Otedola Vs Obaigbena: Navy Arrests Obaigbena’s Firm’s Crude Oil Vessel

The legal battle between First Bank of Nigeria with billionaire magnate, Femi Otedola as its Chairman and media mogul, Nduka Obaigbena’s General Hydrocarbons Limited has intensified with the arrest of a crude oil cargo belonging to the latter.

This follows the order of the Federal High Court in Port Harcourt leading to the arrest and detention of crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) Vessel Tamara Tokoni.

Justice E.A. Obile issued the ruling on January 9, directing personnel of the Nigerian Navy, along with other regulatory and maritime bodies, to ensure the cargo is detained until General Hydrocarbons provides a “satisfactory guarantee” from a first-class Nigerian bank of $19.7 million, plus interest and costs.

Following the court’s directive, the Nigerian Navy has detained the cargo, PREMIUM TIMES reported early Wednesday.

The order also mandates regular surveillance around the vessel to prevent any unauthorised actions.

The FPSO on board vessel Tamara Tokoni belongs to General Hydrocarbons, an oil servicing firm owned mainly by Obaigbena, who also serves as Chairman and Editor-in-Chief of THISDAY and ARISE Media Group.

The businessman’s oil firm and First Bank are locked in a knotty legal conflict over credit facilities his company took, which the bank claimed missed several repayment deadlines.

First Bank is claiming $225.8 million, which it said is the indebtedness on General Hydrocarbons‘ account with the lender as of 30 September 2024.

The 9 January ruling by Justice E.A. Obile ordered the detention of the crude oil cargo on board FPSO Tamara Tokoni pending the provision of a “satisfactory Guarantee from a first-class Nigerian Bank of $19.7 million plus interest and costs by the said Defendants…”

The order also directed officers of 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 provide the necessary assistance in implementing the order of arrest of the FPSO Vessel Tamara Tokoni.

The judge also ordered the security officials to take necessary steps, including providing “regular patrols and surveillance around the cargo of crude oil to prevent General Hydrocarbons Limited from dissipation until the Order of this Court has been complied with in respect of the arrest of the FPSO on board Tamara Tokoni.”

The court then adjourned the matter to 9 February 2025 for a continuation of the substantive suit.

In a subsequent letter to the Chief of Naval Staff, the Federal High Court sought the Nigerian Navy’s assistance executing the court order to arrest and detain the crude cargo on board FPSO Tamara Tokoni.

First Bank had filed a debt recovery suit against Obaigbena and his family members, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, saying they used their oil company General Hydrocarbons Limited to amass millions of dollars in debt.

The bank secured an order from the Federal High Court, Ikoyi, Lagos, blocking the accounts and assets of Obaigbena, his company and those of his two daughters holding directorship roles on the board of General Hydrocarbons in all commercial banks in Nigeria.

General Hydrocarbons issued a statement through Abiodun Layonu & Co, its solicitors, describing the order obtained by First Bank as an “abuse of court process.”

The lawyers called attention to a previous order granted by Justice A. Lewis-Allagoa of the same court on 12 December 2024, prohibiting First Bank from hindering General Hydrocarbons from accessing loan facilities or funding required for the exploration and operation of oil and mining lease (OML) 120.

Both parties had entered into a loan agreement requiring the lender to finance the running of OML 120, with the understanding that they would share any profit from the investment equally.

General Hydrocarbons alleged that First Bank had breached some of the facility’s terms, including not disbursing the credit on time.

According to a document, General Hydrocarbons also obtained an injunction from the judge, restraining First Bank from hindering the company from from “making any calls or demands, or taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of the applicant which have been charged as security for the facility agreements in respect of the applicant’s operation of OML 120.”

In their statement, General Hydrocarbons remarked that First Bank has persisted in ignoring and disobeying a persisting court judgement and has chosen to mislead the public.

But First Bank denied breaching any court order, saying the assets freezing order it obtained did not violate the court’s earlier ruling in favour of General Hydrocarbons.