan Bustan Agro Allied Limited.

He added that on July 1 and July 7, 2022, the account received ₦250,000,000.00 each from Rayhaan Hotels Limited, while on December 22, 2022, there was an inflow of ₦500,000,000.00 linked to Rayhaan Bustan Agro Allied Limited.

Continuing in that format, the witness identified several other transactions running into billions of naira.

Following the testimony, defence counsel, Joseph Daudu, SAN, sought an adjournment to enable him study the exhibits and prepare for cross-examination.

Justice Joyce Abdulmalik subsequently adjourned the matter until May 13, 2026, for the cross-examination of the fourth prosecution witness.

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Judiciary

Emefiele Trial: EFCC Insists Omoile’s Statement Was Voluntary

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The Economic and Financial Crimes Commission (EFCC) has urged an Ikeja Special Offences Court to admit in evidence the extra-judicial statement of a co-defendant in the ongoing trial of former Central Bank of Nigeria Governor, Godwin Emefiele, insisting that the statement was made voluntarily and in compliance with the law.

The Director of Public Prosecutions (DPP) of the Federation, Rotimi Oyedepo, SAN, appearing for the EFCC, told the court that the statement by the second defendant, Henry Omoile, was obtained in substantial compliance with the provisions of the Administration of Criminal Justice Act (ACJA), stressing that it was made in the presence of his counsel, even though it was not video-recorded.

He further argued that the contents of the statement undermine allegations of coercion, noting that Omoile expressly refused to implicate Emefiele in any wrongdoing and also denied committing the offences alleged against him.

According to the DPP, such denials are inconsistent with claims that the statement was extracted through intimidation or inducement, as the defendant maintained an independent position rather than yielding to investigative pressure.

Oyedepo also dismissed allegations of intimidation, pointing out that the statement was taken in the presence of several individuals, making coercion unlikely.

He added that the defendant was duly cautioned and voluntarily signed the cautionary form before making the statement.

He further contended that counsel to Emefiele lacked the basis to challenge the admissibility of the co-defendant’s statement, having initially declined to object when it was tendered, describing the subsequent objection as an abuse of court process.

In response, defence counsel, including Adeyinka Kotoye, SAN, representing the second defendant, and Olalekan Ojo, SAN, for Emefiele, urged the court to reject the statement on the grounds that it was not made voluntarily.

Kotoye argued that the process of obtaining the statement failed to comply with the mandatory provisions of the law, particularly Sections 9(3) and (4) of the Administration of Criminal Justice Law (ACJL) and Sections 17(1) and (2) of the ACJA.

He maintained that where voluntariness is in dispute, video recording of the interrogation process is essential, relying on Supreme Court authorities to argue that such recordings are the most reliable means of verifying compliance with due process.

The senior advocate also questioned the role of the legal practitioner said to have been present during the recording of the statement, alleging that the lawyer was prevented from effectively performing his duty.

He further suggested that the statement may have been influenced by coercion or inducement.

On his part, Ojo relied on Section 29(2) of the Evidence Act, which renders inadmissible any statement obtained through oppression or improper means, arguing that the burden rests on the prosecution to prove voluntariness once it is challenged.

He submitted that the prosecution failed to discharge this burden and faulted it for not addressing key aspects of the defendant’s testimony, including allegations of trauma and lack of proper legal representation.

Following the adoption of final written addresses by all parties in the trial-within-trial, Justice Rahman Oshodi adjourned the matter to May 4, 2026, for ruling on the admissibility of the statement.

The court also fixed June 26 and June 30, 2026, for the continuation of the substantive trial.

Emefiele is facing a 19-count charge bordering on alleged gratification, corrupt demands, and abuse of office linked to large-scale financial transactions, while Omoile is charged with three counts relating to the alleged unlawful acceptance of gifts in connection with dealings involving the Central Bank of Nigeria.

The charges involve transactions estimated at $4.5 billion and ₦2.8 billion, which the prosecution alleges constitute serious breaches of trust and procedure.

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