Stella Oduah’s alleged $16 million debt: Court fixes June 29 to hear suit

Stella Oduah
Stella Oduah [Photo credit: African Examiner]

A Federal High Court Lagos on Tuesday, further adjourned till June 29, the hearing in a suit by Sterling Bank against a former Aviation Minister, Stella Oduah, over alleged indebtedness.

The bank alleged that Ms. Oduah and her company, Sea Petroleum and Gas company Ltd, were indebted to it in the sum of $16.4 million and N100.5 million.

The suit which was earlier adjourned for hearing of all pending applications, was, however, adjourned to June 29, because the trial judge, Ayokunle Faji, was indisposed.

The counsel representing all the parties were present in court.

The suit was initially pending before Justice Abdulaziz Anka of the same court, but was eventually reassigned to Mr. Faji to begin afresh.

In March, Justice Anka had issued an order, restraining Ms. Oduah and her companies, from making any withdrawal from its account and those of three other companies domiciled with 21 banks in the country.

The other companies include: Sea Shipping Agency Ltd, Rotary Engineering Services Ltd, and Tour Afrique Company Ltd.

The court had also issued an order directing the said commercial banks harbouring the asset of Ms. Oduah and the four companies to sequestrate their indebtedness as at November 2016.

The court also ordered that the money be kept in an interest yielding account in the name of the Chief Registrar of the federal court, pending the determination of the suit.

An affidavit sworn to by a staff of Sterling Bank, Segun Akinsanya, stated that on October 8, 2012, the bank granted a lease/Cabotage Vessel Finance Facility (CVFF) to Sea Petroleum and Gas Company.

He said that the facility was in the said sums to finance one unit of 5,000 MT tanker vessel.

He averred that the loan was secured by an unconditional personal guarantee of the companies’ director, Ms. Oduah.

Mr. Akinsanya also averred that same was supported by a statement of her net worth, legal mortgage of two properties worth N135 billion, and a power of attorney of the tanker vessel in favour of Sterling Bank.

He averred that also in support was a fully executed standing payment order and tripartite remittance agreement between it and Ms. Oduah.

It was further averred that on June 27, 2013, Sea Petroleum Company requested and was granted additional facilities in the sum of about $450,000 for post-delivery expenses.

Dangote adbanner 728x90_2 (1)

He said that also granted was about $993,000 to meet the requisite conditions in securing the release of the tanker.

Also, he averred that upon the persistent failure of the defendants to liquidate their indebtedness, Sterling Bank instructed its counsel to recover the debt.

He said that in spite of several reminders, and demands, the defendants had failed and refused to liquidate their indebtedness which had culminated to $16.4 million, and about N100.5 million as at November 2016.

He averred that there was imminent risk of the defendants dissipating the asset of the companies, and had urged the court to issue a restraining order.

Meanwhile, Ms. Oduah and her companies had urged the court to discharge the order made against them.

They had also filed a preliminary objection to the suit, urging the court to strike it out for lack of jurisdiction.


Coronavirus factsheet


PT Mag Campaign AD

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


TEXT AD: To advertise here . Call Willie +2347088095401...

BE THE FIRST TO KNOW! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application