A Federal High Court in Lagos has frozen General Hydrocarbons Limited’s accounts in Nigerian financial institutions. The court’s decision comes after claims by First Bank of Nigeria Limited that the oil firm owes $225.8 million (approximately ₦350 billion).
Justice Deinde Dipeolu issued a Mareva injunction to prevent General Hydrocarbons, owned by Nduka Obaigbena, from transferring or accessing funds. “This order is critical to securing our client’s claim,” said Victor Ogude (SAN), counsel for First Bank.
The dispute stems from a loan agreement between First Bank and General Hydrocarbons to finance operations in oil blocks OML 120 and 121. The assets, including OML 121, were pledged as collateral. However, the bank alleges default in repayment, leading to the massive debt.
Legal Measures Expand to Directors and Global Partners
The court’s ruling also targets directors of General Hydrocarbons, including Mr. Obaigbena, Efe Obaigbena, and Olabisi Obaigbena, restricting their personal accounts and assets. Financial institutions such as Zenith Bank, Access Bank, and fintech firms like Flutterwave and Paystack are included in the freeze order.
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International partners, including Vitol SA, Mercuria Energy, and Trafigura PTE, have been ordered to disclose the quantity of oil products lifted from OML 120. “This is about transparency and accountability,” a legal expert noted.
$225.8m Debt: The Stakes for Nigeria’s Oil Sector
The debt issue highlights challenges in Nigeria’s oil industry, where financing agreements often face disputes. Analysts believe the case could have broader implications for investment confidence in the sector.
Justice Dipeolu has adjourned the case until January 20, 2025, for further hearing. Meanwhile, First Bank continues to seek recovery of the full $225.8 million, urging compliance with the court’s orders.
