The Editor-in-Chief of THISDAY Media Group and Chairman of Arise TV, Nduka Obaigbena’s legal team, has condemned a Federal High Court order freezing $225.8 million linked to him, his family, and his company, General Hydrocarbons Limited, as “an abuse of court processes.”
In a statement issued on Thursday, Abiodun Layonu & Co, solicitors for General Hydrocarbons, strongly refuted the December 30, 2024, court order obtained by First Bank of Nigeria Limited. The order restrains all Nigerian commercial banks from releasing or dealing with the funds in question.
The lawyers claim the December 30 order violates an earlier ruling delivered by Justice Ambrose Lewis-Allagoa on December 12, 2024. In that judgment, the Federal High Court prohibited First Bank from taking any steps to enforce financial instruments or assets of General Hydrocarbons while arbitration proceedings between the parties are ongoing.
“The restraining order of December 12, 2024, was made after hearing both parties and remains valid, as it has not been set aside on appeal,” the statement read. “First Bank deliberately failed to disclose this judgment while securing an ex parte order from another judge on December 30, 2024.”
The legal team described the bank’s actions as a calculated move to undermine their client’s position. “This is a blatant case of abuse of court process by First Bank,” the lawyers asserted.
The dispute between First Bank and General Hydrocarbons has a layered history. On October 30, 2024, Justice Lewis-Allagoa granted an injunction preventing First Bank from interfering with General Hydrocarbons’ ability to secure funding for its operations connected to Oil Mining Lease (OML) 120.
The court also restrained the bank from publishing financial statements suggesting that General Hydrocarbons owed $718 million or any other amount linked to its transactions with Atlantic Energy Drilling Concept Nigeria Limited. Further directives barred First Bank from appointing operators for OML 120 or enforcing financial instruments until arbitration concludes.
Obaigbena’s lawyers argue that the December 12 ruling takes precedence over the December 30 order obtained by First Bank, calling for full compliance with the earlier judgment.
“First Bank’s actions amount to a deliberate attempt to overreach our client and circumvent due process,” the legal team emphasized, urging the courts to address the matter swiftly to uphold the rule of law.
The case underscores ongoing tensions between financial institutions and corporate entities in Nigeria’s oil and gas sector, with significant implications for legal and business practices in the industry.