First Bank wins major arbitration against Nduka Obaigbena’s General Hydrocarbons Limited

In a significant legal ruling, First Bank of Nigeria Limited has secured a comprehensive victory over General Hydrocarbons Limited (GHL), an oil company owned by media mogul Nduka Obaigbena.

An arbitral tribunal has dismissed all of GHL’s claims and ordered the company to pay First Bank a total of $112,100 and ₦111.25 million to cover legal and arbitration costs.

The dispute centered on a Subrogation Agreement from 2021, related to financing for the development of Oil Mining Lease (OML) 120 and the repayment of a substantial $718 million debt. GHL had accused First Bank of breaching this agreement by failing to provide promised financing and obstructing its efforts to secure funds from other sources.

However, the tribunal, presided over by Justice Kumai Bayang Akaahs, found these claims to be “unsubstantiated and devoid of merit.”

The ruling fully upheld First Bank’s position that its financing obligations were conditional upon standard due diligence and regulatory approvals.

The tribunal concluded that the bank had made credible financing offers and that its actions, including the introduction of an Independent Asset Manager, were consistent with the contract.

As a result, all reliefs sought by GHL—including damages and injunctions against First Bank—were denied. GHL was ordered to pay the awarded costs within 30 days or face accruing interest.

This arbitration win is the latest development in a series of courtroom battles between the two parties, which have previously involved court orders to arrest crude oil cargo and freeze Obaigbena’s assets over the debt.

The verdict represents a major vindication for First Bank, reinforcing its rights as a creditor and underscoring a broader trend in Nigeria’s financial sector towards stricter enforcement of contractual obligations and creditor protection.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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