Federal High Court in Lagos Issues Landmark Orders in $225 Million Debt Dispute

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Lagos, Nigeria – January 9, 2025.

The Federal High Court in Lagos presided over by Justice D.D. Dipeolu has taken significant legal steps in a case involving First Bank of Nigeria Limited, FBNQuest Trustees Limited, and multiple high-profile defendants over an alleged outstanding debt of $225,802,379.69 USD. The case, filed under suit number FHC/L/CS/2378/2024, highlights complex financial disputes with both national and international implications.

PARTY INVOLVED

Plaintiffs/Applicants:

First Bank of Nigeria Limited
FBNQuest Trustees Limited

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Defendants:

General Hydrocarbons Limited
Nduka Obaigbena
Efe Damilola Obaigbena
Olabisi Eka Obaigbena
GHL 121 Ltd
Aimotex Nigeria Limited
Calidin Global Resources Limited
CESL Oyo Production BBS Limited (Owner of FPSO Tamara Tokoni)
CESL Oyo Production 0 & M Limited
Vitol SA
Mercuria Energy Trading SA
Trafigura PTE Limited
Glencore Energy UK Limited
Schlumberger Nigeria Limited
Schlumberger Overseas SA
Baker Hughes Oilfield Services

Third-Party Financial Institutions:

Several Nigerian banks and financial institutions were named in the order, including:

Guaranty Trust Bank Limited
Access Bank PLC
Citibank Nigeria Limited
Fidelity Bank PLC
First Bank of Nigeria Limited
Zenith Bank PLC
United Bank for Africa PLC
Keystone Bank Limited
Others such as Flutterwave, Opay, Palmpay, Paystack, and more.

Key Allegations

Outstanding Debt:

The plaintiffs claim that the defendants owe a total of $225,802,379.69 USD (Two Hundred and Twenty-Five Million Eight Hundred and Two Thousand Three Hundred and Seventy-Nine Dollars and Sixty-Nine Cents).
This debt relates to loan facilities extended by the plaintiffs to the 1st defendant.

Asset Preservation:

There are allegations of potential dissipation of assets by the defendants, leading the plaintiffs to seek injunctive relief to preserve the assets.

International Scope:

Defendants and related entities located in Switzerland, Singapore, the UK, and Thailand are implicated, emphasizing the cross-border nature of the financial dealings.

Court Orders

Interim Injunctions:

Freezing Defendants’ Assets:

Defendants’ funds and accounts in Nigerian banks were frozen up to the total claim amount of $225,802,379.69 USD.
Includes accounts associated with the defendants’ BVNs.

Disclosure of Financial Information:

All financial institutions operating in Nigeria are mandated to:
Disclose the balance in accounts linked to the defendants.
Provide certified statements of these accounts.
Defendants must also disclose details of products lifted from CESL Oyo Production operations (OML 120).

Restriction on Dealings:

The defendants and related entities are restrained from transferring or dealing with their assets, including crude stocks, receivables, insurance policies, and pledged securities.

International Service of Summons:

Court granted leave to serve the summons on overseas defendants (e.g., Vitol SA in Switzerland, Trafigura PTE in Singapore) via courier services such as DHL.

Mareva Injunctions:

Restrains banks from releasing any funds or assets belonging to the defendants.
Reliefs Sought by the Plaintiffs
Preservation of assets pending resolution of the case.
Accountability and transparency from financial institutions regarding the defendants’ accounts.
Interim measures to ensure funds are available to satisfy the plaintiffs’ claim.

Case Timeline

Filing Date: December 27, 2024.

Ex-Parte Motion Hearing: December 30, 2024.

Next Hearing Date: January 20, 2025, for the motion on notice.
Geographical Scope
Defendants’ assets and financial dealings span:
Nigeria
Switzerland (Geneva)
Singapore
United Kingdom (London)
Thailand (Bangkok)