$64M Contract Dispute: Nigerian Firm Seeks Supreme Court Review Over Judgment Favoring Zenith Bank
Nigerian company Owigs and Obigs Nigeria Limited has called on the Supreme Court to revisit its decision absolving Zenith Bank Plc of liability in a $64 million international contract dispute. The firm alleges that the judgment undermines the integrity of the nation’s legal system, raises concerns for investors, and tarnishes Nigeria’s global reputation.
In an appeal concerning case number SC/CV/709/2020, the company claims the Supreme Court misinterpreted key terms of the contract and the bank’s obligations under a confirmed Letter of Credit. Owigs and Obigs accuse the court of disregarding evidence, distorting established legal principles, and issuing a verdict that contradicts international trade standards.
In an open letter to the Senate Committee on Judiciary dated January 21, 2025, signed by Emeka D. Okorie, the company expressed shock over the court’s decision. “The judgment contradicts established facts, distorts reality, and absolves Zenith Bank despite its admission of breaching the international contract,” the letter stated.
Key Allegations by Owigs and Obigs, include:
Erroneous Rulings: The Supreme Court allegedly dismissed the original contract terms, reversing roles and undermining the autonomy of the buyer-seller agreement.
Legal and Ethical Concerns: The judgment is described as “fraudulent” for favoring the breaching party and disregarding evidence, making a “mockery” of international trade practices.
Economic Ramifications: The firm warns that the verdict signals to global investors that Nigeria and its banks are unsafe for business, potentially deterring economic development.
The dispute arose from two contracts brokered in 2014 for the supply of tin ore, columbite, and tantalite to Chinese buyers. Owigs and Obigs claim the deals fell through due to Zenith Bank’s failure to confirm letters of credit issued by the buyers’ bank, the Industrial and Commerce Bank of China (ICBC). The cancellations led to penalty fees deducted from the company’s accounts.
Owigs and Obigs have petitioned the Senate to urge the judiciary to act on their appeal to the Chief Justice of Nigeria, submitted on December 10, 2025. They seek a reversal of the judgment, arguing that the ruling disregards Nigeria’s obligations under international trade treaties and the Uniform Customs and Practice for Documentary Credits (UCP 600).
The company insists that the Supreme Court’s decision creates a “false irrevocable documentary letter of credit” that contravenes trade protocols, substituting non-parties into the contract and absolving Zenith Bank of its acknowledged breach.
By allegedly rewriting the contract terms and shielding the bank from liability, the judgment has “legalized illegality,” Owigs and Obigs argue. They maintain that this sets a dangerous precedent, undermining trust in Nigeria’s legal and financial systems.
No official response has been issued by Zenith Bank or the judiciary. The case continues to draw attention from stakeholders, with no hearing date yet announced for the company’s appeal.
