The Nigerian Navy has detained an oil vessel belonging to General Hydrocarbons Limited, a company owned by Nduka Obaigbena, Chairman of ThisDay Newspapers and Arise Television. The development follows a legal battle involving a $225.8 million loan dispute with Femi Otedola, Chairman of First Bank Plc.
Court-Ordered Detention
The Federal High Court in Port Harcourt issued an order for the detention of crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni. On January 9, Justice E.A. Obile ruled that the cargo should remain detained until General Hydrocarbons Limited provides a “satisfactory guarantee” of $19.7 million from a first-class Nigerian bank, including interest and costs.
The court directed the Nigerian Navy, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian Ports Authority (NPA) to enforce the order. Security agencies have also been tasked with maintaining surveillance and preventing any dissipation of the detained crude oil until the court’s conditions are met.
Background of the Dispute
The vessel’s detention adds to the ongoing legal tussle between First Bank and Mr. Obaigbena. The bank initiated proceedings to recover debts allegedly accrued by Obaigbena and his family, who reportedly leveraged General Hydrocarbons Limited to secure significant loans.
Previously, the Federal High Court in Ikoyi, Lagos, authorized the freezing of accounts and seizure of assets belonging to Obaigbena, his company, and his daughters, who hold directorial roles in General Hydrocarbons.
However, General Hydrocarbons’ legal team, Abiodun Layonu & Co, criticized the order, calling it an “abuse of court process.” They referred to a December 12, 2024, ruling by Justice A. Lewis-Allagoa, which prohibited First Bank from interfering with the company’s access to loan facilities critical for its operations in Oil and Mining Lease (OML) 120.
Next Steps
The case has been adjourned to February 9, 2025, for further proceedings. Meanwhile, enforcement of the vessel’s detention remains in effect, highlighting the high stakes in this legal and financial conflict.