Court Orders All Banks To Blacklist Nduka Obaigbena Over $225m Debt Dispute With First Bank

The Federal High Court in Lagos has issued a Mareva injunction, preventing all commercial banks and financial institutions in Nigeria from releasing funds or assets worth up to $225.8 million to General Hydrocarbons Limited.

This amount represents an outstanding loan owed to First Bank of Nigeria as of September 30, 2024.

The order stems from a lawsuit filed by First Bank of Nigeria Limited and FBNQuest Trustees Limited against General Hydrocarbons Limited and 15 other defendants.

In the suit marked FHC/L/CS/2378/2024, First Bank claimed the debt is tied to a loan taken by the defendants for Oil Mining Lease (OML) 120.

General Hydrocarbons’ directors, identified as Mr. Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Obaigbena, were named in the suit.

The court also approved serving notices to certain defendants outside Nigeria via courier and instructed them to respond within 30 days.

Justice D.I. Dipeolu, who granted the injunction, barred the defendants from accessing or transferring assets linked to OML 120 or pledged as loan collateral.

The judge also ordered all banks and financial institutions to disclose account balances and transactions related to the defendants within seven days of receiving the court order.

The injunction also requires defendants involved in OML 120 operations to disclose the volume of products extracted since production began.

Furthermore, the court restricted the defendants from transferring or diminishing their assets, including crude stock, insurance policies, shares, and receivables, until the case’s interlocutory motion is resolved.

In related developments, a letter by Nduka Obaigbena to the Central Bank of Nigeria Governor detailed the history of the loan dispute.

He revealed how, in 2020, he facilitated discussions between First Bank and the Nigerian National Petroleum Corporation (NNPC).

Obaigbena claimed the bank initially restructured the debt as part of a tripartite agreement involving General Hydrocarbons and the Asset Management Corporation of Nigeria (AMCON).

Under the agreement, General Hydrocarbons was to repay the discounted loan while developing OML 120, which helped First Bank avoid substantial financial losses in 2021.

However, Obaigbena accused the bank of later obstructing financing for the project, breaching the terms of the agreement.

The case has been adjourned to January 20 for further hearings.

KanyiDaily had also reported how an Ogun State High Court ordered Zenith Bank Plc to pay N500,000 as damages for sending spam messages to a woman identified as Omotola Fathiat Quadri.