The Federal High Court in Lagos has scheduled a hearing for October 21, 2024, to address pending applications in a legal dispute between Barbican Capital Limited and First Bank of Nigeria Holdings Plc. The case involves a contested N5.4 billion worth of shares.
Justice Ayokunle Faji adjourned the case after hearing an application from Kunle Ogunba (SAN), representing Ecobank Nigeria, seeking to join the ongoing lawsuit. The plaintiff, Barbican Capital Limited, was represented by Bode Olanipekun (SAN), while FBN Holdings’ defense was led by Babajide Koku (SAN). The Central Bank of Nigeria (CBN), also a party to the suit, was represented by Hakeem O. Afolabi (SAN).
Background and Proceedings
The case stems from Barbican Capital’s claim that it had acquired approximately 5.4 billion shares in FBN Holdings, amounting to 15.1% of the bank’s total shares listed on the Nigerian Stock Exchange. However, Ecobank has opposed this acquisition, alleging that Barbican Capital used funds diverted from the sale of Honeywell Flour Mills shares to Flour Mills of Nigeria Plc to purchase the FBN shares. Ecobank further claims that these funds were owed to it by Honeywell companies, following a Supreme Court ruling in the bank’s favor.
During the court session, Afolabi (SAN) confirmed that the CBN had filed its defense, albeit slightly late, and requested an extension of time to regularize the filing. The court granted the request without objection from the other parties.
Ecobank’s counsel, Ogunba (SAN), informed the court of his client’s intention to join the case and file additional affidavits in response to Barbican Capital’s counter-claims. Justice Faji, however, indicated that all current parties needed to regularize their filings before hearing the joinder application.
Potential Recusal
Ogunba also announced Ecobank’s intention to file a motion requesting Justice Faji to recuse himself from the case. This led to a debate, with Olanipekun (SAN) arguing that the issue of recusal had not been included in the original joinder application. Justice Faji stated that the court would not proceed with the main case until the recusal matter was addressed and granted Ogunba time to file the relevant motion.
Next Steps
The court adjourned the case to October 21, 2024, to hear the pending applications, including Ecobank’s request to join the case and the motion regarding the judge’s potential recusal.
This high-profile dispute highlights a larger financial controversy involving Barbican Capital, its affiliates in the Honeywell Group, and Ecobank, with significant implications for shareholder control and financial settlements.
