In a landmark effort to protect Nigeria from potential financial fraud, the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has taken a prominent role in representing the Federal Government in a Supreme Court hearing concerning the Petro Union Oil and Gas Limited case.
According to Ripples Nigeria, this marks the first instance of such high-level representation by the Federal Government since the obscure company initially obtained a Federal High Court judgment in Abuja, awarding them £2.556 billion.
Investigations by the Economic and Financial Crimes Commission (EFCC) concluded that Petro Union had allegedly secured the judgment fraudulently, using a Barclays Bank UK cheque issued from an account that had been closed five years prior. This prompted the ongoing criminal trial of the company’s directors at the Federal High Court in Lagos.
Directors Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates) face a 13-count indictment, including charges of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke.
Chief Fagbemi’s involvement signals the Federal Government’s determination to contest the contentious 2014 court order, which mandated the Central Bank of Nigeria (CBN), Union Bank of Nigeria, the Minister of Finance, and the Attorney-General to collectively pay Petro Union the judgment sum with an annual interest rate of 15%.
At the March 17, 2025 proceedings, Chief Fagbemi led a distinguished team of legal experts, including Mohammed Gazali (SAN), a Director in the Federal Ministry of Justice. Chief Adegboyega Awomolo (SAN) led the defense for Union Bank, while Damian Dodo (SAN), accompanied by Mrs. Olabisi Soyebo (SAN) and others, represented the CBN.
An application by Chief Awomolo to amend the Notice of Appeal by adding eight new Grounds of Appeal was supported by the AGF and the CBN but opposed by Petro Union’s legal team. After deliberation, the Supreme Court reserved its ruling for a later date, yet to be announced.
The judgment sum, now exceeding £15 billion due to interest, constitutes more than half of Nigeria’s foreign reserves—a financial strain comparable to the notorious $10 billion Process and Industrial Development (P&ID) case.
This complex saga began in 1994 when Petro Union reportedly fraudulently secured a £2.556 billion cheque from a Barclays Bank UK branch. Presented at a Union Bank branch in Lagos, the cheque was ostensibly tied to projects involving a refinery and a banking institution. However, subsequent investigations revealed the cheque was counterfeit, and the issuing entity, Gazeaft Limited, lacked both an account and registration with Barclays Bank.
Despite these findings, Petro Union claimed that Union Bank had received £2.556 billion on their behalf, transferring a majority to the CBN while retaining a portion. They pursued legal action based on these assertions, eventually obtaining a judgment by reportedly submitting fraudulent documentation.
The CBN and Union Bank later filed appeals to overturn the judgment, citing mounting evidence of forgery and false representation during the lower court proceedings. Current cases before the Supreme Court suggest that Petro Union’s claims may have been based on manipulated facts and concealed evidence.
As Nigeria faces mounting debts, the additional £15 billion liability has raised public concern. Observers are hopeful that the Supreme Court will resolve this multifaceted matter justly.
