By Adenike Lawal
The Attorney General of the Federation and Minister of Justice, Chief Lateef Fagbemi, has taken decisive action to shield Nigeria from what is being described as a massive financial scandal involving Petro Union Oil and Gas Limited.
Leading a team of senior legal professionals, Fagbemi is representing the Federal Government at the Supreme Court, marking the first time the government is directly intervening at this level since Petro Union secured a controversial £2.556 billion judgment from the Federal High Court in Abuja.
The Economic and Financial Crimes Commission uncovered that Petro Union allegedly obtained this judgment fraudulently by presenting a cheque from Barclays Bank UK that was drawn from an account that had been closed five years earlier.
Several directors of the company, including Prince Kingsley Okpala and Prince Chidi Okpalaeze, are currently facing charges of conspiracy, forgery, and fraud at the Federal High Court in Lagos.
At the Supreme Court hearing on March 17, Chief Fagbemi, along with senior lawyers representing the Central Bank of Nigeria and Union Bank, opposed Petro Union’s claims, with Union Bank’s counsel seeking to amend their appeal with eight additional grounds.
Petro Union’s lawyers objected, leading the court to reserve its ruling for a later date.
The judgment debt, now exceeding £15 billion with accumulated interest, represents more than half of Nigeria’s foreign reserves, raising alarm among financial and legal experts.
Many have likened the case to the notorious $10 billion Process and Industrial Development scandal due to its potential economic consequences.
Investigations have revealed that Petro Union’s claims stem from a fraudulent 1994 cheque that Barclays Bank has since confirmed was issued by a non-existent entity.
Despite this, the company continues to assert its right to the judgment sum.
Legal analysts warn that if Nigeria fails to overturn the ruling, it could further strain the nation’s fragile economy.
The Supreme Court’s final decision is now eagerly awaited as the government fights to prevent what could become one of the biggest financial losses in Nigeria’s history.
