Energy & Metals Industries Rejects Fraud Allegation Against Co-Founder, Ezuma

Energy and Metals Industries Limited (EMI) has rejected allegations that its co-founder, Dr Innocent Ozoemena Ezuma, defrauded a foreign investor of about $120 million, insisting that its mining and power projects recorded significant regulatory, technical and development milestones under formal investment agreements.

The company, in a statement issued in Abuja on November 3, 2026, described media reports on the allegations as misleading and incomplete, saying they failed to reflect the contractual, corporate and regulatory framework governing the investment relationship.

EMI said its relationship with the foreign investment partners began with a Memorandum of Understanding (MoU) signed in Kyiv, Ukraine, on March 23, 2008, for the establishment and development of the company in Nigeria.

According to the company, the agreement provided for the acquisition of mineral exploration and extraction licences and the development of facilities for mineral production and processing.

It said the MoU contemplated an investment portfolio of up to $1.5 billion, with approximately 20 per cent expected from the investor through interest-free credits, while the balance would be sourced from independent financial institutions.

The arrangement was subsequently complemented by a Corporate Agreement dated January 30, 2013, covering the development of a coal-fired power generation project at Itobe, Kogi State.

EMI rejected the characterisation of the relationship as a straightforward case of personal indebtedness or misappropriation by Ezuma, arguing that the $120 million allegation should be assessed against the executed agreements and relevant financial and corporate records.

On its mining projects, the company said the Federal Ministry of Mines and Steel Development, now the Ministry of Solid Minerals Development, granted reconnaissance permits, exploration licences and mining leases covering copper, gold, lead and zinc.

It disclosed that one of the mining leases became effective on September 10, 2014, and remains valid until September 9, 2039.

EMI said exploration activities at its Kogi project included 57 boreholes covering 6,025 metres, 11 trenches totalling 970 metres and 78 test pits, alongside geological mapping and geophysical surveys.

In Zamfara, the exploration programme involved geological mapping, 385 soil geochemical samples, geophysical surveys, trench investigations and shallow prospect workings, resulting in a preliminary inferred gold resource estimate.

The company added that the exploration programmes underwent technical reviews by SRK Exploration Services of the United Kingdom and CSA Global of Australia, including assessments of sampling procedures and quality assurance protocols.

However, it acknowledged that a 2015 study identified additional drilling, metallurgical testing, environmental assessments and comprehensive feasibility studies as necessary steps before a final investment decision.

On the power project, EMI said Itobe-1 Coal Power Limited obtained a Nigerian Electricity Regulatory Commission (NERC) licence to develop a 300-megawatt on-grid coal-fired power plant.

The licence became effective in December 2014 and was subsequently renewed until September 29, 2031. The company maintained that the mining approvals, exploration activities and power generation licence demonstrated that the projects had progressed beyond the conceptual stage.

Addressing allegations of diversion of investment funds to companies and individuals allegedly associated with Ezuma, including members of his family, EMI said such claims required comprehensive examination of the transactions, their commercial purposes and supporting financial records.

It argued that business or family associations did not, in themselves, constitute evidence of financial misconduct.

The company also clarified references to the defunct Jos Steel Rolling Company Limited, saying EMI led the transaction team responsible for acquiring the company’s assets in 2005, three years before the investment relationship with Sergey was formalised.

According to the statement, Zuma Steel West Africa Limited acquired the assets from the Federal Government through a court-supervised liquidation process guided by the Bureau of Public Enterprises (BPE), subsequently executing an Asset Purchase Agreement.

EMI attributed some operational challenges confronting large-scale mining, mineral processing and steel production to Nigeria’s inadequate electricity supply, saying unreliable and expensive power had affected production efficiency, operating costs and industrial competitiveness.

On the legal dispute, EMI disclosed that it was a respondent in London Court of International Arbitration (LCIA) Arbitration No. 194203, involving Tooley Property Company Limited and EMI, which formed part of five arbitral awards dated January 17, 2020.

It said the Zuma companies had, since March 2020, challenged the awards before the High Court of the Federal Capital Territory, Abuja, in Suit No. FCT/HC/CV/001/2020, on grounds including illegality, misconduct and lack of jurisdiction.

Separate enforcement applications were also filed in Suit Nos. FCT/HC/CV/1811 to 1815/2022, seeking recognition and enforcement of the awards. EMI and its associates said they had opposed the applications.

The company said it would allow the courts to determine the dispute, stressing that commercial disagreements, arbitral awards and allegations of criminal wrongdoing should not be conflated.

On the Economic and Financial Crimes Commission (EFCC) investigation, EMI acknowledged the commission’s statutory responsibility to investigate financial and economic crimes, saying Ezuma remained willing to cooperate with lawful requests from relevant authorities.

However, it cautioned against presenting allegations under investigation as established findings of guilt, noting that Ezuma had not been convicted of any offence in connection with the matter.

Citing Section 36(5) of the 1999 Constitution, as amended, the company said the presumption of innocence must be respected.

EMI urged media organisations to distinguish allegations from facts established by courts, consider the investment agreements, corporate structure and project records, and provide affected parties a fair opportunity to respond.

It also urged the public to avoid premature conclusions while the legal processes continued, warning that it reserved its rights under Nigerian law against publications containing false, defamatory or materially misleading assertions.