Justice Chukwujekwu Aneke of the Federal High Court in Lagos has adjourned until April 30, 2026, ruling on Petrocam Trading Nigeria Limited’s application to lift an interim order freezing its bank accounts over an alleged N9.05 billion debt. The news was reported by TRUETELLS Nigeria.
The freezing order was initially granted following an ex parte application by a commercial bank in Suit No: FHC/L/CS/393/2026 to secure funds it claims are owed by Petrocam and its principal, Patrick Ilo, as of May 31, 2025.
At the resumed hearing, Petrocam’s legal team, led by Gboyega Oyewole (SAN) and Supo Ati-John (SAN), urged the court to set aside the order, arguing it was obtained without disclosure of material facts and has significantly disrupted the company’s nationwide operations.
Counsel explained that Petrocam remains a viable business and that the freezing of its accounts has caused severe financial strain, despite no evidence of funds being at risk of dissipation.
In an affidavit filed by its Head of Trade, Sunmola Omolara, the company denied any outstanding debt, asserting that all obligations under a 2014 import finance facility had been fully settled. Petrocam highlighted that over N7.4 billion in petroleum sales proceeds were remitted directly to the bank, supported by bank statements and domiciliation records involving major companies such as Total Nigeria Plc and Oando Plc.
The company stated that the facility was to be repaid via petroleum sales proceeds and Sovereign Debt Notes issued under the Federal Government’s fuel subsidy programme, and that any temporary shortfall was due to delays in government payments, which were later cleared between 2019 and 2020.
Petrocam further alleged that the bank was aware of, and participated in, the subsidy-backed repayment plan, and that all interest on the facility had been waived and settled through the Debt Management Office.
A central argument in the application is that the bank allegedly violated a Central Bank of Nigeria directive mandating a 100% interest waiver on subsidy-related debts, while continuing to charge interest as recently as 2023 and 2024. The company also claimed that regulatory authorities had instructed the bank to refund excess charges, which the bank did not comply with.
Petrocam relied on a Letter of Non-Indebtedness dated December 16, 2024, issued by the bank, which it says confirmed its account was in credit, except for a contingent liability tied to a bank guarantee. The company argued that the bank’s subsequent claim of N9 billion contradicts this letter and undermines the rationale for the account freeze.
The company also contended that no valid demand notice was served prior to the filing of the suit, describing a June 2025 demand letter sent to the wrong address as an afterthought. Additional allegations include bank negligence in managing the facility, such as failure to secure foreign exchange for letters of credit and improper accounting of funds remitted.
Patrick Ilo, the second defendant, seeks to be removed from the suit, asserting he did not provide a personal guarantee and acted only as an agent of the company. He also denied allegations of fraud or diversion of funds.
The defendants argued that the bank failed to meet the legal threshold for the interim injunction and claimed no substantial issue exists for trial, especially given the alleged confirmation of non-indebtedness. They added that the balance of convenience favours Petrocam, which is operationally paralyzed under the account freeze, while the bank can be compensated in damages if it prevails at trial.
Representing the bank, Chief Ajibola Aribisala (SAN) opposed the application, insisting that the freeze order must be maintained to protect the bank’s claims. He argued that Petrocam’s points are substantive matters for trial, not reasons to set aside the interim order, and warned that lifting the order could endanger the bank’s ability to recover the alleged debt.
Following the submissions from both parties, Justice Aneke adjourned the matter for ruling on April 30, 2026.
TRUETELLS Nigeria will continue to monitor developments in this high-stakes N9 billion dispute.
