The legal dispute between Femi Otedola’s First Bank and Nduka Obaigbena’s General Hydrocarbons Limited has escalated.
In the latest development, the Federal High Court in Port Harcourt issued an order to seize and detain the crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) vessel Tamara Tokoni.
As a result, personnel from the Nigerian Navy have detained the cargo in compliance with the court’s directive, according to PREMIUM TIMES, which reported the news early Wednesday morning.
The FPSO vessel Tamara Tokoni belongs to General Hydrocarbons, an oil services company primarily owned by Obaigbena, who is also the Chairman and Editor-in-Chief of THISDAY and ARISE Media Group.
The conflict centers around a legal dispute between First Bank and Obaigbena’s company over a series of unpaid credit facilities. First Bank claims that General Hydrocarbons failed to meet several repayment deadlines.
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The bank is seeking $225.8 million in repayment, which it asserts is the outstanding debt on General Hydrocarbons’ account as of September 30, 2024.
In a ruling on January 9, Justice E.A. Obile ordered the detention of the crude oil cargo on the Tamara Tokoni until a “satisfactory guarantee” of $19.7 million, plus interest and costs, is provided by the defendants.
The court also instructed the Nigerian Navy, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Harbour Master of the Nigerian Ports Authority (NPA) to assist in implementing the arrest order for the vessel.
Additionally, the judge directed security forces to take necessary precautions, including regular patrols and surveillance around the crude oil cargo, to prevent any attempts to dissipate it before the court order is fulfilled.
The court has adjourned the matter until February 9, 2025, for the continuation of the main case.
In a follow-up letter, the Federal High Court requested the assistance of the Chief of Naval Staff to ensure the execution of the arrest and detention order for the crude cargo aboard the Tamara Tokoni.
Read Also: Court Blocks Nduka Obaigbena’s Accounts Over $225.8 Million First Bank Debt
First Bank had filed a debt recovery lawsuit against Mr. Obaigbena and his family members, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, accusing them of using their oil company, General Hydrocarbons Limited, to accumulate millions of dollars in debt.
The bank successfully obtained a Federal High Court order in Ikoyi, Lagos, freezing the accounts and assets of Mr. Obaigbena, his company, and his two daughters—who hold directorial positions on the General Hydrocarbons board—across all commercial banks in Nigeria.
In response, General Hydrocarbons issued a statement via its legal representatives, Abiodun Layonu & Co., condemning the order secured by First Bank as an “abuse of court process.” The company highlighted a previous court order, issued by Justice A. Lewis-Allagoa on December 12, 2024, which barred First Bank from obstructing General Hydrocarbons’ access to necessary loan facilities or funding for the exploration and operation of oil and mining lease (OML) 120.
The loan agreement between both parties stipulated that First Bank would finance OML 120’s operations, with profits from the venture to be shared equally. However, General Hydrocarbons claims that the bank violated several terms of the facility, including delays in the disbursement of credit.
Documents obtained by Premium Times reveal that General Hydrocarbons also secured an injunction from the court, preventing First Bank from taking any actions to enforce security or collect any assets related to the facility agreements for OML 120’s operation.
In its statement, General Hydrocarbons accused First Bank of continually disregarding the court’s decision and misleading the public.
However, First Bank denied any violation of the court’s ruling, asserting that its asset-freezing order did not contravene the prior judgment in favor of General Hydrocarbons.
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