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Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has led a team of senior lawyers to represent the Federal Government at a Supreme Court hearing in the Petro Union Oil and Gas Limited case.
Join our WhatsApp ChannelThe company had secured a £2.556 billion judgment from the Federal High Court in Abuja.
According to reports, Petro Union got the judgment by allegedly using a Barclays Bank UK cheque to withdraw funds from an account closed five years before it was submitted, according to the Economic and Financial Crimes Commission (EFCC) investigation report.
The anti-graft agency’s findings prompted the ongoing trial of the oil company’s directors in Lagos’ Federal High Court.
The directors, Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (doing business as Gladstone Kukoyi & Associates), are accused of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke on 13 counts.
Chief Fagbemi’s appearance in the contentious case is significant because it demonstrates the Federal Government’s determination to fight the court order, made on 11 March 2014 which mandated the Central Bank of Nigeria (CBN), Union Bank of Nigeria, the Minister of Finance, and the Attorney-General to jointly pay Petro Union the judgment amount plus 15% annual interest.
During proceedings on 17 March 2025, Chief Fagbemi led a legal team that included Mohammed Gazali (SAN), a Director in the Federal Ministry of Justice, as well as other lawyers representing the Federal Government and its agencies.
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Union Bank’s legal team was led by Chief Adegboyega Awomolo (SAN), whereas the CBN’s legal representation was led by Damian Dodo (SAN), who was joined by Mrs. Olabisi Soyebo (SAN).
Chief Awomolo filed a motion to alter the Notice of Appeal by adding eight new Grounds of Appeal.
While the AGF and the CBN’s lawyers backed the request, Petro Union’s legal team opposed it.
After hearing the lawyers’ arguments, the Supreme Court postponed its verdict for a later date to be conveyed to the parties.
The total judgment against the Federal Government, CBN, and Union Bank is now more than £15 billion, including interest, which exceeds 50% of Nigeria’s foreign reserves.
Legal experts have drawn parallels between this predicament and the infamous $10 billion Process and Industrial Development (P&ID) case.
The disturbing events leading up to this judgment began in 1994 when Petro Union reportedly got a cheque worth £2.556 billion from a Barclays Bank branch in the United Kingdom.
The business delivered this cheque to a Union Bank branch in Lagos, stating it was for a refinery building contract and the foundation of a bank.
Following subsequent inspections by the CBN and Union Bank, Barclays Bank acknowledged that the cheque, dated 29 December 1994, and drawn in favour of Gladstone Kukoyi & Associates, was counterfeit.
Barclays Bank further stated that Gazeaft Limited, the bill of exchange issuer, did not have an account with them and was not listed as a UK-incorporated firm.
Despite these findings, Petro Union and its agents insisted that Union Bank received £2,556,000,000.00 on their behalf and remitted £2,159,221,318.54 to the CBN while keeping £396,778,681.46. Court actions were filed against the CBN and Union Bank in response to these questionable allegations.
In a disturbing development, Petro Union obtained a judgment by producing a supposed statement of account from the CBN, ignoring the fact that a Central Bank works as a banker for the government and banks, not for individual enterprises or individuals.
Following these procedures, both the CBN and Union Bank filed appeals to reverse the decision, particularly when evidence of fraudulent intentions emerged during the ongoing criminal prosecution of Petro Union and its executives at the Federal High Court in Lagos.
Furthermore, information already given to the Supreme Court implies that Petro Union may have acquired the lower court judgments by allegedly supplying evidence based on falsehoods, forgery, manipulation of facts, or concealing.
Given Nigeria’s rising debt profile, many commentators are concerned about the likelihood of another £15 billion ‘debt’ hovering over the country. The Supreme Court is expected to bring justice in this difficult case.
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