Oil services company Zumax Nigeria Limited has dragged the Central Bank of Nigeria, CBN to court seeking N4.1 billion in damages over an alleged failure to supervise banks and protect customers.

The lawsuit, filed at the Federal High Court in Lagos, centers on a disputed receivership that Zumax claims crippled its business.

The company stated that it was placed under receivership for two decades based on a fabricated debt, despite repaying over N547 million to First City Monument Bank, FCMB. Rather than resolving the matter, FCMB allegedly appointed receivers to take over Zumax’s operations, leading to severe financial losses. The firm claimed that this move resulted in the collapse of its business and the termination of contracts with multinational oil companies.

Zumax is demanding $41 million in special damages, N2 billion in general damages, N2 billion in exemplary damages, and N100 million in legal costs. The firm insists that CBN’s negligence in regulating financial institutions allowed the wrongful receivership to continue, causing irreparable harm.

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In response, CBN has filed a preliminary objection, challenging the court’s jurisdiction to hear the case. The bank’s counsel, Adeleke Agboola (SAN), argued that the objection should be addressed before any other applications. He maintained that the plaintiff’s claims lacked merit and should not proceed.

Zumax’s lawyer, Wole Olanipekun (SAN), opposed the objection, asserting that only the court had the authority to determine whether the case should proceed. He argued that the law did not require a preliminary objection to be heard first, urging the court to consider the main suit.

Justice Akintoye Aluko has adjourned the case to April 22, 2025, for a ruling on whether to hear the preliminary objection before proceeding with the substantive suit.

Crediblenewsng.com