The corporate clash between Femi Otedola’s First Bank and Nduka Obaigbena’s General Hydrocarbons Limited has reached a new peak with the Nigerian Navy’s seizure of crude oil cargo, following a Federal High Court order.
On January 9, Justice E.A. Obile in Port Harcourt directed the Navy to detain crude oil aboard the FPSO Tamara Tokoni until General Hydrocarbons provides a bank guarantee of $19.7 million plus additional costs. The Navy has implemented this order and established surveillance around the vessel.
At the heart of this dispute is a substantial debt. First Bank claims General Hydrocarbons owes $225.8 million from defaulted credit facilities provided for oil operations. In contrast, General Hydrocarbons, led by THISDAY and ARISE Media Group Chairman Obaigbena, contends that First Bank failed to fulfill its loan commitments for operations on OML 120.
The legal battle has intensified with competing court orders. First Bank secured an asset freeze against Obaigbena and his family directors on December 30, 2024. However, General Hydrocarbons had earlier obtained an injunction on December 12 preventing First Bank from blocking their funding access or enforcing loan securities.
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Through their legal representatives, General Hydrocarbons has condemned First Bank’s actions as procedurally improper and in violation of existing court orders. First Bank maintains its asset recovery efforts are legally sound and necessary to recoup the outstanding debt.
The Port Harcourt Federal High Court will resume hearing the main case on February 9, 2025.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
