E-Financial
Zumax Files N4.1Bn Suit against CBN over ‘Fraudulent’ Receivership
Zumax Nigeria Limited, an oil services company, has filed a N4.1 billion lawsuit against the Central Bank of Nigeria (CBN), alleging gross negligence and complicity in what it calls a fraudulent receivership imposed by the apex bank.
In the case, which is before the Federal High Court, Lagos, Zumax claimed that the CBN failed in its statutory duty to supervise banks and protect customers’ interests.
At the hearing of the matter on Tuesday before Justice Akintoye Aluko, Chief Wole Olanipekun (SAN) told the court that the Plaintiff (Zumax) had an application dated February 20, 2025, asking the court to hear the application.
He urged the court to allow him to move the application as the defendant had responded.
Olanipekun also told the court that the Plaintiff and defendant’s preliminary objections can be consolidated and heard together.
He stated that the priority of which application to be heard first shouldn’t arise as the Plaintiff has not opposed the hearing of CBN’s preliminary objection.
But Adeleke Agboola (SAN), counsel, counsel, told the court that the defendant has a preliminary objection in the suit, which commenced as a writ of summons challenging the jurisdiction of the court.
He argued that CBN filed its notice of preliminary objection within time and that the Plaintiff has responded to it.
Agboola said: “This preliminary objection has priority over any other applications. The Plaintiff’s application is not meritorious.
“There is no suggestion by the claimant that we did not file within time. We are saying that this court does not have the jurisdiction to hear this matter. I urge your lordship to allow us to argue this matter.
“There is no doubt that preliminary objection takes precedence; it says it must be heard first, and determining our objection is very serious; we have complied strictly by the rules.
“We urge this court to hear the preliminary objection and dismiss the Plaintiff’s application.”
In his response, Olanipekun said: “My learned friend said the application we filed is not meritorious. It is the court that can make any pronouncement on that.
“My lord, even when we talk of being tidy, we are not saying the court should not hear his preliminary objection. He is now the one saying that our application should not be heard.
“The court has to determine whether the objection has to be heard first or the Plaintiff’s application dated February 20, 2025, has to be heard first.
“It’s no longer the law; in fact, it has never been the law that when there is a preliminary objection, the court will say let’s take it first. We urge your lordship to take our application that has not been contested by the defendant.”
After listening to the submissions and arguments of both parties, Justice Aluko adjourned the case till April 22, 2025, for ruling on which application to hear first.
According to court documents, Zumax had and maintained its account with the defunct IMB International Bank Plc., which, under several mergers and consolidations of banks, ultimately fused into the much larger banking institution known as First City Monument Bank (FCMB).
The Plaintiff said it obtained a facility from IMB International Bank, an overdraft facility of N50m, which was later increased to N200m in/or at 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, the claim which was vehemently disputed by Zumax.
Zumax contends that FCMB, under its former Managing Director Edwin Chinye, took control of its foreign currency earnings held in a JP Morgan Bank account through its sister company, Redsear Limited.
According to the plaintiff, the Bank’s Managing Director not only insisted upon and got shares in Redsears Limited and a directorship of that company as a condition precedent for the loan, he also allegedly inserted himself as the lone signatory for the company’s bank account with JP Morgan Bank.
The plaintiff further alleged that “the bank misappropriated $ 4 million from this account, a shortfall discovered during an audit.
“Rather than addressing the dispute, FCMB appointed receivers to take over Zumax’s operations, a move the company described as fraudulent.
“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 with multinational oil companies such as Chevron.
“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 FCMB’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 to FCMB, proving it was never in debt to the bank.
“Additionally, the Court of Appeal ruled in December 2021 that the consent judgment upon which the receivership was based was fraudulent and should be set aside.”
The plaintiff is seeking a court declaration that the CBN was negligent in its duty to regulate Nigerian banks.
It’s also asking for special damages amounting to $ 41 million, including lost income and asset depreciation; general damages of N2 billion, exemplary damages of N2 billion, and legal costs amounting to N100 million.
But the CBN’s preliminary objection is challenging the jurisdiction of the Court to hear the matter.
Independent revenue remittance by the Government-Owned Enterprises (GOEs) moved from ₦200 billion in 2013 to over ₦2 trillion in 2024, Fiscal Responsibility Commission (FRC) confirmed the updated figure, on Wednesday.
FRC attributed the surge to collaboration between it and House of Representatives Public Accounts Committee (PAC).
Speaking at 2025 National Conference on Public Accounts and Fiscal Governance, held at the Transcorp Hilton, Abuja, Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, Esq however notes with concern persistent challenge despite achievements. He cited weak enforcement mechanisms, limited public awareness, and the slow domestication of the FRA at the subnational level as according to him, only 26 out of 36 states have adopted similar laws.
