… Presents documentary evidence of $1.5bn investment agreements, mining leases, and power licenses
By Rashidat O. Okunlade | Lagos
Energy and Metals Industries Limited (EMI) has issued a robust formal response to allegations circulating across media platforms concerning its Co-Founder, Dr. Innocent Ozoemena Ezuma, including claims that he defrauded a foreign investor of approximately US$120 million in connection with mining and power development projects in Nigeria.
The Company described the media portrayal of the matter as misleading, incomplete, and lacking the necessary commercial, contractual, and regulatory context. It maintains that the allegations cannot be properly assessed without examining the investment agreements executed by the parties, the corporate structure of their business relationship, the substantial work undertaken on the projects, and the judicial proceedings arising from their commercial dealings.
EMI categorically rejected the characterization of its business relationship with the foreign investment partners as a fraudulent personal financial transaction, insisting the relationship was established through formal investment and corporate agreements intended to facilitate the development of mining, energy, and industrial projects in Nigeria.
A Business Relationship Built on Formal Agreements
The Company provided a detailed timeline of its engagement with the foreign investor, tracing the relationship to a Memorandum of Understanding (MoU) executed on March 23, 2008, in Kyiv, Ukraine.
The agreement provided for the establishment and development of EMI in Nigeria with a mandate to acquire mineral exploration and extraction licenses. It contemplated an investment portfolio of up to US$1.5 billion, with approximately 20% contributed by the investor as interest-free credits.
This was complemented by a Corporate Agreement dated January 30, 2013, providing for a coal-fired power generation project at Itobe, Kogi State. EMI maintains that the allegation involving approximately US$120 million must be examined against these executed agreements and the relevant financial records.
Documented Project Milestones
EMI expressed particular concern over suggestions in some media reports that the mining and power projects were never implemented or that nothing substantial was achieved.
To counter this narrative, the Company listed significant regulatory, technical, and project-development milestones, including:
A 25-Year Mining Lease: Granted by the Federal Ministry of Mines and Steel Development for the exploration and mining of copper, gold, lead, and zinc. The lease became effective on September 10, 2014, and remains valid until September 9, 2039.
Substantial Exploration Works: Extensive activities in Kogi and Zamfara states, including 57 boreholes covering 6,025 meters, 11 trenches, 78 test pits, and 385 soil geochemical samples. These were technically reviewed by SRK Exploration Services (UK) and CSA Global (Australia).
Power Generation License: Itobe-1 Coal Power Limited obtained a NERC License for a 300MW on-grid coal-fired power generation project, effective December 2014 and renewed until September 29, 2031.
Addressing Fund Diversion and Jos Steel Mill Allegations
EMI also addressed allegations concerning the purported diversion of funds to companies and individuals associated with Dr. Ezuma, including family members.
The Company stated that business or family associations, in themselves, do not constitute evidence of financial misconduct, and that any allegations concerning specific transfers should be supported by verifiable evidence.
Regarding references to the Jos Steel mill, EMI clarified that it led the transaction team responsible for acquiring the assets of the defunct Jos Steel Rolling Company Limited in 2005, prior to the 2008 investment. It noted that persistent electricity supply challenges in Nigeria have historically constrained energy-intensive industries, forming an important part of the operational context for such projects.
The Matter is Before the Courts
EMI emphasized that the matter is already subject to ongoing judicial proceedings.
The Company noted that it was a respondent in LCIA Arbitration No. 194203 (Tooley Property Company Limited v. Energy and Metals Industries Limited), one of five arbitral awards dated January 17, 2020. Since March 2020, the Zuma companies have been challenging these awards before the High Court of the Federal Capital Territory, Abuja, in Suit No. FCT/HC/CV/001/2020, on grounds including illegality and want of jurisdiction.
“The Company has emphasised that it will not seek to litigate the merits of the dispute through the media and will allow the courts to determine the matters properly brought before them,” the statement read.
Presumption of Innocence and Call for Responsible Reporting
While acknowledging the statutory responsibility of the Economic and Financial Crimes Commission (EFCC) to investigate allegations, EMI stressed that Dr. Ezuma has not been convicted of any offence. It cited Section 36(5) of the Nigerian Constitution, which guarantees the presumption of innocence.
The Company called on media organizations to distinguish allegations from established facts, consider the executed agreements, and provide a fair opportunity for response before publishing claims.
“EMI reserves all rights and remedies available under Nigerian law in respect of any publication found to contain false, defamatory or materially misleading assertions,” the Company warned.
What To Know About Energy and Metals Industries Limited
Energy and Metals Industries Limited (EMI) is a Nigerian energy and mineral-resource development company headquartered in Abuja, with interests in solid mineral exploration and the development of indigenous energy resources.
Why It Matters
The EMI statement is a classic example of the high-stakes battle between corporate reputation and investigative journalism in Nigeria. By releasing a detailed timeline of agreements, licenses, and technical reports, EMI is attempting to move the narrative from the court of public opinion back to the courtroom.
The core of EMI’s defense rests on the distinction between a failed business venture and criminal fraud. The Company is arguing that the $120 million was part of a legitimate, though perhaps ultimately unsuccessful, $1.5 billion investment scheme to develop Nigeria’s mining and power sectors sectors notoriously difficult to operate in due to infrastructure deficits.
The legal complexities here are immense. There are multiple arbitral awards, ongoing High Court challenges to those awards, and a concurrent EFCC investigation. This web of litigation highlights the risks of doing business in Nigeria’s extractive industries, where regulatory hurdles and commercial disputes can quickly escalate into criminal allegations.
For the media, this serves as a critical reminder of the need for circumspection. In an era where headlines are driven by sensationalism, the presumption of innocence is often the first casualty. EMI is right to demand that allegations be distinguished from established facts. However, if the EFCC eventually finds evidence of criminal wrongdoing, the Company’s documentary evidence of licenses and boreholes will not protect it from the law. For now, the burden remains on the accusers to prove that the line between a bad investment and a fraudulent scheme was indeed crossed.
© ROTAMEDIANEWS Digital Newspaper & BusinessEcho Magazine by ROTA Media Concepts
For advert placement, news tips and subscription enquiries, contact the Publisher/Editor-in-Chief, Rashidat Olushola Okunlade.
rotamedianews@gmail.com businessechomag@gmail.com
08082881578-08060575197
