The Federal High Court in Lagos, on Wednesday, fixed 8 December, to rule on who is legally authorised to represent General Hydrocarbons Limited (GHL) in its ongoing suit against the Asset Management Corporation of Nigeria (AMCON) and others.
At Wednesday’s resumed hearing, two Senior Advocates of Nigeria (SANs), Abiodun Layonu and Oluseye Opasanya, each claimed authority to represent the company.
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Mr Layonu told the court he remained GHL’s counsel on record and had complied with court directives by filing an application and an affidavit dated 3 December.
He urged the court to recognise him as the proper legal representative and challenged AMCON’s appointment of a Receiver/Manager, describing it as a violation of existing court orders.
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However, Mr Opasanya, appointed receiver/manager by AMCON on 18 September, argued that GHL’s directors had lost authority following the receivership.
He contended that any lawyer acting under the former directors’ instructions lacked legal standing, citing Supreme Court authority that the directors’ powers had been “frozen and paralysed.”
He asked the court to approve his representation on behalf of the Receiver.
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The trial judge Ambrose Lewis-Allagoa then fixed 8 December for ruling.
The unresolved dispute has stalled contempt proceedings filed by GHL against AMCON, which sought to enforce earlier interim orders restraining the agency from interfering with GHL’s assets.
Background of the dispute
The case centres on Oil Mining Leases (OMLs) 120 and 121, which were part of a structured loan-recovery arrangement involving First Bank of Nigeria, Atlantic Energy Drilling Concept Limited, and GHL.
Under the agreement, GHL was allowed to operate the assets and apply production revenues toward repayment of a decade-old, $490 million non-performing loan.
AMCON and First Bank later alleged operational and financial misconduct by GHL’s former management, including diversion of revenue, unpaid contractors, and risks of asset shutdown.
Citing urgency to protect the assets, AMCON appointed a receiver under Sections 34 and 48 of the AMCON Act, arguing that the former directors lacked authority to file the suit.
Since the appointment, the receiver has sought to stabilise operations while accusing GHL’s former management of attempting to use court orders to undermine the receivership.
Court filings show that Mr Lewis-Allagoa issued an interim injunction on 23 September, one day before AMCON appointed a receiver on 24 September, and four days before the Corporate Affairs Commission (CAC) registered the appointment on 27 September.
Legal battles across courts
The dispute has spanned multiple courts. In December 2024, First Bank obtained orders freezing over $225 million in assets linked to GHL and its majority owner, media executive Nduka Obaigbena.
In March, the Federal High Court in Port Harcourt dismissed First Bank’s claims of crude oil diversion by GHL, but the Court of Appeal overturned that judgement in September, directing that crude oil proceeds be paid into an interest-bearing escrow account.
The ongoing suit in Lagos seeks to restrain AMCON from enforcement actions, including the appointment of a Receiver, highlighting the complex legal battle over control of Nigeria’s oil assets and the management of non-performing loans.
GHL’s entry and role
GHL was brought in to manage OMLs 120 and 121 following federal government approval in 2021, after First Bank’s loan to Atlantic Energy Drilling Concepts became non-performing.
READ ALSO: Court fixes Wednesday for hearing of contempt charges against AMCON, lawyers
Mr Obaigbena said GHL’s role was to develop the assets and share profits with First Bank, but he accused the bank of frustrating the arrangement through delayed disbursements and new conditions.
A tripartite agreement between GHL, First Bank, and AMCON formalised the arrangement, assigning GHL responsibility for asset management and revenue allocation toward the loan.
Receivership and controversy
AMCON appointed Mr Opasanya as receiver/manager in September, citing alleged mismanagement by GHL’s former management.
The move effectively suspended the powers of the company’s directors, but the dispute over representation has prevented full enforcement of the receivership.
Mr Lewis-Allagoa will decide on 8 December which counsel is properly authorised to represent GHL.
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