The Federal High Court in Lagos has lifted the order freezing the assets of Kam Industries Nigeria Limited over an alleged $9.5m trade finance dispute with Ecobank Nigeria Plc.
Justice Daniel Osiagor, in a ruling delivered on July 25, 2025, set aside the Mareva injunction previously granted to Ecobank, citing the failure to join the Central Bank of Nigeria, a key party to the transaction, in the suit.
The judge held that both Kam Industries and Ecobank acknowledged the central role of the CBN in the disputed transaction, particularly regarding foreign exchange and letters of credit.
He ruled that any judgment made in the absence of the apex bank would be incomplete.
“The mutual recognition of the Central Bank of Nigeria’s role makes it essential for the court to understand the full scope of the bank’s involvement,” Osiagor said.
Although the freeze was lifted, the court ordered that N1.5bn be ring-fenced in Kam Industries’ account with Fidelity Bank as security, pending the outcome of the substantive matter.
“On the agreement of the parties, the ex parte order is hereby discharged, and the assets of the company are not to be dissipated or transacted with.
“The sum of N1.5bn is hereby ring-fenced in the Fidelity account of the defendants as security for the case,” the judge ruled.
The court also struck out Polaris Bank as a party to the suit and adjourned the case to January 26, 2026.
The Mareva injunction, initially granted on October 7, 2024, had restrained 25 commercial banks and financial institutions from granting Kam Industries, its Chairman, Dr Kamoru Yusuf, and Kamsteel Integrated Company Limited, access to funds, bonds, shares or negotiable instruments worth N3bn and $6.8m.
Ecobank had filed the suit, marked FHC/L/CS/1748/2024, by originating summons dated September 27, 2024.
The bank sought a declaration that it was entitled to recover the outstanding balance of the facility, which it claimed stood at N3bn and $6.8m, following the defendants’ alleged breach of loan terms.
The bank also urged the court to vest in it all assets belonging to the defendants, both locally and abroad.
The claims were supported by a 43-paragraph affidavit and 14 documentary exhibits.
Ecobank said the facility included a factory charge of $634,688.75 and debts totalling over N3.6bn as of July 9, 2024.
It further requested that all assets held by Yusuf and Kamsteel, identified as the second and third defendants, be vested in the bank, citing personal and corporate guarantees issued in respect of the facility.
Specifically, Ecobank asked the court to enter judgment against all three defendants for the alleged indebtedness and to vest in the bank all assets, cash, bonds, real estate, stocks, and negotiable instruments held by the defendants in any financial institution in Nigeria or abroad until satisfaction of the debt.
However, the defendants disputed the figures, claiming their actual liability was about N782m, which they said had already been settled through a foreign exchange forward contract.
They insisted the transaction was a tripartite arrangement involving the CBN, which they accused of defaulting on its role in facilitating letters of credit.
Kam Industries also disclosed that it executed a domiciliation agreement, while Yusuf and Kamsteel provided guarantees and issued promissory notes dated March 15 and April 28, 2023.