- Ziklagsis Network Ltd has sued the Federal Government and Ministry of Power, seeking N39.1 billion in recovery and N1.1 billion in damages over a metering project loan.
- The company alleges interference and misappropriation of funds, while the government and other defendants deny the claims and argue the contract was fulfilled.
Ziklagsis Network Ltd, a metering company, has filed a lawsuit against the Federal Government, the Ministry of Power, and four other defendants, seeking N39.1 billion in recovery for a metering project and N1.1 billion in damages and costs for the legal action. The suit, filed at the Abuja Division of the Federal High Court, alleges interference with its project and misappropriation of funds allocated to supply electric meters in Nigeria.
Ziklagsis claims that the Federal Government and the Ministry of Power had no right to seize or divert the N39,171,985,233.95 loan granted for the project under the terms of an agreement on August 28, 2017. The company argues that the interference, exacerbated by the COVID-19 pandemic, was an attempt to frustrate the execution of the project, which was awarded to it with a seven-year repayment term.
The company’s lawyer, Chief Wole Olanipekun, SAN, further contends that despite receiving approval and the loan for the project, the government and the Ministry of Power obstructed efforts to carry out the project by withholding funds.
In response, the Federal Government and the Ministry of Power argue that they acted according to the agreement. Providus Bank, which holds the funds, denies any knowledge of the specific terms of the contract and describes Ziklagsis’ claims as misleading. Meanwhile, another defendant, De-Haryor Global Services Ltd, claims that the lawsuit was filed in bad faith and asserts that Ziklagsis failed to fulfil its obligations under the contract.
De-Haryor’s lawyer, Marcus Abu, argues that Ziklagsis never invested in the project and instead deposited the contract sum in a fixed deposit account, showing no intention to use the funds for the intended purpose. He further asserts that the government had already fulfilled its obligations by providing the full contract amount.
The case, which involves disputes over the execution of a metering project intended to alleviate Nigeria’s energy billing challenges, has been adjourned by Justice James Omotosho. The next hearing is scheduled for February 4 2025.