By Lukman Olabiyi
Justice Daniel Osiagor of the Federal High Court in Lagos has modified a Mareva injunction in the dispute between Ecobank Nigeria Plc and Kam Industries Nigeria Limited over an alleged $9.5 million credit facility.
The court granted Kam Industries a one-time release of N500 million to pay outstanding salaries for over 4,000 employees nationwide.
The original Mareva injunction, issued on Monday, October 7, 2024, froze assets across 25 banks and financial institutions linked to the defendants—Kam Industries, Dr Kamoru Yusuf, and Kamsteel Integrated Company—pending the resolution of the main suit (FHC/L/CS/1748/2024). The variation followed a Motion on Notice filed by Chief Afolabi Fashanu (SAN), Kam Industries’ lead counsel, seeking limited access to funds.
The motion was brought under Orders 26 Rule 10(1)–(3) and 28 Rule 1(1)(3) of the Federal High Court (Civil Procedure) Rules 2019, Sections 6(6) and 36 of the 1999 Constitution (as amended), and the court’s inherent jurisdiction. Justice Osiagor ruled that the court had authority to hear the application, stressing the need to keep the company operational, preserve jobs, and protect injured workers. He urged both parties to seek an amicable settlement and report back.
Ecobank’s counsel, Mr Kemi Balogun (SAN), noted a filed Notice of Appeal and Stay of Proceedings, challenging the court’s jurisdiction. He argued that since the Originating Summons was heard and adjourned to Wednesday, June 4, 2025, for ruling, the case could not be relisted without an application for abridgment of time. Chief Fashanu countered that the court had inherent jurisdiction and that the hearing notice was standard practice.
In a bench ruling, Justice Osiagor approved the N500 million disbursement. Kam Industries supported the motion with a 28-paragraph affidavit by Olumide Abdulkareem, Executive Director of Global Business Development and Legal, invoking the Doctrine of Necessity.
The affidavit noted the injunction’s impact, crippling salary payments, gas purchases for production, and electricity bill settlements, risking strikes and utility disconnections. Abdulkareem warned that without relief, Kam Industries and its affiliates faced imminent collapse.
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