He advocated for the establishment of a National Fiscal Governance Framework to improve coordination and strengthen audit and oversight structures.
Muruako further underscored the need for strict adherence to constitutional provisions, particularly regarding public debt and borrowing, which remain under the exclusive legislative list. He urged federal and sub-national actors to align their fiscal policies under the renewed hope agenda of President Tinubu’s administration.
Muruako called on state and local government operators across Nigeria to adopt and fully implement fiscal responsibility laws in line with the federal framework.
The event organized by House of Representatives Public Accounts Committee (PAC), brought together key financial stakeholders to discuss strategies for promoting transparency and sustainable development in Nigeria’s public financial management.
He lauded administration’s of president Bola Ahmed Tinubu commitment to strengthening financial policies aimed at driving economic growth. He emphasized that states and local governments must “key into” the Fiscal Responsibility Act (FRA) to ensure fiscal discipline and alignment with federal financial standards.
Highlighting a critical legislative gap, Muruako noted that the FRA 2007 currently outlines 54 offenses but does not prescribe punishments for offenders. He called for the urgent amendment of the Act to include stronger penalties, thereby enhancing compliance and service delivery.
“The Act must be amended speedily for efficiency and to deliver real value to Nigerians,” he stressed.
He congratulated the PAC, led by Hon. Bamidele Salam, for hosting the conference, which he described as a pivotal step toward strengthening accountability in the public sector.
He advocated for the establishment of a National Fiscal Governance Framework to improve coordination and strengthen audit and oversight structures.
Muruako further underscored the need for strict adherence to constitutional provisions, particularly regarding public debt and borrowing, which remain under the Exclusive Legislative List. He urged federal and subnational actors to align their fiscal policies under the Renewed Hope agenda of President Tinubu’s administration.
Reaffirming the FRC’s commitment to advancing transparency and reducing financial leakages, Muruako pledged continued support to the PAC in institutionalizing sound public financial management practices.
He also congratulated the committee for securing Nigeria’s hosting rights for the 2025 West African Association of Public Accounts Committees (WAPAC) Annual Conference, describing it as a testament to Nigeria’s leadership in regional fiscal governance.
Union Bank of Nigeria has reacted to the recent judgment delivered by Justice Abike Fadipe of the Ikeja High Court involving Senator Jimoh Ibrahim, NICON Investment Limited, Global Fleet, and the bank.
The bank expressed strong disagreement with the ruling and confirmed that its legal team has been directed to file an appeal immediately. It said the court’s position on issues such as debt consolidation, locus standi, and third-party liability contradicts existing legal principles and the bank’s understanding of the facts.
In a statement released by Mrs. Olufunmilola Aluko, Chief Brand and Marketing Officer, Union Bank reiterated that the relevant debt obligations had been transferred to the Asset Management Corporation of Nigeria (AMCON), adding that all actions taken were in line with the law and standard banking procedures.
Union Bank assured stakeholders, customers, and the general public of its continued commitment to ethical practices, legal compliance, and professional conduct. It said it remains dedicated to protecting stakeholder interests and upholding the integrity that has defined its operations for more than a century.
The bank concluded by thanking all stakeholders for their trust and support as it navigates the ongoing legal process.
PalmPay, a leading digital banking platform in Africa has announced the launch of strategic partnerships with top-tier insurance providers to offer accessible, affordable and simplified insurance products directly within the PalmPay app.
This initiative reflects the brand’s continued commitment to deepening financial inclusion and underscores its mission to improve the wellbeing of everyday Nigerians.
With only about 8.9% of Nigerians currently covered by any form of health insurance, the country remains one of the least insured populations in Africa. Barriers such as low awareness, affordability challenges, and trust issues continue to hinder broader adoption of insurance products.
PalmPay’s new insurance offering directly addresses these challenges by simplifying the purchase and management of insurance policies within the app. The PalmPay insurance feature is designed to make essential coverage, from health to device, and life insurance easily accessible at affordable prices, eliminating the traditional complexities often associated with insurance.
“Insurance is often perceived as complex or inaccessible, especially among underserved communities.” said Habib Kowontan, Head of Wealth Product at PalmPay. “Through these partnerships, we aim to break down those barriers by offering simple, reliable and affordable insurance options that are easily accessible within the PalmPay app.”
With over 35 million users across Nigeria, PalmPay continues to evolve as a smart, consumer-first digital banking platform. The integration of insurance services complements its growing suite of offerings, which includes transfers, bill payments, high-interest savings, and debit card services, making PalmPay one of the most comprehensive digital banking platforms in the African market.
“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” said Mr Chika Nwosu, Managing Director of PalmPay. “Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”
This rollout marks a significant milestone in PalmPay’s broader strategy to empower users with tools that enhance their daily lives. Building not just a payments app, but a smart and trusted financial partner for millions of Nigerians.
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