▪︎UGC image credit: Arise News TV
SHAREHOLDERS, Customers, investors, and other stakeholders of First Bank of Nigeria (FBN) and that of General Hydrocarbons Ltd, are waiting for the outcome of a $225.8m loan disputes between the two companies.
General Hydrocarbons Limited and First Bank of Nigeria Limited are currently at the Federal High Court in Lagos disputing over a $225. 8 million debt being the outstanding loan owed First Bank Nigeria as of September 30, 2024.
The suit has First Bank of Nigeria Limited and FBNQuest Trustees Limited as the first and second plaintiffs while General Hydrocarbons Limited and 15 others were listed as defendants. In the suit marked FHC/L/CS/2378/2024,
FBN claimed that the $225.8 million was the outstanding on the loan obtained by the defendants in respect of Oil Mining Lease 120. The suit lists the directors of General Hydrocarbons as Mr Nduka Obaigbena, Efe Damilola Obaigbena and Olabisi Obaigbena .
The plaintiffs also sought an order granting it leave to serve the originating summons in the suit on the 10th, 11th, 12th, 13th and 15th defendants through courier service and mandate them to enter appearance before the court within 30 days from the date of service of the originating process.
In the suit, First Bank requested the court to freeze the General Hydrocarbons Limited account and stop banks from releasing or dealing with any monies and or whatsoever assets due to the first defendant from any account maintained by the first defendant, their agents, privies, subsidiaries and or sister companies.
Justice D.I. Dipeolu, who granted the order, also restrained the 8th to 16th defendants and any other third parties from dealing with any assets and receivables related or connected with OML 120 “without depositing the proceeds thereof to the first defendant’s account in the first plaintiff’s bank, pending the hearing and determination of the motion on notice for interlocutory injunction.
” The judge also mandated all commercial banks and other financial institutions operating in Nigeria “to file and serve on the plaintiffs/applicants’ solicitors within seven days of serving this court order on them, an affidavit disclosing the sum standing to the first to fourth defendants’ credit with a duly certified statement of accounts of the first to fourth defendants/respondents in their respective custody from the date of its opening till the date this order is served on the banks.”
Dipeolu equally ordered the 8th to 13th defendants “to file and serve on the plaintiffs/applicants a statement disclosing the quantum of products lifted from the 8th defendant or OML 120 since the commencement of production of OML 120.”
The court restrained the first, second, third and fourth defendants and their agents, proxies or allies “from transferring and or dissipating, diminishing or dealing with any interest in the first defendant’s assets including but not limited to crude stock, insurance policies, all forms of stock of shares, all forms of receivables and contracts which have been pledged as securities for the loan facilities granted by the first plaintiff to the first defendant, pending the hearing and determination of the motion on notice for interlocutory injunction.”
“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby with the bathwater. Through our collaboration, we have resolved FBN’s financial challenges and discovered crude oil to the glory of Nigeria,”.
The court also restrained the second to fourth defendants, who are directors of General Hydrocarbons, “from transferring and or dissipating any interest in their assets wherever located in Nigeria, movable or immovable, pending the determination of the motion on notice for interlocutory injunction.”
The Chairman of the Board of General Hydrocarbons Limited (GHL) Nduka Obaigbena has reaffirmed of the company’s commitment to resolving the ongoing dispute with First Bank of Nigeria Limited (FBN).
In a statement issued on Friday, GIL also reassured its stakeholders and partners that the company remains financially strong and committed to its operations.
The GIL Chairman noted the remarkable successes achieved through their collaboration and emphasised GIL roles in saving First Bank from financial distress while simultaneously discovering crude oil “to the glory of Nigeria”.
“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby with the bathwater. Through our collaboration, we have resolved FBN’s financial challenges and discovered crude oil to the glory of Nigeria,” said the statement.
He expained that the partnership, which began under a Subrogation Agreement, allowed GHL to assist in financing FBN’s operations and addressing its Non-Performing Loans (NPLs).
This effort, GHL noted, restored FBN to profitability and laid the groundwork for the exploration and development of OML 120.
However, GHL accused FBN of breaching its obligations under the Subrogation and Tripartite Agreements, resulting in a legal dispute that is currently being addressed through court proceedings and arbitration.
GHL highlighted its achievements in discovering oil and gas reserves, crediting Nigerian-born engineers and global technical partners such as Schlumberger (SLB), Baker Hughes, and Century Group for their contributions.