Petrocam Trading Nigeria Ltd has asked the Federal High Court in Lagos to vacate an interim order freezing its bank accounts over an alleged N9.05 billion debt claimed by Zenith Bank Limited.
At Thursday’s hearing before the trial judge, Chukwujekwu Aneke, Petrocam’s legal team, led by Gboyega Oyewole, who is a Senior Advocate of Nigeria (SAN), urged the court to discharge the interim injunction granted on 3 March.
It argued that the order was obtained through suppression of material facts, which has caused severe financial hardship for the company.
Petrocam maintained that all obligations under a 2014 import finance facility had been fully settled.
In an affidavit by the company’s Head of Trade, Sunmola Omolara, Petrocam stated that over N7.4 billion in petroleum sales proceeds had been remitted directly to the bank, supported by bank statements and domiciliation records.
The company alleged that Zenith Bank failed to comply with a Central Bank of Nigeria directive mandating a 100 per cent interest waiver on subsidy-related debts.
Petrocam submitted a Letter of Non-Indebtedness dated 16 December 2024, allegedly issued by Zenith Bank, arguing that its account was in credit except for a contingent liability tied to a bank guarantee.
Also, Patrick Ilo, the second defendant, asked the court to strike out his name from the suit, insisting he neither provided a personal guarantee nor assumed personal liability, acting solely as an agent of Petrocam.
Zenith Bank response
Zenith Bank urged the court to dismiss Petrocam’s application and maintain the freezing order.
The bank was represented by Ajibola Aribisala, also SAN, who argued that its claim rests on a subsisting indebtedness and that Petrocam’s contentions are matters for trial, not grounds for lifting the injunction.
Mr Aribisala further warned that lifting the freeze could jeopardise the bank’s ability to recover the alleged debt if a judgment is eventually entered in its favour.
After hearing arguments from both parties, the judge adjourned the matter until 30 April for ruling.
Background
The court had initially ordered the freezing of accounts linked to Petrocam and Mr Ilo to preserve the funds that could be possibly used to settle the debt allegedly owed Zenith Bank.
Mr Aneke granted the interim order, restraining the defendants, their agents, and assigns from withdrawing, transferring, dissipating, or otherwise dealing with funds up to N9.05 billion.
The court also directed all financial institutions within its jurisdiction to place a “Post-No-Debit” restriction on accounts linked to Mr Ilo’s BVN 22141926401, extending the order to operators in Nigeria’s electronic payment system, including Nigeria Inter-Bank Settlement System, Interswitch Limited, and Interswitch Financial Inclusion Services Limited.
Court filings showed that the credit facility required Petrocam to formally accept the loan through authorised signatories, submit a board resolution approving the facility, disclose existing debts to other lenders, and route petroleum sales proceeds and Sovereign Debt Note subsidy payments through Zenith Bank.
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Petrocam was also expected to provide contract agreements for bank approval, contribute five per cent for each transaction, submit regular quarterly and annual financial statements, route all import duty payments through Zenith Bank, obtain marine insurance naming the bank as first-loss payee, and satisfy foreign exchange obligations.
Zenith Bank was authorised to settle maturing Usance obligations at 12 per cent interest if Petrocam failed to provide funds and recover all legal and ancillary costs in case of default.
The court granted Zenith Bank leave to serve the defendants through substituted means and ordered disclosure of accounts linked to the BVN, including balances and six-month transactional histories.
The ex parte motion was argued by Mr Aribisala on behalf of Zenith Bank, and the matter was initially adjourned for mention on 17 March.