The Federal High Court in Lagos has issued an order freezing the accounts of General Hydrocarbons Limited across all financial institutions in Nigeria. The court has prohibited banks from releasing funds to the company, which is owned by Mr. Nduka Obaigbena, the Chairman of Arise and publisher of ThisDay Newspapers.
Justice Deinde Dipeolu granted the Mareva injunction following an application from First Bank of Nigeria Limited and FBNQuest Trustees Limited, citing an alleged outstanding debt of $225,802,379.69 (approximately N350 billion).
A Mareva injunction, also known as a “freezing order,” prevents a defendant from moving any assets they own or control to protect the plaintiff’s legal claims.
In addition to General Hydrocarbons and Obaigbena, the defendants include Efe Damilola Obaigbena and Olabisi Eka Obaigbena, who are directors of the company. Other entities named in the order are GHL 121 Ltd, Aimonte Nigeria Limited, Calidin Global Resources Limited, CESL Oyo Production BBS Limited (owner of FPSO Tamara Tokoni), CESL Oyo Production O & M Limited, as well as Vitol SA, Mercuria Energy Trading SA, Trafigura PTE Limited, Glencore Energy UK Limited, Schlumberger Nigeria Limited, Schlumberger Overseas SA, and Baker Hughes Oilfield Services.
The financial institutions that have been restrained from releasing funds include Guaranty Trust Bank Limited, Access Bank Plc, Citibank Nigeria Limited, Carbon Microfinance Bank, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria Limited, First City Monument Bank Plc, Flutterwave, Globus Bank, Heritage Bank Limited, Jaiz Bank Plc, Keystone Bank Limited, and Opay Digital Services Limited.
The rest are Palmpay Limited, Paystack Payments Limited, Piggyvest, Momo Payment Service Bank Limited, Polaris Bank Limited, Providus Bank Plc, Stanbic Ibtc Bank Nigeria Limited, Standard Chartered Bank Plc, Sterling Bank Plc, Suntrust Bank Limited, Union Bank Of Nigeria Plc, United Bank For Africa Plc, Unity Bank Plc, Wema Bank Plc and Zenith Bank Plc.
Justice Dipeolu granted a Mareva injunction restraining all commercial banks and fintech companies from releasing or handling any funds or assets belonging to the first defendant, General Hydrocarbons Limited, from any account maintained by the company, its agents, subsidiaries, or affiliates, across any of the listed banks. This restriction is in place until the total amount of the plaintiffs’ claim, which is $225,802,379.69 (representing the outstanding debt on General Hydrocarbons’ account with the first plaintiff as of September 30, 2024), is settled or further court orders are issued.
The court also barred all banks from releasing or handling any funds or assets owed to the second to fourth defendants from accounts held by them, including accounts linked to their BVNs: 22220558365 (second defendant), 22363940584 (third defendant), and 22363940584 (fourth defendant), up to the same claimed amount of $225,802,379.69, which reflects the indebtedness on General Hydrocarbons’ account with the plaintiffs.
In addition, Justice Dipeolu issued an interim injunction preventing the first to fourth defendants, along with their agents, officers, subsidiaries, or any affiliated parties, from transferring or dealing with any of the funds in their accounts held at the aforementioned banks. This order applies until the plaintiffs’ total claim of $225,802,379.69 is addressed.
The judge further ordered that all banks involved file and serve an affidavit within seven days, detailing the balances in the accounts of the first to fourth defendants. This affidavit must be accompanied by a certified statement of the defendants’ account activity, covering the period from the account’s opening to the date the court order is served.
Additionally, the court directed the eighth to thirteenth defendants to provide a statement detailing the quantity of products lifted from the Floating Production Storage and Offloading (FPSO) Tamara Tokoni or OML (Oil Mining Lease) 120 since production began at OML 120.
The court granted an order of interim injunction restraining them and any other third parties from dealing with any assets and receivables related or connected with OML 120 without depositing the proceeds to General Hydrocarbons’ account in First Bank, pending the hearing and determination of the Motion on Notice for interlocutory injunction.
Justice Dipeolu further restrained the first to fourth defendants whether by themselves, members, shareholders, agents, servants, proxies, or allies from transferring and/or dissipating, diminishing or dealing with any interest in the first defendant’s assets.
These include but are not limited to crude stock, insurance policies, all forms of stock of shares, all forms of receivables and contracts which have been pledged as securities for the loan facilities granted by First Bank to General Hydrocarbons, pending the hearing and determination of the Motion on Notice for interlocutory injunction.
The court barred the second to fourth defendants, being directors of General Hydrocarbons, whether by themselves, agents, servants, proxies, or allies from transferring and/or dissipating any interest in their assets wherever located in Nigeria, movable or immovable, pending the determination of the Motion on Notice for interlocutory injunction.
Justice Dipeolu made the ex-parte order on December 30 based on a motion moved by Victor Ogude (SAN), counsel for the plaintiffs/applicants.
A copy of the order was obtained by our reporter yesterday.
The court also granted the plaintiffs permission to serve the originating summons for the suit outside Nigeria, specifically for the 10th, 11th, 12th, 13th, and 15th defendants, who will be served via DHL. These defendants are required to enter an appearance within 30 days of being served with the originating processes.
General Hydrocarbons had acquired oil blocks OML 120/121, previously owned by Atlantic Energy. Following this, the company entered into an agreement with First Bank to finance the operation of OML 120, while OML 121 was pledged as collateral to the bank.
Under this lender-borrower arrangement, First Bank lent General Hydrocarbons significant sums, which the bank now claims exceed $225 million, demanding repayment from the oil company.
Justice Dipeolu has adjourned the matter until January 20 for a hearing on the motion on notice.
