In a dramatic twist to a long-running financial saga, First Bank of Nigeria Limited has intensified its efforts to recover a staggering $718 million from Nduka Obaigbena, the flamboyant publisher of ThisDay newspaper, and his oil-servicing firm, General Hydrocarbons Limited (GHL). The legal showdown, now involving accusations of breached contracts, frozen accounts, and high-stakes corporate intrigue, has captivated Nigeria’s financial and business circles.
The Debt That Won’t Disappear
The financial behemoth, valued at over ₦1 trillion on the Nigerian Exchange, alleges that Obaigbena and his associates owe a massive sum linked to a series of credit facilities extended for the development of oil mining assets. According to First Bank, GHL not only failed to meet repayment obligations but also engaged in diversion of crude oil proceeds intended as collateral for the loans.
“Upon realisation of breaches on the part of GHL, including diversion of proceeds, we requested an independent operator to oversee the financed assets transparently,” the bank said in a statement. “Instead, GHL rejected our requests and demanded more funding.”
Frozen Assets and Legal Showdowns
In response to First Bank’s legal action, the Federal High Court in Lagos has issued a Mareva injunction freezing $225.8 million linked to Obaigbena and his affiliates. Justice Deinde Dipeolu ordered all commercial banks to block transactions involving the accounts of Obaigbena and GHL.
But Obaigbena, known for his larger-than-life persona, is not backing down. Through his legal team, he accuses First Bank of abusing court processes, citing an earlier judgment by Justice Lewis Allagoa that restrained the bank from enforcing claims while arbitration proceedings were ongoing.
“A Vendetta,” Claims Obaigbena
Obaigbena argues that First Bank’s actions are an attempt to force him into a settlement under questionable terms. His lawyers described the bank’s tactics as “a grave affront to justice.” They further claim that the oil leases at the heart of the controversy were instrumental in rescuing First Bank from potential financial ruin during former President Muhammadu Buhari’s administration.
A Corporate Giant Stands Firm
First Bank, however, remains resolute. “We acted within the bounds of the law to protect our interests and recover funds owed by GHL,” the bank said. “The courts do not support or protect illegalities and breaches of contracts.”
An Unfolding Drama
This financial drama, replete with allegations of corporate malfeasance and high-profile legal manoeuvres, has kept the nation riveted. Observers are keenly watching to see whether First Bank’s pursuit of debt recovery will prevail or if Obaigbena’s counterclaims will hold water in court.
One thing is clear: the battle between the financial institution and one of Nigeria’s most prominent media moguls is far from over, and the stakes couldn’t be higher.
