Ecobank Nigeria Limited has issued a stern warning to nine commercial banks, cautioning them not to release or interfere with N500m currently frozen under a court-ordered Mareva injunction.
The bank warned that any such move could be considered contempt of court.
In a letter dated June 8, 2025 and signed by its counsel, Mr. Oluwakemi Balogun (SAN), Ecobank reminded the banks that the funds form part of the ongoing appeals before the Court of Appeal and the Supreme Court concerning a debt dispute with Kam Industries Nigeria Limited.
“We urge you to refrain from taking any step that could undermine the authority of the court or interfere with funds that have been judicially restrained,” Balogun stated.
“You are hereby forewarned of the legal consequences that may arise should you interfere with or release any part of the funds deposed to in your affidavit of compliance,” he said.
The letter, titled “Formal Notification and Demand for Preservation of Funds Pending Appeals”, was addressed to the managing directors of Access Bank, Sterling Bank, Guaranty Trust Bank, Jaiz Bank, Keystone Bank, Premium Trust Bank, Fidelity Bank, Suntrust Bank, and Wema Bank.
According to Ecobank, the N500m currently held in these banks is part of a larger debt allegedly owed by Kam Industries, which the bank claims exceeds N7bn.
Ecobank referenced a ruling delivered by Justice Osiagor of the Federal High Court on October 7, 2024, which granted a Mareva injunction restraining Kam Industries and its affiliates from dissipating their assets.
The court also directed all Nigerian commercial banks to disclose and freeze any assets held on behalf of the defendants.
Ecobank explained that on April 9, 2025, the court heard an application to discharge the Mareva injunction along with the originating summons and reserved its judgment for June 4, 2025.
However, before the reserved judgment was delivered, the trial court issued a hearing notice on a fresh application by Kam Industries seeking to vary the injunction.
Ecobank described this as “procedurally irregular” and filed an interlocutory appeal (CA/LAG/PRE/ROV/CV/461M/2025), alleging that the trial court was attempting “to arrest its judgment.”
Despite the pending appeals, the court went ahead and varied the injunction, ordering the release of N500 million to Kam Industries.
Ecobank expressed strong disapproval of this decision, noting that it had filed additional appeals, including one for a stay of execution (CA/LAG/PRE/ROA/CV/519M/2025) and a substantive appeal (CA/LAG/L/643/2025).
It also revealed that the Court of Appeal dismissed its challenge to the hearing notice on July 1, 2025, describing it as “a non-appealable decision.”
The bank has since taken the matter to the Supreme Court, where it said the record of appeal is being compiled.
Ecobank insisted that despite the lower court’s order to release the funds, the Mareva injunction remains in force.
“Lifting the ‘Place No Debit’ order at this stage would foist a fait accompli on the appellate courts,” Balogun warned.
“It would also risk rendering the entire judicial process ineffective.”
Citing judicial precedents such as Ojukwu v. Military Governor of Lagos State (1985) and F.A.T.B Ltd v. Ezegbu (1992), Ecobank emphasised that no party may take steps that could undermine or preempt a pending court decision.
“It is settled law that once a party is aware that an injunction is being sought or is pending, it is bound not to take steps that would overreach the court or render its eventual decision nugatory,” the letter stated.
Ecobank concluded its correspondence and warned that, “Any move to unfreeze or release the restrained funds would be deemed an attempt to preempt the court’s authority, and may attract serious legal consequences.”
The bank urged all nine banks to act with caution and in full compliance with judicial directives, saying it would hold them responsible for any breach.
“We continue to assure you of our esteemed professional regards,” the letter concluded.
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