Company insists that recent media reports misrepresent a longstanding commercial and investment relationship. The Company points to documented project milestones and reiterates the need for fairness, accuracy and due process, cautioning against the use of false allegations to unjustly damage reputations.
Energy and Metals Industries Limited (EMI) has issued a formal response to allegations circulating across various 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 describes 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 rejects the characterization of its business relationship with the foreign investment partners as a fraudulent personal financial transaction. According to the Company, the relationship was established through formal investment and corporate agreements intended to facilitate the development of mining, energy and industrial projects in Nigeria.
The Company considers it important that the facts and documentary records surrounding the relationship are brought into the public domain to provide a balanced understanding of the issues.
A BUSINESS RELATIONSHIP ESTABLISHED THROUGH FORMAL INVESTMENT AGREEMENTS
The business relationship dates back to a Memorandum of Understanding (MoU) executed on 23 March 2008 in Kyiv, Ukraine. The agreement provided for the establishment and development of Energy and Metals Industries Limited in Nigeria, with a mandate to acquire mineral exploration and extraction licenses and develop facilities for mineral production and processing.
The MoU contemplated an investment portfolio of up to US$1.5 billion, with approximately 20 per cent of the proposed investment to be contributed by the investor in the form of interest-free credits, while the balance was expected to be sourced from independent financial institutions. It also provided for equal participation in the Company’s capital by the authorized representatives of the founders.
This arrangement was subsequently complemented by a Corporate Agreement dated 30 January 2013, which provided for the development of a coal-fired power generation project at Itobe, Kogi State.
EMI maintains that these agreements are fundamental to understanding the nature and purpose of the transactions between the parties. They established a corporate investment and project-development framework involving shareholder participation, capital commitments and the development of strategic industrial assets in Nigeria.
Consequently, the Company disputes the portrayal of the relationship as a straightforward case of personal indebtedness or the misappropriation of funds by Dr. Ezuma. It further maintains that the allegation involving approximately US$120 million must be examined against the executed agreements, the agreed investment structure and the relevant financial and corporate records.
DOCUMENTED PROJECT MILESTONES DEMONSTRATE SUBSTANTIVE DEVELOPMENT
EMI is particularly concerned about suggestions in some media reports that the mining and power projects were never implemented or that nothing substantial was achieved despite the investment relationship.
The Company states that such suggestions overlook significant regulatory, technical and project-development milestones recorded over several years.
1. A 25-Year Mining Lease
The Federal Ministry of Mines and Steel Development (now Ministry of Solid Minerals Development) granted reconnaissance permits, Exploration Licenses and Mining Leases respectively, for the exploration and mining of copper, gold, lead and zinc.
The lease became effective on 10 September 2014 and remains valid until 9 September 2039.
The grant of these permits, licenses and leases, represents a significant regulatory milestone in the development of the Company’s mineral-resource portfolio.
2. Substantial Exploration and Technical Works at the Kogi and Zamfara Projects.
The Projects underwent extensive explorations and technical resource evaluations during those periods, culminating in Technical Reports, Mineral Resource Estimates and Pre-Project Feasibility Studies.
The exploration programs documented:
KOGI
57 boreholes covering a total of 6,025 meters;
11 trenches covering 970 meters;
78 test pits;
Geological mapping and geophysical surveys.
ZAMFARA
In Zamfara, we had extensive exploration activities which included;
Geological mapping,
385 soil Geo chemical Samples,
Geo physical Surveys,
Trench investigations and
Shallow prospect workings with a preliminary inferred gold resource estimate.
The exploration programmes also underwent technical reviews by SRK Exploration Services of the United Kingdom and CSA Global of Australia, including assessments of sampling procedures and quality assurance protocols.
While the 2015 study identified additional drillings, metallurgical testings, environmental assessments and full feasibility studies as necessary steps towards final mining investment decision (FID), EMI maintains that the documented exploration activities and technical assessments demonstrate that the project progressed beyond the conceptual stage.
3. The Power Generation License.
The power development component also achieved significant regulatory milestone.
Itobe-1 Coal Power Limited obtained Nigerian Electricity Regulatory Commission (NERC) License for the development of a 300MW on-grid coal-fired power generation project.
The license became effective in December 2014 and was subsequently renewed until 29 September 2031.
These mining and power project milestones constitute tangible evidence of the corporate, regulatory and technical processes undertaken in pursuit of the original investment objectives.
The Company therefore considers it inaccurate to portray the entire investment relationship as one in which no meaningful project-development activities took place.
EMI ADDRESSES ALLEGATIONS OF FUND DIVERSION
EMI has also noted allegations concerning the purported diversion of investment funds to companies and individuals allegedly associated with Dr. Ezuma, including members of his family.
The Company disputes any attempt to present such allegations as established facts without a comprehensive examination of the transactions, their commercial purposes, the entities involved and the supporting financial records.
EMI maintains that business or family associations, in themselves, do not constitute evidence of financial misconduct. Any allegation concerning specific transfers or financial transactions should be supported by verifiable evidence and assessed within the appropriate corporate, contractual and commercial context.
The Company considers it inappropriate for private individuals to be subjected to public accusations solely on the basis of alleged associations with parties to a commercial dispute.
EMI remains prepared to provide relevant corporate, investment and project documentation through appropriate lawful processes if needed.
THE JOS STEEL MILL REFERENCES AND THE OPERATING REALITIES OF NIGERIA’S INDUSTRIAL SECTOR
The Company also noted references to the Jos steel mill in media publications concerning the allegations against Dr. Ezuma.
EMI considers it necessary to place discussions about the steel and industrial development projects within the broader realities of Nigeria’s operating environment.
