In a decisive move to protect Nigeria from potential fraud, the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has led a team of senior lawyers to represent the Federal Government in a Supreme Court hearing over the controversial Petro Union Oil and Gas Limited case.
This marks the first time the Federal Government has been represented at such a high level in the case since the little-known company secured a judgment from the Federal High Court in Abuja, awarding it £2.556 billion.
However, an investigation by the Economic and Financial Crimes Commission (EFCC) concluded that Petro Union obtained the judgment using a Barclays Bank UK cheque drawn from an account that had been closed five years before it was presented.
This finding led to the ongoing prosecution of Petro Union’s directors before the Federal High Court in Lagos. The defendants—Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates)—are facing a 13-count charge of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke.
Chief Fagbemi’s direct involvement highlights the Federal Government’s determination to challenge the March 11, 2014, court order, which directed the Central Bank of Nigeria (CBN), Union Bank of Nigeria, the Minister of Finance, and the Attorney-General to pay Petro Union the judgment sum with 15% annual interest.
During the March 17, 2025, proceedings, Chief Fagbemi led a legal team that included Mohammed Gazali (SAN), a Director in the Federal Ministry of Justice, and other government lawyers.
Chief Adegboyega Awomolo (SAN) represented Union Bank, while the CBN’s legal team was headed by Damian Dodo (SAN), alongside Mrs. Olabisi Soyebo (SAN) and others.
A key development during the hearing was Chief Awomolo’s application to amend the Notice of Appeal by adding eight additional Grounds of Appeal. While the AGF and the CBN’s lawyers supported the motion, Petro Union’s legal team opposed it.
After hearing arguments from both sides, the Supreme Court reserved its ruling for a later date, to be communicated to the parties.
The judgment sum, now exceeding £15 billion with accrued interest, represents over 50% of Nigeria’s foreign reserves, sparking concerns among legal and financial experts. Many compare it to the infamous $10 billion Process and Industrial Development (P&ID) case.
The case dates back to 1994, when Petro Union allegedly obtained a £2.556 billion cheque from Barclays Bank UK. The company later presented the cheque at a Union Bank branch in Lagos, claiming it was for a refinery construction contract and the establishment of a bank.
However, investigations by the CBN and Union Bank revealed that the cheque, dated December 29, 1994, and drawn in favor of Gladstone Kukoyi & Associates, was counterfeit. Barclays Bank confirmed that Gazeaft Limited, the purported issuer, had no account with them and was not a registered company in the UK.
Despite this, Petro Union and its representatives claimed that Union Bank received the £2.556 billion on their behalf, transferring £2.159 billion to the CBN while keeping £396 million. This led to legal battles against both financial institutions, based on what authorities now consider fraudulent claims.
Legal filings indicate that Petro Union obtained its favorable judgment by allegedly presenting a falsified CBN statement of account—despite the fact that the Central Bank does not hold accounts for private companies or individuals.
Following these revelations, both the CBN and Union Bank appealed the judgment, citing emerging evidence of fraud.
With the Supreme Court now reviewing the case, legal experts and financial analysts are closely watching for a ruling that could either reinforce Nigeria’s fight against fraud or deepen concerns over the country’s financial vulnerabilities.
