BY OUR CORRESPONDENT
Kaduna
The Company Secretary of EM-International Systems (EMIS) Nigeria Limited, Mr. Chidozie Nwandu, has confirmed allegations by two investors that First City Monument Bank (FCMB) is holding funds belonging to the telecommunications firm.
Nwandu made the confirmation during an executive media briefing made available to journalists in Kaduna on Sunday, March 15, 2026.
He explained that the dispute dates back to 1994 when the founder of EMIS, Mr. Emeka Onwuegbuzia, a Nigerian-American, returned to Nigeria after more than 20 years in the United States to establish a telecommunications company.
According to him, Onwuegbuzia had previously worked with major American corporations including Rockwell International and Northrop Grumman Corporation before setting up EM-International Systems (EMIS Telecoms) Limited as one of the pioneer indigenous fixed wireless telephone companies based in Lagos.
Nwandu said the company had already begun operations with thousands of subscribers before seeking financial support to expand its network.
“EMIS approached the African Export-Import Bank (AFREXIM) in Cairo, Egypt, for a $5 million loan facility to purchase Phase II telecommunications equipment for network expansion,” he said.
However, AFREXIM reportedly informed the company that since EMIS had not operated for up to five years, it could only access the facility through a local correspondent bank and recommended FCMB for that role.
He said EMIS subsequently entered discussions with FCMB and both parties agreed that the bank would act as lender to EMIS and guarantor to AFREXIM for the loan facility.
According to him, both parties signed a loan agreement which required EMIS to execute an all-assets debenture in favour of FCMB and to domicile all revenue from its subscribers with the bank as the sole collecting institution.
The agreement also authorised FCMB to make disbursements from the AFREXIM facility, while EMIS was required to issue eight promissory notes valued at $500,000 each to COMDEV International of Canada, the equipment supplier.
Nwandu said EMIS further agreed that $140,000 would be deducted from the loan as FCMB’s facility management fee, while $280,000 would be paid to AFREXIM as its management fee.
He explained that after the deductions, the amount available for the purchase, installation and activation of the telecommunications equipment stood at $4.58 million.
He added that FCMB, AFREXIM and COMDEV later entered into a tripartite note purchase agreement detailing how the funds would be paid to the equipment supplier.
However, he alleged that EMIS was excluded from the agreement despite being the beneficiary of the loan.
Nwandu further alleged that FCMB transferred the entire $4.58 million to COMDEV International within 24 hours of signing the agreement, despite conditions requiring evidence of regulatory approvals, including those from the Central Bank of Nigeria (CBN).
He said the equipment supplier allegedly failed to deliver the telecommunications equipment after receiving the funds.
“After FCMB paid out the entire loan sum of $4.58 million to COMDEV International, the company absconded with the money and never supplied the telecommunications equipment,” he said.
According to him, EMIS subsequently raised concerns with both AFREXIM and FCMB over the failed transaction, particularly as the supply agreement required the Phase II network to become operational within 120 days.
He said when no action was taken against the supplier, EMIS filed a lawsuit against FCMB to recover funds in the bank’s custody and seek damages for losses incurred.
Nwandu said the company also petitioned the Central Bank of Nigeria after alleging delays in the court process.
He said the CBN later set up a team of investigators who visited both EMIS and FCMB offices in Lagos and reviewed relevant documents relating to the transaction.
According to him, the findings were contained in a CBN report dated July 10, 2012.
He said the report noted that FCMB failed to process a Certificate of Capital Importation (CCI) for the foreign loan, as required under the CBN foreign exchange manual.
The report also stated that FCMB’s foreign exchange dealership licence had been suspended at the time of the transaction.
According to the EMIS secretary, the report further stated that the bank breached regulatory guidelines by using another bank to access the foreign exchange market without obtaining approval from the CBN.
He said the report concluded that FCMB breached its fiduciary duty to its customer in the handling of the transaction.
Nwandu said the CBN directed the bank to account for and refund N574,401,405.02 received as subscription fees from EMIS subscribers, provide the company with its account statements, reverse upfront charges and pay interest on investments made with the funds.
He added that the regulator also directed FCMB to tender a written and unconditional apology to EMIS.
According to him, efforts by EMIS to get the CBN to enforce the directives did not yield results, prompting the company to petition the presidency at the time.
He said the matter was subsequently referred by former President Muhammadu Buhari to the then Attorney-General of the Federation, Abubakar Malami (SAN), for further action.
Nwandu said EMIS accountants had continued to track the financial liabilities based on figures from the CBN report and statements provided by FCMB.
He added that the company’s accountants’ report dated February 14, 2025, placed the total amount owed by the bank as of December 31, 2024.
