CSO asks S/Court to revisit faulty judgement on multi-dollar contract

A coalition of civil society organizations has called on the Supreme Court to review its judgment in a multi-million dollars contractual dispute between an indigenous company, Owigs and Obigs Nig. Ltd and Zenith Plc. The CSO under the aegis of Empowerment for Unemployed Youths Initiative, Independent Public Service Accountability Watch amongst others made the call […]

A coalition of civil society organizations has called on the Supreme Court to review its judgment in a multi-million dollars contractual dispute between an indigenous company, Owigs and Obigs Nig. Ltd and Zenith Plc.

The CSO under the aegis of Empowerment for Unemployed Youths Initiative, Independent Public Service Accountability Watch amongst others made the call yesterday at a press conference in Abuja.

Briefing the press, the convener, Stephen Ebira, faulted the judgment of the apex court in suit number SC/CV/709/2020 on the grounds that it was marred by deceit rulings and misrepresentation of facts contrary to the evidence before the court.

Owigs, which secured a contract to supply solid mineral products to a Chinese firm, invited Zenith Bank and its foreign partners to provide credit guarantee for the deal on the terms agreed in the JYOONL-OO1/ KTTA 140415 but the bank was alleged to have abdicated its obligation to the seller to confirm the letter of credit from the importer’s bank when the merchandise was ready for shipment thereby disrupting the export.

Ebira said the deal involved a quadrilateral agreement between the buyer, seller, LC issuing bank, and LC confirming bank, comprising four interdependent and interrelated autonomous contracts.

He noted that the judgment delivered on May 24, 2024 made defences in favour of Zenith Bank when it stated that its action was only a negligence and not a breach of the contract that was liable to pay damages, amounted to miscarriage of justice as the wrongdoer was declared innocent and rewarded, while the victim was held liable.

The CSO alerted that Nigeria is fasting becoming a country where the business community is facing international stigma because the apex court has introduced “a troubling norm where cotracts can be breached without consequences.”