First Bank Secures Court Order to Seize Oil Vessel Over $225 Million Debt

In a dramatic turn of events, a Federal High Court in Port Harcourt has granted First Bank of Nigeria Limited the authority to seize an oil vessel belonging to General Hydrocarbons Limited (GHL), owned by the prominent media mogul and publisher of ThisDay newspaper, Nduka Obaigbena. The decision comes as part of a bid to recover an outstanding debt of $225 million owed by GHL to the bank.

The court order, issued on January 15, 2025, also includes a warrant for the arrest of the vessel, which was reportedly located in Rivers State waters. The vessel, used for oil exploration, has become the focus of a legal battle that has escalated over the years. Justice Emmanuel Obile, who presided over the case, directed the Nigerian Navy and other law enforcement agencies to ensure compliance with the court’s directive.

General Hydrocarbons Limited’s debt originates from a loan facility secured from First Bank. The funds were reportedly used to finance oil exploration and production activities. Despite multiple attempts by the bank to recover the debt, GHL failed to meet its repayment obligations, prompting First Bank to seek legal intervention.

This isn’t the first time GHL has faced scrutiny over its financial dealings. Reports indicate that the debt situation has been compounded by alleged mismanagement and operational challenges. The inability to service the loan has placed over 93 oil rig workers employed by the company at risk, as their livelihoods depend on the vessel’s activities.

Justice Obile emphasized the gravity of the situation, noting that the court’s intervention aims to prevent further economic losses and safeguard the interests of creditors. The court’s ruling allows First Bank to seize and detain the vessel until the debt is settled or an amicable resolution is reached.

This case has highlighted concerns about corporate accountability and financial transparency within Nigeria’s oil and gas sector. Industry experts suggest that such incidents could undermine investor confidence and disrupt operations critical to the country’s economy. Moreover, it underscores the risks banks face in financing capital-intensive projects in the sector.

Nduka Obaigbena, a figure often associated with high-profile ventures, has yet to issue a statement regarding the court’s decision. Meanwhile, First Bank has reaffirmed its commitment to protecting its financial interests and ensuring that due process is followed in debt recovery.

As the case unfolds, stakeholders in Nigeria’s financial and oil sectors are keenly watching the developments, which may set a precedent for future debt recovery efforts.