1 December 2012

Nigeria: Capital Oil Forfeiture - Court Rules December 11

Justice Abdul Kafaratu of the Federal High Court, Abuja yesterday reserved ruling on an application to set aside its order of November 13, which granted the Asset Management Corporation of Nigeria (AMCON) immediate possession of properties belonging to Capital Oil and Gas Industries Limited and its managing director, Mr. Ifeanyi Ubah.

Justice Kafarati adjourned till December 11th for ruling after counsel had adopted their addresses.

Counsel to Uba, Wole Olanikpekun (SAN), prayed the court to set aside the order earlier made, saying it will be in the interest of general public.

He also said Capital Oil was the second largest supplier of fuel across the country, as such the forfeiture will have a negative impact on a large number of the society.

He further argued that AMCON was yet to commence the debt recovery action which is meant to be within 14 days from the date of the order.

Counsel to AMCON, Kemi Balogun, who prayed the court to strike out the application informed the court about a report of an inspection agency jointly set up by parties in the suit which showed that "the defendant has only 21 million litres of fuel in its tank, which is just enough to last Lagos State only one day."

Olanipekun had prayed the court to grant his client access to 50 percent of the credit balance in some of his accounts with the United Bank of Africa so as to allow him pay salaries and attend to personal needs.

The court said the defendants could withdraw 25 percent of the amount disclosed by UBA in its affidavit.

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