Attorney-General Intervenes as Supreme Court Hears £15bn Petro Union Fraud Case

Abuja, March 18, 2025 – In a major legal move to protect Nigeria’s financial interests, the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has taken a leading role in the Supreme Court hearing over the controversial £15 billion Petro Union Oil and Gas Limited case.

This marks the first time the Federal Government has been represented at such a high level since the little-known company secured a judgment from the Federal High Court in Abuja, ordering the Central Bank of Nigeria (CBN), Union Bank, the Minister of Finance, and the Attorney-General to jointly pay Petro Union £2.556 billion, plus 15% interest per annum.

Allegations of Fraud and Forgery

The case stems from allegations that Petro Union obtained the judgment fraudulently. According to the Economic and Financial Crimes Commission (EFCC), the company used a Barclays Bank UK cheque drawn from an account that had been closed five years before it was presented.

This led to the ongoing criminal trial of the company’s directors—Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates)—before the Federal High Court in Lagos. They are facing a 13-count charge of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke.

Supreme Court Proceedings

During the March 17, 2025, hearing, Chief Fagbemi led a team of senior lawyers, including Mohammed Gazali (SAN), a director in the Federal Ministry of Justice, to represent the Federal Government and its agencies.

Union Bank’s legal team was led by Chief Adegboyega Awomolo (SAN), while the CBN was represented by Damian Dodo (SAN), Mrs. Olabisi Soyebo (SAN), and others.

Chief Awomolo argued an application to amend the Notice of Appeal, seeking to introduce eight additional grounds of appeal. The Attorney-General and the CBN’s lawyers supported the motion, while Petro Union’s legal team opposed it.

After hearing arguments from both sides, the Supreme Court reserved its ruling for a later date.

A Case Compared to P&ID Scandal

Legal experts have drawn comparisons between the Petro Union case and the infamous $10 billion Process and Industrial Development (P&ID) scandal. The judgment sum against the Federal Government, Union Bank, and the CBN has now ballooned to over £15 billion—including accrued interest—representing more than 50% of Nigeria’s foreign reserves.

The Origins of the Dispute

The case dates back to 1994 when Petro Union allegedly presented a fraudulent £2.556 billion cheque from Barclays Bank UK to Union Bank in Lagos, claiming it was for refinery construction and the establishment of a bank.

Subsequent investigations by the CBN and Union Bank revealed that the cheque, dated December 29, 1994, and drawn in favor of Gladstone Kukoyi & Associates, was confirmed by Barclays Bank to be counterfeit. Furthermore, the alleged issuer, Gazeaft Limited, was found not to have an account with Barclays Bank and was not registered as a company in the UK.

Despite these findings, Petro Union persisted with its claims, alleging that Union Bank had received £2.556 billion on its behalf and transferred £2.159 billion to the CBN while retaining £396.7 million. This led to the controversial court ruling that the Federal Government is now contesting.

Federal Government’s Appeal

The CBN and Union Bank have since appealed the judgment, citing fraudulent evidence and misrepresentation by Petro Union. Evidence presented to the Supreme Court suggests that Petro Union may have obtained the lower court judgments through alleged forgery, falsehoods, and concealment of facts.

With Nigeria already facing significant economic challenges, legal observers are closely monitoring the Supreme Court’s decision, which could have major financial implications for the nation.