Court Issues Warnings to Bank Executives Over $1 Billion Debt Dispute

The Federal High Court in Abuja has warned the Managing Directors of three major Nigerian banks—First Bank of Nigeria Limited, Access Bank Plc, and Zenith Bank Plc—that they risk imprisonment for allegedly disobeying a court order related to a significant debt dispute. This warning was conveyed through Form 48 Notices of Consequences of Disobedience to Court Order, which stem from an interim directive issued on November 6, 2025, in Suit No. FHC/ABJ/CS/2369/2025.

The case involves a high-profile dispute concerning onshore oil assets and the Floating Storage and Offloading vessel, FSO Ugo Ocha, associated with interests in the OML 42 Joint Venture, in which the Federal Government of Nigeria holds a 55% stake. The notices, dated November 13, 2025, were served on the Managing Director of First Bank at both its Marina Head Office in Lagos and its Abuja main branch located on Muhammadu Buhari Way.

In the notices, the court emphasized the importance of adhering to its directive that all parties must maintain the status quo. The court warned that any disobedience could lead to charges of contempt. The warning explicitly stated, “Unless you stop further disobedience and comply with the direction contained in the order… you will be guilty of contempt of court and will be liable to be committed to prison.” A copy of the original court order was included to underscore the seriousness of the situation.

The initial order articulated that the ex-parte application for Interim Injunction was refused, and it directed all parties to maintain the status quo as of November 6, 2025. The court also specified that parties are prohibited from dealing with the subject matter of the litigation pending the hearing and determination of the Motion on Notice for Interlocutory Injunction.

This legal action was initiated by Neconde Energy Limited and White Dove Shipping Company Limited, among others, against First Bank, Access Bank, and five additional defendants. The issuance of Form 48 signifies the commencement of contempt proceedings, with the notices being served between November 7 and 13, 2025. The court’s warning indicated that any actions taken that contravene its instructions to preserve the status quo would constitute contempt.

The court has scheduled the hearing for the motion regarding the interlocutory injunction for December 4, 2025. It has made it clear that any violations of its directive prior to that date will result in severe legal consequences. The ongoing developments in this case highlight the high stakes involved, with potential implications for the financial institutions and their executives should they fail to comply with court orders.