Zumax Takes CBN to Court, Accuses Regulator of Failing to Supervise FCMB

Oil services company, Zumax Nigeria Limited, has filed a ₦4.1 billion lawsuit against the Central Bank of Nigeria (CBN), accusing the apex bank of regulatory failure and gross negligence in a long-standing receivership dispute involving First City Monument Bank (FCMB).

In a suit currently before Justice Akintoye Aluko of the Federal High Court in Lagos, Zumax alleged that the CBN failed in its statutory responsibility to adequately supervise FCMB.

The oil services firm argued that the receivership, which lasted for two decades, was based on what it described as a “fabricated debt” claim, despite evidence of substantial repayments made to the bank.

According to court filings, Zumax claimed it had repaid over ₦547 million to FCMB, yet the bank allegedly proceeded to take over its business through court-appointed receivers.

The firm maintains that this action triggered severe financial distress, resulting in the collapse of its operations and the loss of key contracts with multinational oil corporations.

“The CBN had an obligation to intervene and ensure that banks under its supervision act within the bounds of the law. Its failure to act enabled FCMB to unjustly cripple our business,” Zumax stated in its affidavit.

The company is demanding $41 million in special damages, ₦2 billion in general damages, ₦2 billion in exemplary damages, and ₦100 million in legal costs.

The CBN, through its legal counsel Adeleke Agboola (SAN), has filed a preliminary objection, challenging the jurisdiction of the court to entertain the matter. Agboola maintained that the objection must be determined before any further action can be taken in the suit.

“This preliminary objection has precedence and must be resolved first,” he argued.

In response, Zumax’s counsel, Wole Olanipekun (SAN), countered that the court retains discretion in determining the sequence of applications, stating that the objection does not automatically override the substantive matter.

Justice Aluko adjourned the matter to April 22, 2025, to rule on which application the court will consider first.