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Court Freezes Assets of Nduka Obaigbena’s General Hydrocarbons Over $225.8M Debt

Published

6 hours ago

Jan 10, 2025.

Court freezes assets of General Hydrocarbons Limited over $225M debt.
First Bank and FBNQUEST Trustees claim unpaid loan facilities.
Injunctions prevent asset transfer by company executives and banks.

The Federal High Court in Lagos State has issued an ex-parte order freezing the assets and bank accounts of General Hydrocarbons Limited across all commercial banks in Nigeria.

EKO HOT BLOG reports that this legal action follows a lawsuit initiated by First Bank of Nigeria Limited and FBNQUEST Trustees Limited, which allege that the company owes them an outstanding debt of $225,802,379.69 (approximately ₦172 billion), stemming from loan facilities granted as of September 30, 2024.

The court directive bars commercial banks from releasing or managing any assets or funds owned by General Hydrocarbons Limited, including those associated with its subsidiaries, agents, or sister companies, up to the amount claimed by the plaintiffs.

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This measure aims to prevent the dissipation or transfer of the company’s assets while the lawsuit is ongoing.

Under the Banks and Other Financial Institutions Act (BOFIA), the Central Bank of Nigeria (CBN) holds the authority to freeze accounts suspected of illicit transactions. However, in this instance, the order was sought by private entities rather than the CBN.

The court order, signed by Justice D.I. Dipeolu on December 30, 2024, and referenced as suit number FHC/L/CS/2378/2024, was obtained by the plaintiffs’ counsel, Victor Ogude (SAN), on December 27 and issued shortly thereafter.

The Registrar of the Court, Orakwe Nonye Ossy, officially enrolled the directive.

Defendants in the Case
General Hydrocarbons Limited is the principal defendant in the suit, alongside other parties listed as co-defendants. These include Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena, among others.

Additional companies named in the suit include GHL 121 Ltd, Aimonte Nigeria Limited, Calidin Global Resources Limited, CESL Oyo Production BBC Limited, and several global entities such as VITOL SA, Mercuria Energy Trading SA, Trafigura PTE Limited, and Glencore Energy UK Limited.

The court has directed specific defendants to provide a detailed statement disclosing the volume of products lifted from the 8th defendant or Oil Mining Lease (OML) 120 since production commenced. This disclosure is intended to aid the plaintiffs in assessing the assets and transactions of General Hydrocarbons Limited.

Injunctions Issued
The court also granted an interim injunction restraining the directors of General Hydrocarbons Limited—Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena—from transferring or disposing of their personal or corporate assets within Nigeria.

These assets include both movable and immovable property and are restricted pending the hearing and determination of the plaintiffs’ motion for an interlocutory injunction.

Justice Dipeolu further issued a Mareva injunction, preventing all Nigerian commercial banks from releasing funds or handling transactions for the defendants’ accounts.

The injunction encompasses banks such as Access Bank, First Bank, Zenith Bank, GTB, and others, restricting them from dealing with any funds or assets linked to the defendants, including associated accounts under specific BVNs.

It partly read:
“An order of Mareva Injunction restraining all the commercial banks in Nigeria, to wit: Guaranty Trust Bank Limited, Access Bank PLC, Citibank Nigeria Limited, Carbon Bank, Ecobank Nigeria PLC, Fidelity Bank PLC, First Bank of Nigeria Limited, First City Monument Bank PLC, Flutter Wave, Globus Bank, Heritage Bank Limited, Jaiz Bank, Keystone Bank Limited, OPay Digital Services Limited, Palmpay Limited, Paystack Payments Limited, Piggyvest, Momo Payment Service Bank Limited, Polaris Bank Limited, Providus Bank, Stanbic IBTC Bank Nigeria Limited, Standard Chartered Bank, Sterling Bank PLC, Suntrust Bank Limited, Union Bank of Nigeria PLC, United Bank for Africa PLC, Unity Bank PLC, Wema Bank PLC, Zenith Bank PLC, and all other financial institutions operating in Nigeria, from releasing or dealing in any manner whatsoever with any and all monies and/or assets due to the 1st Defendant from any account maintained by the 1st Defendant, their agents, privies, subsidiaries, and/or sister companies with any of the said Banks wherever situated, up to the amount of the Plaintiffs/Applicants’ total claim of US$225,802,379.69 (Two Hundred and Twenty-Five Million, Eight Hundred and Two Thousand, Three Hundred and Seventy-Nine Dollars and Sixty-Nine Cents), being the outstanding indebtedness on the 1st Defendant’s account with the 1st Plaintiff/Applicant as of 30th September 2024 in respect of the loan facilities granted to the 1st Defendant by the 1st Plaintiff/Applicant pending the hearing and determination of the Motion on Notice for interlocutory injunction.”

Historical Context
The case draws parallels with earlier controversies involving General Hydrocarbons Limited. Notably, in 2015, reports emerged linking the company to alleged mismanagement of funds during Sambo Dasuki’s tenure as National Security Adviser.

Court filings revealed that ₦670 million was transferred from the NSA’s account with the CBN to General Hydrocarbons Limited’s account at Guaranty Trust Bank, reportedly for “energy consulting” services. These allegations add further scrutiny to the company’s financial dealings.