A consortium of foreign financial institutions, Glencore Energy UK Limited, African Finance Corporation and Commercial Bank of Mauritius, sued First Bank Nigeria Trustees Limited. The suit was brought against both the FBN Trustee and its appointed trustee, Abubakar Sulu Gambari SAN, over what the foreign financiers claim is an illegal attempt to seize control of Nekonde Energy Limited’s interest in Oil Mining Lease 42 (OML 42).
The foreign lender appointed FBN Trustee as a safe receiver and extended the loan facility to Nekonde on agreed terms.
International financiers, who have accused FBN Trustees of illegal asset deprivation and breach of trust in court proceedings, have taken FBN Trustees Limited and its trustee Abubakar Sulu Gambari SAN to court, accusing them of a deliberate attempt to illegally seize the shares of Nekonde Energy Limited in Oil Mining Lease 42 (OML 42).
The foreign lenders allege that the FBN trustee abdicated its role as a neutral trustee, ignored binding loan terms and acted in favor of a consortium of Nigerian banks that had no debt claim against Nekonde Energy.
“Transition from trustee to executor”
According to court filings, the FBN receiver was appointed to protect the interests of a senior foreign lender, an international financial institution and an oil trading company. They allege that the FBN Trustee instead crossed the line and secretly placed a second illegal security on Nekonde’s OML 42 interest without the necessary consent.
The foreign financier said its consent was clearly refused.
Nevertheless, the FBN trustee allegedly carried out the complaint, an act that the foreign financier describes as unauthorized, illegal and in clear breach of trust.
No debt, no rights, no authority.
The complaint emphasizes that Nekonde Energy has no obligation to the Nigerian banks that currently claim rights to OML 42. Foreign lenders argue that this makes the collateral baseless in the first place and makes any enforcement action arising from it legally null and void.
They also challenge the appointment of a receiver as invalid and based on trumped-up allegations.
High-stakes gamble, wider fallout
Legal experts have warned that the case raises serious questions about the governance and ethics of Nigeria’s banking and oil sectors. Allegations that a trustee (FBN Trustee) linked to a major bank (First Bank Nigeria PLC) attempted to take coercive control of oil assets are likely to upset foreign investors.
What foreign financiers want
The foreign financier is asking the court to cancel the disputed securities, remove the FBN administrator and administrator Abubakar Sulu Gambari SAN, and award damages for the losses suffered.
why is it important
OML 42 is a strategic oil asset. The outcome of this case could determine whether trust agreements in Nigeria can be trusted or abused.
For now, the message from foreign lenders is straightforward: trustees cannot invent collateral, ignore contracts, or seize assets to which they are not entitled.
