First Bank vs. General Hydrocarbons: Crude Oil Cargo Owned by Arise News Founder Nduka Obaigbena Seized by Nigerian Navy

The ongoing legal dispute between First Bank, owned by billionaire Femi Otedola, and General Hydrocarbons Limited, chaired by media mogul Nduka Obaigbena, has escalated significantly. On January 9, the Federal High Court in Port Harcourt issued an order for the arrest and detention of a crude oil cargo aboard the Floating Production Storage and Offloading (FPSO) vessel, Tamara Tokoni. The vessel belongs to General Hydrocarbons, an oil servicing firm linked to Mr. Obaigbena.

The court’s decision stems from a $225.8 million debt claim by First Bank, which alleges that General Hydrocarbons failed to meet repayment deadlines on loans obtained to finance oil and mining operations. The court ordered the detention of the crude oil cargo until the defendants provide a satisfactory guarantee of $19.7 million plus interest and costs. Nigerian Navy personnel have since acted on the directive, detaining the cargo and ensuring its security.

Justice E.A. Obile’s ruling also mandated agencies such as the Nigerian Navy, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Ports Authority (NPA) to assist in enforcing the arrest. Security officials were instructed to patrol and monitor the cargo to prevent its dissipation. The case has been adjourned until February 9, 2025, for further proceedings.

This development follows a broader legal battle between First Bank and Mr. Obaigbena’s family, who are accused of accumulating substantial debt through General Hydrocarbons. In December 2024, a Federal High Court in Lagos froze the accounts and assets of Mr. Obaigbena and his two daughters, who hold directorship roles in the company. However, General Hydrocarbons, through its legal counsel, has disputed the court orders, describing them as procedural abuses and accusing First Bank of failing to fulfill its loan disbursement obligations.

Despite these allegations, First Bank denies any wrongdoing, maintaining that its actions are within legal bounds.