‘Capital Oil reached non-political resolution with AMCON’

Sopuruchi Onwuka

One of Nigeria’s fastest oil marketing companies, Capital Oil and Gas Industries Limited, is on its way out of the woods after reaching consent judgment with the Asset Management Company of Nigeria (AMCON) over the loan disputes that grounded the company and cost loss of thousands of jobs in the domestic economy.

A fact sheet from the lawyers of Capital Oil, TRLPLAW, made available to The Oracle Today showed that amicable settlement on the dispute was reached in January 2022 and was approved by the Central Bank of Nigeria (CBN) and Federal Ministry of Finance.

Following the settlement of the disputes by all parties and the subsequent consent judgment entered at the Federal High Court Abuja, the Lagos High Court dismissed all charges leveled against Capital Oil and its Chairman, Dr Patrick Ifeanyi Ubah.

The Lagos High Court, it was gathered, had brought up the case on October 18, after the Courts’ vacation and was formally informed of the resolution of the dispute and the undertaking of parties to discontinue all cases.

According to the fact sheet on the matter, all the charge filed by government against the company and its leaders was dismissed.

Partner at TRLPLAW, Mrs. Ifeoma Esom, clarified in the fact sheet which detailed developments on the matter that the Federal High Court, Lagos, which had been hearing the charge had granted several adjournments to give room for ongoing efforts to reach a commercial resolution of the dispute.

She said the legal teams representing government had failed to withdraw the charge against Capital Oil due to commencement of Court vacation. And, consequently, Federal High Court in Lagos was not notified in good time that the settlement on the natter had long been concluded.

“Following the end of the Courts’ vacation and the (Lagos) Court was formally informed of the resolution of the dispute and the undertaking of parties to discontinue all cases in furtherance of the consent judgment entered at the Federal High Court Abuja, whereupon the Charge was dismissed,” Mrs Esom stated.

It would be recalled that the dispute had led to several court cases in which criminal charge was filed against Capital Oil and Gas and Senator Patrick Ifeanyi Ubah following commercial transactions with various banks in whose stead AMCON acted upon acquisition of the company’s operating facilities.

The parties had in 2013 entered into a consent judgment which subsequently led to various litigations by AMCON and Capital Oil at various times.

“During the pendency of these cases and appeals, several efforts were made toward the resolution of the dispute resulting in an amicable settlement reached in January 2022 which was approved by the Central Bank of Nigeria and Federal Ministry of Finance during the administration of President Mohammed Buhari.

“In furtherance of the settlement, a consent judgment was subsequently entered into at the Federal High Court Abuja wherein parties agreed that all cases and appeals filed by Senator Patrick Ifeanyi Ubah and Capital Oil and Gas against AMCON would be withdrawn and all Cases and Appeals by AMCON against Capital Oil & Gas and Senator Patrick Ifeanyi Ubah be also withdrawn,” Mrs Esom buttressed.

In dismissing all political nuances following the recent defection of Senator Ifeany Ubah from the Young Progressive Party (YPP) to the ruling All Progressive Congress (APC), Mrs clarified that “at all material times,” Senator Ifeanyi Ubah was a member of the YPP and had no affiliation with the past administration of former President Muhammadu Buhari.

“It is pertinent to note that at all material times when the dispute was ongoing and until it was resolved, Senator Patrick Ifeanyi Ubah was not a member of the All Progressives Congress but the Central Bank and Ministry of Finance in the last administration adopted a commercial disposition to the commercial transaction and resolved it.

“AMCON is an apolitical financial institution and no political consideration came to bear in the amicable resolution. Rather AMCON, Central Bank, and the Federal Ministry of Finance pursuant to their mandate restructured the facility which involved amongst others, Capital Oil and Gas making some payments to AMCON.”

“It is pertinent to reiterate that Senator Patrick Ifeanyi Ubah’s movement to the All Progressives Congress has nothing to do with the resolution of the hitherto lingering dispute with AMCON and the dismissal of the criminal charge against Capital Oil & Gas and Senator Patrick Ifeanyi Ubah,” she declared in the fact sheet.