The Federal High Court in Ikoyi, Lagos, has issued an order restraining all Nigerian commercial banks from accessing or disbursing funds and assets amounting to $225.8 million tied to Nduka Obaigbena, the founder of ThisDay Newspapers and Arise News.
This decision arises from allegations of unpaid loans totaling $225.8 million owed to First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, both subsidiaries of FBN Holdings Plc.
Court Orders and Details
The court’s directive also extends to accounts and assets linked to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited, an oil and gas company where they are directors and shareholders. Justice D.I. Dipeolu mandated all commercial banks in Nigeria, including digital platforms like Flutterwave, Paystack, and Piggyvest, to freeze transactions tied to these entities.
The court also required commercial banks and specific international energy trading companies, including Vitol SA and Glencore Energy UK Limited, to disclose financial statements related to OML 120, an oil block operated by General Hydrocarbons.
Background on the Debt
The financial dispute traces back to a $490 million loan issued in 2011 to Atlantic Energy Drilling Concepts Limited, a company chaired by Jide Omokore and associated with former Petroleum Minister Diezani Alison-Madueke. The loan was intended for oil field development but defaulted, becoming a significant non-performing asset for First Bank.
In 2020, Mr. Obaigbena facilitated discussions between First Bank and the Nigerian National Petroleum Corporation (NNPC) to salvage the situation. General Hydrocarbons later entered into agreements with First Bank to explore and develop OML 120, sharing profits to mitigate First Bank’s financial exposure.
However, disputes arose over alleged delays and changes in contractual terms, leading General Hydrocarbons to claim significant losses.
Legal Developments
On December 27, 2024, First Bank and FBNQuest sought a court injunction to freeze accounts and prevent asset dissipation by Mr. Obaigbena and associated parties. The court granted this request on December 30, 2024, pending further hearings scheduled for January 20, 2025.
The case highlights longstanding controversies surrounding financial transactions and oil exploration in Nigeria, with implications for governance and corporate accountability in the country’s energy and banking sectors.
