Justice Daniel Osiagor of the Federal High Court, Lagos, has restrained the House of Representatives and the chairman, Committee on Public Petitions, Hon. Michael Etaba, from further investigation or inviting Sterling Bank Limited.
Justice Oshodi also barred the lawmakers from investigating the group chief executive officer of Sterling Financial Holdings Company, Yemi Odubiyi.
The judge held that the injunction shall remain in effect pending the hearing and determination of a Motion on Notice for an interlocutory injunction related to a debt recovery of $17,079,000.00.
The court granted the order after entertaining arguments from Funmi Falana (SAN), who represented the applicants.
During the proceedings, Falana also applied to include the fifth defendant, the Inspector-General of Police, in the order.
The applicants in the case, marked as FHC/L/L/CS/185/2025, include Sterling Bank Limited, Sterling Financial Holdings Company Plc, Yemi Odubiyi, Abubakar Suleiman, Lekan Olakunle, and Dele Faseemo.
The defendants are the House of Representatives, Hon. Michael Etaba, Dr Innocent Brendan Usoro, Miden Systems Limited, and the Inspector-General of Police.
The court order states, “An Order of Interim Injunction restraining the 1st and 2nd defendants, whether by themselves, agents, servants, privies, or any other person, from further inviting or investigating the plaintiffs, pending the hearing and determination of the Motion on Notice for an interlocutory injunction.”
In a 31-paragraph affidavit supporting the ex parte motion, deposed to by head of Recovery Litigation for the 1st and 2nd Plaintiffs, Sunday Adegoke, it was affirmed that a banker-customer relationship has existed between the 1st Plaintiff and the 3rd and 4th defendants (Dr. Innocent Brendan Usoro and Miden Systems Limited) since 2009.
The 3rd Defendant obtained a Vessel Lease Facility of $17,079,000.00 from the bank with a term of 48 months, which included a 6-month moratorium on principal and interest repayments.
However, the 3rd and 4th defendants’ failure to meet their debt obligations led to the restructuring of this facility for an additional five years, from 2017 to 2022.
The deponent asserted that, without the plaintiff’s knowledge, the funds allocated to the 3rd and 4th defendants were misappropriated for personal use rather than the intended purpose.
During inspections of the NBTC Yard in Warri and the Forcados Terminal in Delta State on October 23 and 24, 2023, it was discovered that many of the vessels financed by the 1st plaintiff, which were used as collateral for the facility, were in disrepair due to intentional and fraudulent actions by the 3rd defendant.
The 1st plaintiff also found that additional funds provided to the 3rd defendant to revitalise the 4th defendant’s operations had been fraudulently diverted for personal use.
Due to the 3rd and 4th defendants’ default on the loan, a recovery action was initiated against them in the Federal High Court of Lagos, marked as Suit No. FHC/L/CS/946/2021. A Mareva injunction was subsequently obtained against the 3rd and 4th defendants.
This case resulted in a Consent Judgment, in which the defendants admitted liability to the 1st Plaintiff for $31,335,636.88
Despite their admission of liability, the 3rd and 4th defendants, with no intention of fulfilling their obligations under the Facility Agreement and Terms of Settlement, initiated “vexatious/abusive proceedings” in Suit No. FHC/L/CS/54/2024, seeking to amend the Terms of Settlement established in Suit No. FHC/L/CS/946/2021.
Furthermore, although the matter was sub-judice, the 3rd and 4th defendants submitted multiple petitions to the National Assembly’s House of Representatives Committee on Public Petitions, making various allegations against the Plaintiffs, including unlawful deductions and money laundering.
Consequently, the plaintiffs were invited to appear before the
Committee on Public Petitions on February 5, 2025.
The deponent further stated that despite the plaintiffs’ assertion that the matter is sub-judice, the 1st and 2nd defendants insisted that the allegations under investigation were criminal in nature. They referred the case to the Force Criminal Investigation Department (the 5th defendant) for investigation and a report to be submitted to the House Committee.
Following this directive, operatives of the 5th defendant reportedly harassed the plaintiffs and their officials, disrupting the operations of the 1st Plaintiff.
On December 9, 2024, before a scheduled hearing on December 11, 2024, an executive of the 1st Plaintiff, Dele Faseemo, was abducted by operatives of the 5th defendant.
The deponent argued that the 1st and 2nd defendants lack the authority to summon or invite private individuals or corporate representatives to appear before them or their committees for investigations.
Furthermore, he stated that the ongoing investigation of a sub-judice matter should have been referred to the court rather than aired on Arise Television on January 26 and 27, 2025.
The matter has been adjourned till February 21, 2025, for the Motion on Notice hearing.
The Federal High Court’s latest ruling effectively safeguards Sterling from further undue legislative probes and harassment and reaffirms that the House of Representatives lacks the authority to override court verdicts or interfere in private financial disputes already resolved through due legal process.
This decision is a crucial victory for corporate governance and the protection of financial institutions from undue political interference, setting a significant legal precedent in Nigeria’s banking and legislative landscape.
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