The Federal High Court in Abuja has filed a contempt of court lawsuit against Olayemi Cardoso, the governor of the Central Bank of Nigeria, and Salam-Alada Kofo, the director of legal services for the CBN, for allegedly failing to completely abide by a Supreme Court ruling.
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Cardoso, Kofo, the CBN, the Economic and Financial Crimes Commission, and the Minister of Finance and Coordinating Minister of Economy, Wale Edun, were listed as respondents in a contempt suit brought by the applicant, Melrose General Services, with the filing number FHC/ABJ/CS/532/2025.
Despite the Supreme Court’s ruling overturning the previous seizure of the cash, the applicant alleges that the respondents did not release its N220 million.
According to reports, the lawsuit is related to the contentious Paris Club reimbursement, which included payments made to consultants who provided services to the Nigerian Governors’ Forum.
The release of frozen monies, including N1.22 billion held in Melrose General Services Limited’s bank account and N220 million given to Wasp Networks and Thebe Wellness as loans and investments, was ordered by the Supreme Court in June 2024 after it overturned a prior forfeiture ruling impacting the company.
The court decided that the EFCC had not demonstrated that the money was, as claimed, the proceeds of fraud and ordered that the full sums be returned to the legitimate owners.
However, a year after the Supreme Court’s ruling, Melrose claimed that although the CBN had reimbursed N1.22 billion, the remaining N220 million was still underpaid.
Melrose contended through its attorney, Chikaosolu Ojukwu, SAN, that the failure to follow the court’s order amounted to contempt of court.
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The firm argued that the Supreme Court’s authority is undermined by the limited compliance.
Oyedele added that Thebe Wellness had not yet claimed N20m, whereas Wasp Network had asked for N200m.
M.A. Babatunde, the EFCC’s lawyer, filed a motion for misjoinder, arguing that the agency shouldn’t be involved in the case.
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, the fund will provide credit-risk protection to participating financial institutions, helping them lend to businesses that might otherwise struggle to meet conventional lending requirements. The model is designed to support up to $1 billion in outstanding credit capacity. The initiative will bring together lenders, business-support organisations, investors and other financing partners to create a structured route for eligible businesses to obtain commercial loans. Unlike a conventional loan programme that directly disburses money to applicants, the fund will share part of the lending risk with participating financial institutions. Banks will still assess applications, approve loans and manage repayments. ## How the $200 Million SME Fund Will Work The financing initiative targets businesses that have moved beyond the early stages of development and are ready to borrow to support further growth but face difficulties securing adequate credit. Under the proposed arrangement, eligible businesses can initially access loans in local currency equivalent to $250,000, subject to approval by participating lenders. The initiative aims to make loans of up to $1 million available when fully funded. The fund will work with venture capital firms, business accelerators and other SME ecosystem partners to identify and recommend potential borrowers. These organisations can help demonstrate a business's track record and readiness for debt financing. The fund will then apply its eligibility criteria, guarantee requirements and portfolio-risk assessments. Its assessment process will also use artificial intelligence-powered underwriting and due diligence. Participating financial institutions will retain responsibility for independently evaluating borrowers, deciding whether to approve applications, disbursing funds and monitoring repayments. According to [BusinessDay](https://businessday.ng/technology/article/cascador-sterling-target-sme-collateral-barriers-with-200m-credit-backstop/), the model is intended to reduce the collateral and guarantee burden on businesses with proven commercial traction. Cascador chief executive officer Trish Thomas said Nigerian entrepreneurs often struggle because the capital available to them does not match their business needs or stage of development. She explained that sharing risk with lenders could help more established businesses obtain the financing needed to scale and generate employment. Sterling Bank Group Executive Obinna Ukachukwu said the partnership combines additional credit protection with referrals from venture funds and studios familiar with the businesses they support. This approach, he noted, could give lenders greater confidence to offer larger loans with longer repayment periods. ## Why the Initiative Matters to Nigerian SMEs Access to affordable and appropriate financing remains a significant obstacle for businesses seeking to expand in Nigeria. Many enterprises require capital to purchase equipment, improve production, enter new markets and recruit workers, but conventional lending conditions can make borrowing difficult. Cascador's white paper, *The Multiplier Model*, highlights the wider challenge. According to the organisation, only 22 per cent of businesses in Sub-Saharan Africa have a bank loan or line of credit, compared with a global average of 36 per cent. The new fund seeks to bridge this gap by encouraging commercial lenders to finance businesses that have demonstrated demand for their products or services but cannot easily secure suitable debt. For entrepreneurs, the potential benefits include access to larger loans, longer financing periods and reduced pressure to provide extensive collateral or guarantees. However, the arrangement does not guarantee approval, and businesses will still need to satisfy the relevant eligibility requirements and lender assessments. The fund is also expected to attract contributions from philanthropic organisations, impact investors and development finance institutions to support its risk-sharing structure. ## Back Story: Sterling Bank and Cascador Expand an Existing Partnership The announcement builds on an earlier financing partnership between Sterling Bank and Cascador. In May 2025, the organisations introduced a $2 million Catalytic Fund to provide growth financing to businesses emerging from Cascador's entrepreneur development programme. As reported by [PUNCH Newspapers](https://punchng.com/cascador-sterling-bank-unveil-2m-fund-for-nigerian-smes/), the earlier initiative combined debt financing with business support, flexible repayment arrangements and reduced collateral requirements. The new $200 million fund represents a broader approach, designed to bring additional ecosystem partners into the financing process rather than rely solely on businesses connected to Cascador. Cascador said it had supported 80 ventures since 2019, with those businesses collectively raising more than $150 million in capital. For Nigeria's SME sector, the success of the expanded initiative will depend on how effectively it mobilises funding, attracts participating lenders and makes financing accessible to qualified businesses. If implemented successfully, the model could help more Nigerian enterprises secure the capital needed to grow, strengthen local industries and create sustainable employment.](https://naijaeyesblog.com/wp-content/uploads/2026/10/Sterling-Cascador-768x432.avif)
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