Obaigbena Sheds More Light On Conflict With FirstBank Over $225.8m Debt

Nduka Obaigbena, media mogul and Chairman, General Hydrocarbons has provided more details on the legal dispute with First Bank of Nigeria in connection with some loans obtained by his energy firm from the lender.

“We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination,” Obaigbena said in a statement on Friday.

“We hope for a favourable outcome under our system of justice,” he added.

Obaigbena, Global Hydrocarbons and First Bank have been embroiled in knotty legal conflicts over some credit facilities taken by the company, which the bank claimed has missed a number of repayment deadlines.

On 30 December 2024, First Bank and FBN Quest Limited, the joint plaintiff in the suit, secured an order from the Federal High Court, Ikoyi, Lagos blocking the accounts and assets the media mogul, his company and his two daughters who hold directorship roles on the board of General Hydrocarbons in all the commercial banks in Nigeria.

The order, granted by Justice Deinde Dipeolu, holds until “the hearing and determination of the motion on notice for interlocutory injunction,” according to a court document.

First Bank and FBN Quest are seeking a claim of $225.8 million in all, which it said is the indebtedness on General Hydrocarbons’ account with the lender as of 30 September 2024.

General Hydrocarbons issued a statement on Thursday through Abiodun Layonu & Co, its solicitors, where it called First Bank’s obtaining of the court orders an “abuse of court process.”

The lawyers drew 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 taking loan facilities or funding required for the exploration and operation of oil and mining lease (OML) 120.

Both parties had previously entered into a loan agreement requiring the lender to finance the running of OML 120 with an understanding that the two would share any profit from the investment on an equal basis.

General Hydrocarbons alleged that First Bank had variously breached some of the terms of the facility 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 “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 the Friday statement, General Hydrocarbons remarked that First Bank has persisted in ignoring and disobeying a persisting court judgement and has chosen to mislead the public.

“We call on our valued partners to remain calm as we work through the courts, arbitration or mediation to seek solutions to our differences in strategy, not in form or substance,” the statement said.

“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby and the bath water.”

Earlier, lawyers to Obaigbena, who owns THISDAY Media Group and  Arise TV channel, have described the freezing order obtained by First Bank of Nigeria Limited against his bank accounts as “an abuse of court processes.”

Abiodun Layonu & Co, the solicitors to General Hydrocarbons made the disclosure in a statement on Thursday titled “To Whom It May Concern”.

First Bank had on 30 December 2024 obtained an order from the Federal High Court, Ikoyi, Lagos restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to Mr Obaigbena from any account maintained by him.

The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited, an oil and gas firm in which all the three are directors and shareholders.

Another order barring the banks from dealing in or releasing such monies and assets due to the company, its agents, privies, subsidiaries and sister companies with the banks up to the same sum was issued.

But in their reaction Thursday, the solicitors alleged there are legal defects in the orders granted by the court to the bank.

They also noted the importance of stating the grave legal implications of acceding to the lender’s attempt to enforce the orders against their clients’ interests in First Bank.

“Kindly note that the Federal High Court, per Allagoa, J had in a final judgment delivered on 12th December 2024 in Suit No. FHC/L/CS/1953/2024 – General Hydrocarbons Limited v. First Bank of Nigeria Limited, unequivocally and emphatically restrained FBN from taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of our client pending the hearing and determination of the ongoing arbitration proceeding between our client and FBN,” the lawyers said.

“We consider it imperative to draw your attention to the fact that the restraining order of the Federal High Court against FBN in Suit No. FHC/L/CS/1953/2024 emanated from a final judgment of a court of competent jurisdiction which has not been set aside on appeal, and which was delivered prior to the subject of interim order of the Federal High Court which FBN seeks to enforce against our client.”

General Hydrocarbons’ solicitors asserted that the extant orders of the Federal High Court per. Allagoa, J, made on 12 December 2024, after hearing both parties, is at variance with the orders of the Federal High Court per Dipeoplu, J which was obtained ex parte by First Bank on 30 December 2024.

“The plausible explanation for this is that FBN deliberately omitted to bring the orders of the court made on 12th December 2024 to the attention of the court in subsequent suit coram Dipeolu, J. This is a most blatant case of abuse of court process by FBN which has sought to overreach our client by approaching another judge of the same court to obtain favourable orders that directly contravene an extant order of the court which has not been set aside on appeal or otherwise,” the document said.

The Federal High Court Ikoyi, Lagos had on 30 October 2024 granted an order among others restraining First Bank from obstructing or preventing General Hydrocarbons from obtaining or securing loan facilities or funding necessary for the exploration or operation of Oil Mining Lease (OML) 120.

The orders were granted by Justice A. Lewis-Allagoa.

“An order of injunction is granted restraining the respondent either by itself, or acting through its servants, agents, assigns, privies, affiliates howsoever described, including any person claiming under its authority from making any official or unofficial publication of its financial statement, annual reports or any statement of its financial position, howsoever described, to any public or private institution/person including banks and other financial institutions and regulatory bodies such as the Central Bank of Nigeria or the Federal Inland Revenue Service in a manner to reflect or suggest that the applicant is indebted to or has assumed the respondent’s liability for the debt of $718,000,000 (Seven Hundred and Eighteen Million United States Dollars) or any other amount whatsoever, arising from the respondent’s transactions with Atlantic Energy Drilling Concept Nigeria Limited, pending the hearing and determination of the originating motion filed in this suit,” a court paper says.

The court also granted an order barring First Bank from making any calls or demands or taking any steps to enforce any security, receivables, instruments, finance documents or assets of General Hydrocarbons, which have been charged as security for the facility agreements in respect of the company’s operation of OML 120 pending the hearing and the determination of the arbitration proceeding between the two parties.

General Hydrocarbons also obtained an order forbidding First Bank from appointing an operator, asset manager or any other person/institution in respect of OML 120 pending the hearing and determination of the arbitration proceeding between the two parties.