Oil services firm Zumax Nigeria Limited has filed a ₦4.1 billion lawsuit against the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos, accusing the apex bank of gross negligence and complicity in a disputed receivership that crippled its operations for two decades.
The company alleges that the CBN failed in its regulatory duty to supervise banks and protect customers’ interests, particularly in its dealings with First City Monument Bank (FCMB)—the financial institution that inherited Zumax’s account through mergers involving the defunct IMB International Bank PLC.
Zumax contends that it initially secured an overdraft facility of ₦50 million from IMB International Bank in 1998, which was later increased to ₦200 million. However, the company claims FCMB inflated its debt to ₦465.6 million by 2002—a figure it vehemently disputed.
Rather than addressing the alleged miscalculations, FCMB appointed a receiver to take control of Zumax’s operations, effectively shutting down the company from 2002 to 2022. This prolonged receivership, the firm claims, led to severe financial losses, the collapse of its business, and the loss of lucrative contracts with oil giants like Chevron and Shell Explorations Limited.
Zumax further asserts that despite repeated petitions to the CBN, the regulator failed to intervene or investigate FCMB’s actions, allowing what the company describes as financial mismanagement to persist unchecked.
In its lawsuit, Zumax seeks a declaration of negligence against the CBN and demands $41 million in special damages, covering lost income and asset depreciation, ₦2 billion in general damages, ₦2 billion in exemplary damages, and ₦100 million in legal costs.
The case, presided over by Justice Akintoye Aluko, has seen an early legal skirmish over procedural matters. At the latest hearing, CBN’s counsel, Adeleke Agboola (SAN), filed a preliminary objection, arguing that the court lacks jurisdiction to hear the matter.
However, Zumax’s lead counsel, Wole Olanipekun (SAN), urged the court to consider both the plaintiff’s application and the defendant’s objection simultaneously rather than prioritizing the CBN’s challenge.
Justice Aluko has adjourned proceedings until April 22, 2025, when he will rule on which application to hear first.
Zumax’s case is bolstered by a 2007 CBN report, which it claims confirmed that it had already repaid over ₦547 million to FCMB, proving that it was never in debt to the bank.
Additionally, the company cites a 2021 Court of Appeal ruling, which declared the consent judgment used to justify the receivership as fraudulent and ordered it to be set aside.
The lawsuit raises serious questions about regulatory oversight in Nigeria’s banking sector and the CBN’s role in protecting businesses from alleged financial malpractice. The outcome could set a major precedent for corporate accountability and financial sector governance in Nigeria.
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