The Federal High Court in Lagos has issued a Mareva injunction restraining all commercial banks in Nigeria from releasing funds or assets up to $225,802,379.69 belonging to General Hydrocarbons Limited, in connection with an outstanding loan owed to First Bank of Nigeria Limited and FBNQuest Trustees Limited.
The court’s decision follows a suit (FHC/L/CS/2378/2024) filed by First Bank and FBNQuest, alleging the debt was tied to financing Oil Mining Lease (OML) 120.
Key Developments
Asset Freeze: Justice D.I. Dipeolu ordered the freezing of accounts and assets linked to General Hydrocarbons, its directors, and associated entities until the resolution of the case.
Directors Implicated: Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Obaigbena, directors of General Hydrocarbons, are named defendants.
Scope of Injunction: The order restricts asset transfers and mandates banks to disclose account balances and transactions related to the defendants.
Global Reach: The court granted leave to serve the originating summons to defendants located in Switzerland, Singapore, the UK, and Thailand, requiring them to appear within 30 days.
Loan Background: The plaintiffs assert the loan was tied to OML 120 but became non-performing, prompting legal action to recover funds.
Historical Context
The case has ties to an earlier controversy involving Atlantic Energy Drilling Concept Nigeria Limited, whose Strategic Alliance Agreements with NPDC Limited (a subsidiary of NNPC) were flagged as fraudulent by the Federal Government.
In a letter to the Central Bank Governor, Nduka Obaigbena highlighted a 2020 agreement involving General Hydrocarbons, First Bank, and AMCON to resolve the debt through a discounted repayment plan. This deal reportedly allowed First Bank to avoid a massive loan loss provision and declare a profit in 2021.
Next Steps
The case has been adjourned to January 20, 2025, for the hearing of the motion on notice. In the interim, First Bank has been required to provide an indemnity against potential damages arising from the injunction.
This high-stakes financial dispute underscores the challenges in Nigeria’s oil and gas financing and the systemic impact of non-performing loans on the banking sector.
