By Okafor Joseph Afam | December 16, 2024

Justice O.O. Oshin of the Lagos State High Court, Osborne, Ikoyi, has fixed February 6, 2025, for a Case Management Conference (CMC) in the suit filed by businessman Michael Ogbole against First City Monument Bank (FCMB). Ogbole is demanding $60,206 in unpaid commission for facilitating a financial deal allegedly brokered by him on behalf of the bank.

The court, in issuing notices, made it clear that the physical presence of all parties would be required during the conference.

In suit number LD/ADR/4635/2022, filed by Falana & Falana Chambers, Ogbole alleges that FCMB excluded him from the completion of a deal he initiated.

Background of the Case

Ogbole claims that on June 2, 2016, he held a meeting with FCMB’s Group Managing Director and Chief Executive Officer, Mr. Ladi Balogun, where he proposed to assist the bank in securing financing from Sky Enterprise LLC, a Florida-based firm specializing in trade finance and debt management.

Following the meeting, Balogun allegedly directed Ogbole to Mr. Gerald Ikem, FCMB’s Treasurer, who introduced him to Mr. Nomso Ezenta, Head of Structured Funding and Correspondent Banking, to further coordinate the proposed transaction.

According to Ogbole, on September 2, 2016, he facilitated a crucial meeting between Sky Enterprise’s Global Director for Africa, Mr. Yinka Akinlabi, and FCMB officials at the bank’s headquarters. Senior executives were reportedly present at the meeting, and the deal progressed with several follow-up emails and calls.

However, Ogbole alleges that in February 2021, he discovered that FCMB had proceeded with the transaction through Sky British, a subsidiary of Sky Enterprise LLC, without his involvement. The confirmation allegedly came from FCMB’s 2020 Annual Report and Financial Statements, which revealed the facility’s completion.

Legal Demands

On October 12, 2021, Ogbole, through his lawyers, demanded payment of $60,206.66—a 1% commission on the $6,020,660 facility secured by FCMB. Despite a follow-up demand on January 19, 2022, the bank allegedly refused to honor the request.

Ogbole seeks the following reliefs:

1. A declaration that FCMB’s refusal to pay constitutes a breach of contract.
2. An order directing FCMB to pay $60,206.66 with 21% interest accrued since December 31, 2020.
3. N20 million as general and exemplary damages.
4. N5 million for the cost of the suit.

FCMB’s Defense

In response, FCMB, through its counsel, Professor Wale Olawoyin (SAN), described the suit as a “gold-digging exercise”, labeling Ogbole’s claims as vexatious and without merit. The bank has urged the court to dismiss the case with substantial costs.

FCMB acknowledges initial contact with Ogbole, where he proposed facilitating offshore financing. However, the bank asserts that while discussions were held, Ogbole and his partner, Mr. Yinka Akinlabi of Sky Enterprises LLC, lacked the necessary “capacity, experience, and understanding” to execute the transaction.

The bank maintains that no commitment or agreement was made to pay Ogbole any commission, as his role in the process was neither formalized nor essential to the deal’s success.

Next Steps

With the case now fixed for a Case Management Conference on February 6, 2025, both parties will have the opportunity to present preliminary evidence, define issues for trial, and outline the road map for the proceedings.

The Lagos business community is closely watching this case, as its outcome may have broader implications for contractual obligations and intermediary agreements in the financial sector.