General Hydrocarbons, an energy firm chaired by Nduka Obaigbena, has elaborated on its ongoing legal battle with First Bank of Nigeria over loans allegedly defaulted by the company.
In a statement issued on Friday, Mr Obaigbena said, “We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination.” He expressed optimism about the outcome, adding, “We hope for a favourable outcome under our system of justice.”
The dispute involves loans secured by General Hydrocarbons, with First Bank claiming the company missed several repayment deadlines. The conflict escalated when, on 30 December 2024, the Federal High Court in Ikoyi, Lagos, granted an order freezing the accounts and assets of Mr Obaigbena, his two daughters—board members of the company—and General Hydrocarbons across all Nigerian commercial banks.
The court order, issued by Justice Deinde Dipeolu, will remain effective “until the hearing and determination of the motion on notice for interlocutory injunction,” according to court documents. First Bank and FBN Quest Limited, co-plaintiffs in the case, are jointly pursuing a claim of $225.8 million, which they assert represents the outstanding debt on the company's account as of 30 September 2024.
Disputed Claims and Court Rulings
In response, General Hydrocarbons, through its solicitors, Abiodun Layonu & Co, criticised the actions of First Bank, describing them as an “abuse of court process.” The lawyers referenced an earlier order by Justice A. Lewis-Allagoa of the same court, dated 12 December 2024, which restrained First Bank from obstructing General Hydrocarbons' efforts to secure funding for operations related to Oil and Mining Lease (OML) 120.
Under a prior loan agreement, First Bank had committed to financing OML 120 operations, with profits from the project to be split equally between the bank and General Hydrocarbons. However, the energy firm accused the bank of breaching the agreement by failing to disburse the agreed funds promptly.
Court documents revealed that the 12 December ruling prohibited First Bank from enforcing any claims or securities tied to the OML 120 operations, pending further deliberations.
Accusations of Misconduct
General Hydrocarbons has accused First Bank of disregarding court directives and deliberately misinforming the public about the ongoing case. In its Friday statement, the company appealed for patience from stakeholders, stating, “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 company also emphasised its historic role in stabilising First Bank, remarking, “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.”