Court Rules on Receiver/Manager's Authority in Litigation

On April 13, 2026, the Court of Appeal in Lagos, presided over by Justices Joseph Eyo Ekanem, Danlami Zama Senchi, and Uwabunkeony Onwosi, evaluated whether a receiver/manager could act when their appointment is under litigation. The case involved a loan facilitation agreement amounting to $278,000,000, executed on May 23, 2013, and subsequently amended on December 31, 2019.

A dispute arose regarding the appointment of a receiver/manager, leading the respondent to file a writ in the Federal High Court on June 19, 2025, seeking various declaratory and injunctive reliefs. The trial court granted an interim injunction on June 24, 2025, restraining the appellant from appointing a receiver pending the determination of the motion.

The appeal was heard on July 22, 2025, where the trial court's jurisdiction was contested. Ultimately, the court dismissed the appellant's motion, affirming the trial court's authority and the validity of the receiver's actions under the Companies and Allied Matters Act (CAMA) 2020.