EMI led the transaction Team responsible for acquiring the assets of the defunct Jos Steel rolling Company Limited. The acquisition took place in 2005 before the Investment with Sergey was formalized in 2008. Zuma Steel West Africa Limited (ZSWL) acquired from the Federal Government, the assets of the defunct Jos Steel Rolling Company Limited after a Court Supervised Liquidation process guided by the Bureau of Public Enterprise (BPE) and executed the Asset Purchase Agreement.
However, Persistent electricity supply challenges have historically constrained the operations of energy-intensive industries, particularly mining, mineral processing, steel production and other manufacturing activities.
The absence of reliable and affordable electricity has affected production efficiency, operating costs, industrial competitiveness and the ability of businesses to sustain full production capacity in Nigeria.
These challenges form an important part of the commercial and operational context within which large-scale mining, energy and industrial projects in Nigeria are conceived, financed and developed.
EMI therefore maintains that the progress, challenges and circumstances surrounding the projects should be evaluated objectively, with due consideration given to their actual commercial, technical and regulatory records, rather than through isolated references that fail to capture the broader operating environment.
THE COMMERCIAL DISPUTE IS ALREADY BEFORE THE COURTS
Another important aspect of the matter is the existence of ongoing judicial proceedings arising from the commercial relationship between the parties.
EMI was a respondent in LCIA Arbitration No. 194203, Tooley Property Company Limited v. Energy and Metals Industries Limited, one of five arbitral awards dated 17 January 2020.
Since March 2020, the Zuma companies have been challenging the five arbitral awards before the High Court of the Federal Capital Territory, Abuja, in Suit No. FCT/HC/CV/001/2020, on grounds including illegality, misconduct and want of jurisdiction.
Separately, enforcement applications were filed in Suit Nos. FCT/HC/CV/1811 to 1815/2022, seeking recognition and enforcement of the awards, including the award involving EMI.
The Company and its associates have opposed these applications.
EMI considers these proceedings material to understanding the commercial relationship and the issues currently being presented in the media.
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.
It also considers it important to distinguish between a commercial dispute, the existence of an arbitral award and allegations of criminal wrongdoing. These are distinct legal matters and should not be conflated.
ON THE EFCC INVESTIGATION AND THE PRESUMPTION OF INNOCENCE
EMI acknowledges and respects the statutory responsibility of the Economic and Financial Crimes Commission (EFCC) to investigate allegations of financial and economic crimes.
The Company has stated that it does not seek to obstruct any lawful investigation and that Dr. Ezuma remains willing to cooperate with lawful requests from the relevant authorities.
However, EMI emphasizes that allegations under investigation must not be presented as established findings of guilt.
Dr. Ezuma has not been convicted of any offence in connection with the allegations, and the constitutional presumption of innocence guaranteed under Section 36(5) of the Constitution of the Federal Republic of Nigeria remains sacrosanct.
The Company is concerned that the widespread circulation and republication of allegations without adequate context, documentary substantiation or an opportunity for the affected parties to respond could cause significant and lasting reputational damage to EMI, its leadership, employees, business partners and other stakeholders.
While recognizing the importance of public accountability and the media’s responsibility to report matters of public interest, EMI believes that such reporting must be guided by accuracy, fairness, balance and respect for due process.
EMI CALLS FOR RESPONSIBLE AND BALANCED MEDIA REPORTING
In view of the widespread publication and republication of the allegations, EMI calls on media organizations reporting the matter to give due consideration to the Company’s position and the documentary records available.
Specifically, the Company urges media organizations to:
Clearly distinguish allegations from facts established by a court of competent jurisdiction.
Take account of the executed investment agreements and the corporate structure underpinning the business relationship.
Recognize the regulatory approvals, exploration activities and technical milestones achieved in the development of the mining and power projects.
Acknowledge the ongoing judicial proceedings arising from the commercial relationship.
Provide the Company and other affected parties with a fair opportunity to respond to material allegations.
Exercise caution in publishing claims concerning individuals and corporate entities without adequate verification.
EMI also appeals to members of the public to exercise restraint and avoid drawing premature conclusions from reports containing allegations that are yet to be fully examined through appropriate legal processes.
The Company reserves all rights and remedies available under Nigerian law in respect of any publication found to contain false, defamatory or materially misleading assertions and may not hesitate enforce those rights where the need arises.
A CALL FOR FACTS, CONTEXT AND DUE PROCESS
For more than a decade, Dr. Innocent Ezuma has been involved in the promotion, licensing and technical development of mining and energy projects in Nigeria.
The documentary records associated with these initiatives include executed investment agreements, 25-years mining leases, extensively explored and technically reviewed all the referenced mineral projects, and the regulatory license for a 300MW power generation project.
EMI recognises that complex commercial relationships can give rise to disagreements of this nature and that allegations of wrongdoing must be investigated where appropriate.
However, a commercial disagreement should not automatically be equated with criminal wrongdoing. Equally, allegations under investigation should not be elevated to established facts before the relevant issues have been examined and determined through due process.
The Company remains confident in the documentary records underpinning its position and reiterates its commitment to protecting its corporate interests, cooperating with lawful investigations and respecting the judicial process.
EMI believes that the facts, the documentary evidence and the appropriate legal processes should ultimately determine the outcome of this matter, rather than the perceived approach tending towards deliberate reputational damage.
ISSUED BY:
THE MANAGEMENT
ENERGY AND METALS INDUSTRIES LIMITED
Abuja, Nigeria
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.
The Company is associated with opportunities across Nigeria’s mining, energy and industrial sectors, with a strategic focus on responsible resource development, investment partnerships and the sustainable utilisation of the country’s natural resources.
EMI recognises the strategic importance of the extractive and energy industries in advancing economic diversification, industrialisation, employment generation and sustainable national development
