The Federal High Court in Ikoyi, Lagos, has reportedly issued an order restraining all commercial banks in Nigeria from releasing or dealing in funds and assets totalling $225.8 million connected to Nduka Obaigbena, chairman and editor-in-chief of THISDAY Media Group and Arise News Channel.

The court's order also extends to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited, an oil and gas firm in which the three are directors and shareholders.

According to PremuimTimes reports, Justice D.I. Dipeolu gave the ruling on December. 30, following a suit filed by First Bank of Nigeria Limited and FBN Quest Trustees Limited.

The two institutions sought the court's intervention regarding an alleged outstanding indebtedness of $225.8 million linked to General Hydrocarbons’ accounts with First Bank as of September 30, 2024.

Details of court ruling

The report noted that the court mandated that all commercial banks in Nigeria declare the amounts standing to the credit of the named individuals and company within seven days.

Additionally, energy trading firms such as Vitol SA, Mercuria Energy Trading SA, and Trafigura PTE Limited were ordered to disclose details of products lifted from OML 120, an oil field tied to General Hydrocarbons.

How did the legal state start?

The legal action is reported to have stemmed from a series of transactions and agreements between First Bank and General Hydrocarbons involving oil mining leases and loan facilities dating back to 2011.

First Bank claims the funds are part of a debt recovery effort tied to a loan originally extended to Atlantic Energy Drilling Concepts Limited, chaired by Jide Omokore, an associate of former Petroleum Minister Diezani Alison-Madueke. Obaigbena, however, disputes the claims, alleging that First Bank failed to honour agreements made under a tripartite deed involving the Asset Management Corporation of Nigeria (AMCON).

In a letter addressed to Central Bank Governor Yemi Cardoso on November 7, 2024, Obaigbena accused First Bank of bad faith, mismanagement of agreements, and delaying disbursements, causing financial losses to General Hydrocarbons.

Background of the Debt

The dispute traces back to a $490 million loan granted in 2011 to Atlantic Energy for oil well operations under a Strategic Alliance Agreement with the Nigerian Petroleum Development Company (NPDC). Following defaults on the loan, First Bank wrote off N126 billion as a non-performing loan in 2019.

In 2021, General Hydrocarbons signed an agreement with First Bank and AMCON to finance OML 120 development, aiming to help the bank recover losses linked to Atlantic Energy. However, Obaigbena claims First Bank obstructed the financing process, ultimately leading to arbitration and court proceedings.

Next Steps

The court has adjourned the case for further hearings on Jan. 20, 2025. In the interim, the orders ensure the freezing of all funds and assets up to $225.8 million related to the individuals and entities involved.