First Bank Urges Court to Maintain Freezing Order Against GHL.

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First Bank of Nigeria Limited has petitioned the Federal High Court in Lagos to maintain a freeze on the assets and accounts of General Hydrocarbons Limited (GHL) and it’s affiliated entities. The bank is seeking to recover a $225.8 million loan extended to the oil company.

The bank’s application was made in response to GHL’s request to lift the freeze order, which GHL claims was obtained through the concealment of crucial information. 

Justice Deinde Dipeolu had granted the order on December 30, 2024, restricting commercial banks from releasing or dealing with GHL’s assets or monies.

The order also barred GHL’s directors, including Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena, from transferring or dissipating their assets in Nigeria until the court decides on the interlocutory injunction.

Other respondents in the suit include several companies affiliated with GHL, as well as Mercuria Energy Trading SA, Trafigura PTE Limited, Glencore Energy UK Limited, Schlumberger Nigeria Limited, Schlumberger Overseas SA, and Baker Hughes Oilfield Services. 

GHL’s attorney, Dr. Abiodun Layonu (SAN), argued that the bank’s suit is an abuse of the court process. He claimed that the bank failed to disclose a previous order granted by Justice Ambrose Lewis-Allagoa, which restrained the bank from taking further action to recover the loan.

Layonu urged the court to dismiss the Mareva Injunction, stating, “The court was misled into granting the Mareva Injunction, and it has caused significant financial harm to GHL.”

In response, First Bank’s counsel, Victor Ogude, asserted that the bank did not deceive the court to obtain the order. Ogude emphasized that the bank provided all relevant facts in it’s affidavit supporting the suit.

Ogude pointed out that the parties involved in Justice Lewis-Allagoa’s case and those before Justice Dipeolu are different. He noted that nothing in the earlier order prevents First Bank from pursuing the current matter under different agreements.

Ogude also stated that GHL’s directors are named in the suit due to allegations of their involvement in the diversion of funds obtained by the oil company from the bank.

After listening to parties, the court has reserved it’s ruling on the matter for a later date.

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