Zumax Nigeria Limited has initiated legal proceedings against the Central Bank of Nigeria (CBN), seeking N4.1 billion in damages. The lawsuit, filed at the Federal High Court in Lagos, alleges gross negligence and complicity by the CBN in a receivership imposed by a financial services holding company headquartered in Lagos.

The dispute traces back to the early 2000s when the bank accused Zumax of owing approximately N465 million. In response, Zumax petitioned the CBN, which subsequently endorsed the bank’s position, leading to Zumax being placed under receivership.

However, in 2009, Zumax filed a lawsuit against the bank, asserting that it had fully met its financial obligations and was wrongfully placed under receivership. The company contended that this action caused severe financial damage.

In 2018, the Lagos High Court ruled in favour of Zumax, determining that the company had N602 million in excess funds with the bank as far back as 2003. The court ordered the bankto return the N602 million, establishing that Zumax was not indebted to the bank as previously alleged.

Zumax now accuses the CBN of negligence in its supervisory role over banks. The company claims that despite being aware of the nature of the receivership, the CBN failed to intervene, allowing the bank to maintain Zumax under receivership until 2022. This prolonged period, according to Zumax, led to significant financial losses and the collapse of its operations.

The case is being heard before Justice Akintoye Aluko. Zumax’s legal team is led by Chief Wole Olanipekun (SAN) and includes Chief Chijioke Okoli (SAN), and Mrs. Folashade Alli (SAN). The Central Bank of Nigeria is represented by Mr. Adeleke Agbola (SAN).

Zumax is seeking a declaration that the CBN was negligent in its duty to regulate Nigerian banks. Additionally, the company is requesting special damages amounting to $41 million, general damages of N2 billion, exemplary damages of N2 billion, and legal costs totaling N100 million.