The Federal High Court in Lagos has fixed April 29, 2026, to hear a winding-up petition filed by Shell East Staff Investment Cooperative Society Limited (CoopEast) against Femab Properties Limited over an alleged unpaid debt of ₦96 million.
The case, now before the court’s newly created Insolvency Unit, could determine the fate of the real estate firm if the petition for liquidation succeeds.
Dispute Over ₦96m Balance
According to court filings by CoopEast’s counsel, Chris Ekemezie, the ₦96 million represents the outstanding balance of an original ₦850 million land transaction linked to the proposed “Shell Estate Development” in Oniru, Lagos State.
The petitioner claims that despite previous court orders affirming the debt and the expiration of the statutory 21-day notice under the Companies and Allied Matters Act (CAMA) 2020, Femab Properties has failed to settle the balance.
CoopEast is therefore seeking leave of court to advertise the winding-up petition in national newspapers — a standard step preceding liquidation proceedings.
Femab Denies Insolvency
In its counter-affidavit, Femab Properties rejected claims of insolvency, arguing that the issue stems from a contractual disagreement rather than inability to pay.
The company’s defence includes:
The ₦96 million allegedly represents interest deducted on an “unutilised loan” caused by the petitioner’s actions.
A ₦10 million bank draft issued in March 2021 as partial repayment and evidence of good faith.
Ongoing negotiations aimed at resolving the disputed interest component.
Femab insists it remains a going concern with sufficient assets to meet its obligations.
Test Case for Insolvency Unit
The matter is being closely watched as one of the early major cases before the Federal High Court’s specialized Insolvency Unit, established by Chief Judge John Terhemba Tsoho to streamline corporate restructuring and liquidation cases under CAMA 2020.
Legal analysts say the court’s decision on April 29 will determine whether liquidation proceedings formally begin or whether the parties are redirected toward settlement or arbitration.
