Activists Challenge Supreme Court Ruling in $64 Million Trade Dispute
Omoyele Sowore, a prominent activist, along with the civil society organization Take It Back, has approached the Supreme Court to reconsider its recent ruling in a significant $64 million international trade dispute involving Nigerian corporations and financial institutions.
Background on the Supreme Court’s Decision
On May 24, 2024, the Supreme Court absolved Zenith Bank of its contractual responsibilities to Owigs & Owigs Nigeria Limited, which incurred substantial losses due to the dismantling of $64 million worth of contracts and supplies intended for export to China.
Demands for Review
The Take It Back Movement has issued a letter to the Chief Justice of Nigeria, the National Judicial Council, Zenith Bank, the Central Bank of Nigeria, the Minister of Industry, Trade and Investment, and the Inspector General of Police, demanding a prompt review and annulment of the judgment in the case SC/CV/709/2020. The group has set a seven-day ultimatum for a response.
Allegations Against Zenith Bank
In a letter penned by Comrade Andrew Moses, the Abuja coordinator for the movement, allegations against Zenith Bank were outlined. The bank is accused of acting as a confirming bank for a letter of credit issued by the Industrial and Commercial Bank of China (ICBC) in a solid mineral export transaction, yet it failed to fulfill its obligations after accepting confirmation fees related to the deal.
Claims of Malfeasance
The legal motion asserts that Zenith Bank introduced unlawful and additional requirements, including fraudulent cashbacks exceeding $400,000, inflows of naira-denominated funds, and profit-sharing agreements purportedly connected to affiliated entities. The Take It Back Movement contends that the non-compliance of Owigs and Obigs Nigeria Limited led to the failure of the entire transaction and the troubling disappearance of funds held by Zenith Bank, culminating in an estimated default of $42,961,739.84.
Acknowledging Economic Consequences
The group has characterized the situation as a “national economic scandal,” claiming that it has devastated Nigeria’s export sector, resulted in significant job losses, and severely damaged the country’s reputation in global trade and international banking partnerships.
Response from Zenith Bank
In a correspondence to Dr. Dame Adaora Umeoji, Group Managing Director of Zenith Bank, the Take It Back Movement expressed frustration over the bank’s alleged reluctance to address debts stemming from collapsed international trade agreements, particularly in light of the bank’s reported profit after tax exceeding N1 trillion for the 2025 financial year.
Supreme Court’s Justification
Zenith Bank maintained that the Supreme Court’s ruling, which favored the bank, deemed its actions as merely negligent rather than a breach of contract that warranted compensation. The bank described this outcome as a miscarriage of justice, where the perpetrator was exonerated while the victim was left accountable.
Concerns About Legal Precedents
The Supreme Court’s decision has also been criticized for misrepresenting the legal contract dispute between confirming banks and sellers, inaccurately presenting it as a conflict between buyers and sellers. This, critics argue, undermines the integrity of contractual agreements and places Nigeria’s standing in the international business arena at risk.
Impact on Nigeria’s Business Environment
The ruling has raised significant concerns among stakeholders, with warnings that it sends negative signals regarding the safety of conducting business in Nigeria. This could deter potential investors and undermine governmental efforts to rejuvenate the economy, according to statements from involved parties.
