First Bank begs court to maintain asset freeze on General Hydrocarbons

First Bank of Nigeria Limited (FBN) has appealed to the Federal High Court in Lagos to uphold its order to freeze the assets and accounts of General Hydrocarbons Limited (GHL) and its related entities.

This move is pending the resolution of a lawsuit aimed at recovering a $225.8 million loan given to the oil company. Represented by lawyer Victor Ogude, the bank responded to GHL’s application to lift the freeze, claiming the order was obtained without full disclosure of important information.

Justice Dipeolu granted an ex-parte order on December 30, 2024, preventing all commercial banks from releasing or handling any assets or funds belonging to General Hydrocarbons Limited, its agents, subsidiaries, or sister companies up to the amount claimed.

The judge also issued a preliminary injunction, stopping the directors of General Hydrocarbons Limited—Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena—from transferring or dissipating any of their Nigerian assets, whether movable or immovable, until a decision is made on the Motion on Notice for an interlocutory injunction.

The suit also includes several other respondents, such as GHL 121 Ltd, Aimonte Nigeria Limited, Calidin Global Resources Limited, CESL Oyo Production BBC Limited (owner of FPSO Tamara Tokoni), CESL Oyo Production O&M Limited, and VITOL SA, among others.

GHL’s lawyer, Abiodun Layonu, argued for lifting the order, claiming the bank’s lawsuit is an abuse of the judicial process. He further accused First Bank of not disclosing an earlier order by Justice Ambrose Lewis-Allagoa, which restrained the bank from taking further action to recover the loan until arbitration was completed.

Layonu urged the court to dismiss the Mareva Injunction, asserting that the court was misled into granting it, resulting in significant financial harm to GHL. In response, Ogude defended that First Bank had not misled the court and had provided all necessary facts in its supporting affidavit.

He pointed out that the parties in Justice Lewis-Allagoa’s case were different from those before Justice Dipeolu, and that the earlier order did not prevent First Bank from pursuing the current case under different agreements.