Follow Us on Google
By Lukman Olabiyi
The Federal High Court, Lagos,has lifted a previous order freezing the assets of Kam Industries Nigeria Limited in connection with a $9.5 million trade finance dispute with Ecobank Nigeria Plc.
The decision was delivered on July 25, 2025, by Justice Daniel Osiagor, who ruled that the Central Bank of Nigeria (CBN), a key party in the disputed transaction was not joined in the suit.
Justice Osiagor emphasized that both parties in the case acknowledged the CBN’s central role in the transaction, particularly regarding the issuance and funding of Letters of Credit.
He stated that any judgment rendered without the apex bank’s participation would be incomplete and potentially flawed.
“The mutual recognition of the Central Bank of Nigeria’s role makes it essential for the court to understand the full scope of the bank’s involvement,” Justice Osiagor ruled.
The court consequently discharged the Mareva injunction granted in October 2024, which had frozen Kam Industries’ assets across 25 Nigerian financial institutions.
The injunction had restricted access to the company’s funds, bonds, shares, and other negotiable instruments totaling over ₦3 billion and $6.8 million.
However, to protect Ecobank’s interests during the litigation, the court ordered that the sum of N1.5 billion be ring-fenced in Kam Industries’ account with Fidelity Bank as security pending the final determination of the case.
“The sum of 1,500,000,000.00 is hereby ring-fenced in the Fidelity account of the defendants as security for the case,” the judge ruled.
He also directed that Kam Industries’ assets are not to be dissipated or otherwise transacted with.
Other News
Additionally, the court struck out Polaris Bank as a party to the suit and adjourned the case to January 26, 2026, for further proceedings.
The dispute stems from a credit facility Ecobank granted to Kam Industries, Kamsteel Integrated Company Limited, and their Chairman, Kamoru Yusuf.
The bank, in a suit marked FHC/L/CS/1748/2024, claimed that the defendants defaulted on loan terms and sought to recover over N3 billion and $6.8 million in principal and accrued interest.
Ecobank asked the court to award judgment against all three defendants and to vest their assets including cash, bonds, real estate, and negotiable instruments in the bank’s favour until the debt was repaid.
The bank supported its claims with a 43-paragraph affidavit, 14 exhibits, and a written address.
However, the defendants challenged the allegations, arguing that their actual liability was much lower—about ₦782 million, which they claimed had already been paid.
They contended the transaction was based on a tripartite agreement involving the CBN, under which the Central Bank failed to fulfil its obligations.
While acknowledging Ecobank’s role in partial funding, the defendants claimed they also made payments through the bank and had executed all required guarantees, including personal and corporate ones.
Justice Osiagor, noting the dispute’s complexity and the emergence of factual disagreements, ruled that the matter could no longer be adjudicated through an originating summons—a summary procedure typically reserved for uncontested matters.
Citing the Amona v. Owodino Development Association (2004) precedent, the judge transferred the case to the General Cause List, where it will proceed to full trial, requiring parties to file detailed pleadings and present oral evidence.
