⚖️ Blow to Ecobank: Appeal Struck Out in $9.5M FX Dispute with Kam Industries
In a major legal setback for Ecobank Nigeria Plc, the Lagos Division of the Court of Appeal has struck out the bank’s appeal in a heated $9.5 million foreign exchange dispute with Kam Industries Nigeria Limited. The appellate court ruled the appeal as incompetent, academic in nature, and a gross abuse of court process, awarding ₦1 million in costs to Kam Industries.
Background of the Dispute
The case stems from an earlier ruling by Justice Daniel Osiagor of the Federal High Court in Lagos, which involved a Mareva injunction (a type of asset-freezing order) against Kam Industries, its founder Dr. Kamoru Yusuf, and Kamsteel Integrated Company. The injunction had frozen assets across 25 banks and financial institutions tied to the defendants, pending the outcome of a $9.5 million credit-related lawsuit initiated by Ecobank.
However, in a humane twist, the court modified the injunction and granted Kam Industries a one-time release of ₦500 million to settle outstanding salaries for over 4,000 employees nationwide—a decision Ecobank challenged.
⚖️ The Controversial Appeal
Ecobank’s legal team, led by Senior Advocate of Nigeria (SAN) Kemi Balogun, argued that a hearing notice issued on April 14, 2025, was improperly released without a formal application from any party. The notice scheduled a hearing for April 30, even though a ruling on the Mareva injunction was already fixed for June 4. The bank contended that this earlier hearing date violated procedure and prematurely altered the court’s timeline.
They subsequently filed a notice of appeal and a motion to stay proceedings.
⚖️ Court of Appeal’s Verdict: No Case Here
Representing Kam Industries, Yusuf Ali, SAN, fired back, asserting that no valid decision of the lower court existed for an appeal to hinge upon. He described the appeal as:
“Academic, hypothetical, and filed without leave of court — a clear abuse of process.”
Delivering the lead judgment, Justice Folashade Ojo, supported by Justices Paul Ahmed Bassi and Ngozika Okaisabor, sided with Kam Industries.
Key highlights from the judgment:
• A hearing notice is not an appealable decision. It is merely an administrative act by the court registry.
• ⚖️ No rights were affected. Since no judgment or order was issued, the appeal lacked merit.
• No leave of court was sought. Ecobank raised mixed issues of law and fact but failed to get the necessary legal approval to appeal.
• ❌ Appeal dismissed as academic. The court emphasized that pursuing such appeals wastes judicial time and has no practical outcome.
Final Judgment
After resolving all five issues in favour of Kam Industries, the appellate court ruled:
“This appeal is entirely incompetent and based on a faulty foundation. It is struck out, and ₦1 million in costs is awarded against Ecobank.”
Why This Matters
This ruling reinforces a critical principle in Nigerian jurisprudence: not every courtroom procedure is open to appeal—especially when it lacks legal substance or utility. For financial institutions like Ecobank, it’s also a reminder to pursue legally grounded strategies in high-stakes commercial disputes.
The decision may also boost confidence in judicial restraint and efficiency, particularly in cases involving massive employment and industrial implications like that of Kam Industries.
In a major legal setback for Ecobank Nigeria Plc, the Lagos Division of the Court of Appeal has struck out the bank’s appeal in a heated $9.5 million foreign exchange dispute with Kam Industries Nigeria Limited. The appellate court ruled the appeal as incompetent, academic in nature, and a gross abuse of court process, awarding ₦1 million in costs to Kam Industries.
Background of the Dispute
The case stems from an earlier ruling by Justice Daniel Osiagor of the Federal High Court in Lagos, which involved a Mareva injunction (a type of asset-freezing order) against Kam Industries, its founder Dr. Kamoru Yusuf, and Kamsteel Integrated Company. The injunction had frozen assets across 25 banks and financial institutions tied to the defendants, pending the outcome of a $9.5 million credit-related lawsuit initiated by Ecobank.
However, in a humane twist, the court modified the injunction and granted Kam Industries a one-time release of ₦500 million to settle outstanding salaries for over 4,000 employees nationwide—a decision Ecobank challenged.
⚖️ The Controversial Appeal
Ecobank’s legal team, led by Senior Advocate of Nigeria (SAN) Kemi Balogun, argued that a hearing notice issued on April 14, 2025, was improperly released without a formal application from any party. The notice scheduled a hearing for April 30, even though a ruling on the Mareva injunction was already fixed for June 4. The bank contended that this earlier hearing date violated procedure and prematurely altered the court’s timeline.
They subsequently filed a notice of appeal and a motion to stay proceedings.
⚖️ Court of Appeal’s Verdict: No Case Here
Representing Kam Industries, Yusuf Ali, SAN, fired back, asserting that no valid decision of the lower court existed for an appeal to hinge upon. He described the appeal as:
“Academic, hypothetical, and filed without leave of court — a clear abuse of process.”
Delivering the lead judgment, Justice Folashade Ojo, supported by Justices Paul Ahmed Bassi and Ngozika Okaisabor, sided with Kam Industries.
Key highlights from the judgment:
• A hearing notice is not an appealable decision. It is merely an administrative act by the court registry.
• ⚖️ No rights were affected. Since no judgment or order was issued, the appeal lacked merit.
• No leave of court was sought. Ecobank raised mixed issues of law and fact but failed to get the necessary legal approval to appeal.
• ❌ Appeal dismissed as academic. The court emphasized that pursuing such appeals wastes judicial time and has no practical outcome.
Final Judgment
After resolving all five issues in favour of Kam Industries, the appellate court ruled:
“This appeal is entirely incompetent and based on a faulty foundation. It is struck out, and ₦1 million in costs is awarded against Ecobank.”
Why This Matters
This ruling reinforces a critical principle in Nigerian jurisprudence: not every courtroom procedure is open to appeal—especially when it lacks legal substance or utility. For financial institutions like Ecobank, it’s also a reminder to pursue legally grounded strategies in high-stakes commercial disputes.
The decision may also boost confidence in judicial restraint and efficiency, particularly in cases involving massive employment and industrial implications like that of Kam Industries.