The Federal High Court in Lagos has issued a Mareva injunction, freezing the accounts and assets of General Hydrocarbons Limited and its directors, including Nduka Obaigbena, for an alleged $225.8 million debt owed to First Bank of Nigeria Limited and FBNQuest Trustees Limited.
The court’s order prohibits all Nigerian commercial banks from disbursing money or handling any assets owned by General Hydrocarbons Limited and its directors up to the plaintiffs’ claimed sum.
The banks were also ordered by the court to furnish certified statements and reveal the precise balances in these accounts within seven days.
The court’s ruling has been challenged by General Hydrocarbons Limited, which claims First Bank abused the legal system. Citing a previous court ruling that reportedly forbids such activities, the business has urged Nigerian commercial banks to refrain from enforcing the asset freeze.
A $490 million loan given to Atlantic Energy in 2011 for oil well operations under a Strategic Alliance Agreement with the Nigerian Petroleum Development Company (NPDC) is at the heart of the conflict. In 2019, First Bank wrote off N126 billion as a non-performing loan due to loan defaults.
In 2021, General Hydrocarbons entered an agreement with First Bank and the Asset Management Corporation of Nigeria (AMCON) to finance the construction of the Oil Mining Lease (OML) 120, with the goal of assisting the bank in recovering losses associated with Atlantic Energy.
However, according to General Hydrocarbons, First Bank blocked the funding process, which prompted arbitration and legal action.
Additional hearings have been set by the court for January 20, 2025. The freezing orders are still in force in the interim, affecting all assets and monies up to $225.8 million associated with the parties.
