Efforts by Nospetco Oil & Gas Limited investors to recover their investment worth N22, 445, 571 446.84 billion may have suffered a technical setback, as a Federal High Court, in Lagos dismissed their suit against the Central Bank of Nigeria, CBN, and the Security and Exchange Commission SEC.
Justice Lewis Allagoa in his ruling on a Preliminary Objection, filed by counsel to the CBN, Mr. Olumuyiwa Aduroja, SAN, held that the suit filed by Nospetco investors is statute-barred, and no longer legally enforceable owing to a prescribed period of limitation having lapsed.
Fourteen Nospetco investors, through their lawyer, Debo Adeleke, had on behalf of 13, 741 other investors, instituted suit number FHC/L/248/2012, against the Security & Exchange Commission, (SEC), the Central Bank of Nigeria, (CBN), and Nospetco Oil & Gas limited.
The Plaintiffs are praying the court to mandate the 2nd Defendant (CBN) to release a sum of N22, 445, 571, 446.84 (Twenty-Two Billion, Four Hundred Five Million, Five Hundred and Seventy-One Thousand, Four Hundred and Forty-Six naira point Eighty-Four) presently in its custody on the instruction of the 1st Defendant.
They are also praying the court to mandate the CBN to release, the N22, 445,571,446.84 billion back to the investors through their solicitor or through the court in a profit-yielding account.
The Plaintiffs also prayed the court for an order compelling the 3rd Defendant, (Nospetco Oil &Gas limited) to stop forthwith its illegal, unlawful and fraudulent business and banking activities, which it has been relentlessly carrying out under the covers since May 2007.
The Plaintiffs are also demanding for the sum of N10 million damages against the defendants.
However, Justice Allagoa in his ruling upheld the submissions of CBN counsel, Aduroja SAN, and held that the Plaintiffs failed to commence the suit within the statutory period of three months as prescribed under CAP. P41, LFN, hence the court has no jurisdiction to entertain the suit.
Aduroja had in a Preliminary Objection brought pursuant to Section 6(6) (b) of the Constitution and Section 53 of Banks and Other Financial Institutions Act, argued that the Plaintiffs’ cause of action arose on May 2007, and the suit was filed in 2012.
He argued that the suit was filed five years beyond the three months within which the Plaintiffs are allowed to bring an action against a Public Officer including Corporate or Statutory corporations or bodies like the Central Bank of Nigeria.
Aduroja urged the court to hold that the issue of limitation touches on the jurisdiction of the Court and can be raised at any time.
He stated that the 2nd Defendant (CBN), became involved in the transaction in the process s of carrying out its statutory duties under Section 2 of the CBN Act 2001 and that by the provision of Section 53 (1) of BOFIA, the 2nd Defendant is protected against any adverse claims for anything done or omitted to be done in good faith in connection with the execution of any power conferred upon the Bank.
He further argued that the provision of Section 53 (1) of BOFIA applies to the 2nd Defendant not only when it is implementing the provisions of BOFIA but also when it is carrying out its statutory duties under the Central Bank of Nigeria Act, 2007.
It would be recalled that the Supreme Court had earlier affirmed that the rights of Investors in Nospetco Oil & Gas Ltd to approach the court for recovery of their money.
The Apex court decision, aligned with the judgement of the Court of Appeal, which held that the money actually belonged to the investors.
The 14 years old legal battle began when the Security and Exchange Commission (SEC), declared a scheme founded by Nospetco Oil And Gas Limited illegal.
Nospetco was registered solely for the importation, sale, and distribution of petroleum products and cooking gas.
But the firm started a collective investment scheme between 2004 and 2005 and encouraged thousands to invest N450, 000 per slot, with a promise of a monthly N40, 000 return on investment on each slot.
Shortly after the respondents had invested in the firm, SEC, in 2007, stopped the firm’s operations, describing it as illegal.
The regulatory agency also froze its various bank accounts and deposited the money with the CBN on behalf of the investors.
Miffed by this, Nospetco investors in suit No: SC/305/2012 sued SEC and the CBN as co-defendants.
The Plaintiffs are seeking a declaration that they are entitled to the release of a sum of N22, 445, 571, 446.84 (Twenty-Two Billion, Four Hundred Five Million, Five Hundred and Seventy-One Thousand, Four Hundred and Forty-Six naira point Eighty-Four) presently in the custody of the 2nd Defendant on the instruction of the 1st Defendant.
The plaintiffs are seeking the following, ‘’A declaration that the continued withholding of a sum N22, 445, 571, 446.84 (Twenty-Two Billion, Four Hundred Five Million, Five Hundred and Seventy-One Thousand, Four Hundred and Forty-Six naira point Eighty-Four) frozen from the accounts of the 3rd Defendant by the 2nd Defendant without releasing same to the Plaintiffs on demand is unlawful and inimical to the over-tiding interest of the Plaintiffs.
‘’A declaration that the refusal, omission, or failure of the 1st defendant to direct the 2nd defendant to release the salvaged fund to the Plaintiffs on demand is contrary to the 1st defendant’s statutory duty to protect the interest of the Plaintiffs.
‘’A declaration that the continued refusal, omission, and/or failure of the 2nd Defendant to release the money in its custody to the Plaintiffs despite the repeated demands and numerous representation amounts to insensitivity to the plights of the Plaintiffs, Legally indefensible and morally wrong.
‘’An order mandating the 2nd Defendant to release a sum of N22, 445 571 446.84 Twenty-Two Billion Four Hundred and Fort Five Million Five Hundred and Seventy-One Thousand Four Hundred and Fort Six Naira Point Eighty-Four to the investors (Plaintiffs) through their Solicitor and/or pay same to the Honourable Court in a profit yielding account.
‘’An order compelling the 3rd Defendant to stop forthwith its illegal, unlawful and fraudulent business and banking activities which it has been relentlessly carrying on undercover and clandestinely since May 2007 after its operations were halted by the 1° Defendant and refund the money invested by the Plaintiffs accordingly.
‘’An order of this Honourable Court awarding a sum of N10 Million as cost of instituting and prosecuting this action, traveling expenses to Abuja by the Plaintiffs and their Legal Representatives to plead, and demand for the release of their money in the custody of the 1st and 2nd Defendants.
