Appeal Court Upholds Sahara Power's Legal Challenge

The Appeal Court delivered a unanimous decision on Monday, affirming an interim injunction against banks and upholding Sahara Power Group's right to challenge the receivership. The court dismissed an appeal filed by a consortium of financial institutions against Sahara Power, which included KEPCO Energy Resource Limited, NG Power HP Limited, and New Electricity Distribution Company Limited.

The banks had appointed a receiver, which Sahara Power contended was premature and unjustified, breaching the agreement conditions. The court found that the company did not need to obtain consent from the receiver to institute legal action.

Justice Joseph Eyo Ekanem led the judgment, emphasizing that the trial court had raised serious triable issues regarding the alleged debt and the conditions preceding the receiver's appointment. The Appeal Court directed that the substantive suit be heard on a daily basis, reinforcing the need to maintain the status quo to prevent asset dissipation.