Nigeria’s Attorney-General and Minister of Justice, Chief Lateef Fagbemi (SAN), has stepped in to prevent what could be a multibillion-pound fraud. Leading a team of top lawyers, he is challenging a controversial Supreme Court ruling that favored Petro Union Oil and Gas Limited.
This intervention marks the first time the government has been involved at such a high level in the case. Previously, Petro Union secured a £2.556 billion judgment from the Federal High Court in Abuja. However, an EFCC investigation later revealed that the company used a forged Barclays Bank UK cheque, linked to an account closed five years earlier.
Criminal Charges Against Petro Union Executives
The Federal Government is not only appealing the case but also prosecuting Petro Union’s top executives. Those facing 13 charges, including conspiracy, forgery, and fraud, include:
Prince Kingsley Okpala
Prince Chidi Okpalaeze
Prince Emmanuel Okpalaeze
Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates)
Justice Chukwujekwu Aneke is presiding over their trial at the Federal High Court in Lagos.
FG, CBN, and Union Bank Fight to Overturn Ruling
Chief Fagbemi’s involvement signals the government’s determination to reverse the March 11, 2014, court order. The ruling directed the Central Bank of Nigeria (CBN), Union Bank, the Minister of Finance, and the Attorney-General to jointly pay £2.556 billion plus 15% annual interest. With accumulated interest, the sum has now exceeded £15 billion, more than 50% of Nigeria’s foreign reserves.
During the March 17, 2025, Supreme Court session, Chief Fagbemi led the Federal Government’s legal team alongside senior counsel Mohammed Gazali (SAN). Union Bank’s legal team, led by Chief Adegboyega Awomolo (SAN), sought permission to amend its Notice of Appeal by adding eight more grounds.
Both the AGF and CBN supported the appeal, while Petro Union’s lawyers opposed it. After hearing arguments, the Supreme Court reserved its ruling for a later date.
How the Alleged Fraud Began
The controversy dates back to 1994 when Petro Union presented a £2.556 billion cheque at Union Bank. Claiming the funds were for major projects, the company sought to:
1. Build a refinery
2. Establish a new bank
Investigations later exposed the cheque as fraudulent. Barclays Bank confirmed:
Gazeaft Limited, the supposed issuer, was not a registered UK company.
The cheque was fake and had no valid account backing it.
Despite these findings, Petro Union secured a court ruling in its favor by presenting a questionable Central Bank statement. However, the CBN does not hold accounts for private companies.
What’s at Stake for Nigeria?
This case has drawn comparisons to the $10 billion Process and Industrial Development (P&ID) fraud attempt. If the Supreme Court upholds Petro Union’s claim, Nigeria could lose £15 billion, further straining its fragile economy.
With the Supreme Court’s decision pending, legal experts warn that Nigeria cannot afford another massive financial setback. The Federal Government is counting on the judiciary to deliver justice and prevent a historic legal blunder.
