The legal tussle between Femi Otedola’s First Bank and Nduka Obaigbena’s General Hydrocarbons Limited has escalated, with the Federal High Court in Port Harcourt ordering the detention of crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni.
Court Order Execution
The Nigerian Navy, acting on the court’s directive, detained the cargo early Wednesday morning. The Tamara Tokoni, owned by the Ken Etete-led Century Group and operated by General Hydrocarbons, was stationed at one of its production sites.
The court’s order mandates the cargo’s detention until General Hydrocarbons provides a “satisfactory guarantee” of $19.7 million from a first-class Nigerian bank, alongside interest and associated costs.
Debt Recovery Battle
First Bank has filed a lawsuit against General Hydrocarbons, claiming the company owes $225.8 million as of September 30, 2024. The financial institution accuses Obaigbena and his family, including his daughters who hold directorial roles in the company, of leveraging their oil firm to accumulate substantial debts.
The case has been adjourned to February 9, 2025, for the continuation of proceedings.
Frozen Accounts and Asset Disputes
First Bank previously secured a Federal High Court order in Lagos to freeze the accounts and assets of General Hydrocarbons and its directors across all commercial banks in Nigeria.
In response, General Hydrocarbons, through its solicitors Abiodun Layonu & Co., described the order as an “abuse of court process.” They highlighted a prior ruling from December 2024 by Justice A. Lewis-Allagoa, which prohibited First Bank from obstructing the company’s access to funding for Oil and Mining Lease (OML) 120 operations.
Allegations of Contractual Breach
General Hydrocarbons claims that First Bank breached their loan agreement, which required the lender to finance OML 120 operations, with profits to be shared equally. The company alleges delays in fund disbursement and accuses the bank of ignoring court rulings in its favor.
First Bank’s Defense
First Bank denies violating any court order, asserting that its actions to freeze assets align with the law and do not conflict with earlier judgments.
The Bigger Picture
This legal conflict underscores the complexities of financing agreements in Nigeria’s oil and gas sector. As the case unfolds, it could set significant precedents for debt recovery and contractual compliance in the industry.
