$225.8m Debt: court orders arrest of crude oil cargo linked to Obaigbena

A Federal High Court in Port Harcourt has ordered the detention of crude oil cargo on the FPSO vessel Tamara Tokoni, owned by General Hydrocarbons Limited, a company linked to Nduka Obaigbena, chairman of THISDAY and ARISE Media Group.  The legal case involves a debt recovery dispute between General Hydrocarbons and First Bank, led by businessman Femi Otedola.   The court, presided over by Justice E.A. Obile, issued the ruling on January 9, directing the Nigerian Navy and other agencies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Ports Authority (NPA), to ensure the detention of the vessel and its cargo. READ ALSO: Reps Demand 2024 Budget Breakdown, Audited Accounts of TETFund  The order will remain in effect until General Hydrocarbons provides a guarantee of $19.7 million, along with interest and legal costs, from a first-class Nigerian bank.   First Bank alleged that General Hydrocarbons owes $225.8 million due to missed repayment deadlines on credit facilities extended to the company.  The financial institution also claimed that Obaigbena and his family members, who hold key positions in the company, used the loans to amass significant debt without fulfilling repayment obligations.   In a prior development, the Federal High Court in Lagos froze the accounts and assets of Obaigbena, his company, and family members involved in General Hydrocarbons. The bank justified this move as necessary to recover outstanding debts.   READ ALSO: UNILAG Awards First Class Degrees to 76 Females, 30 Males General Hydrocarbons, through its legal representatives, has criticized the court orders as an abuse of the judicial process.  The company alleged that First Bank violated an earlier court ruling permitting it to access funding for oil and mining lease operations.  According to the company, the bank failed to disburse funds on time, disrupting oil exploration activities under their loan agreement.   The dispute has raised concerns about the management of financial agreements in the oil and gas sector.  The case has been adjourned to February 9, 2025, for further proceedings, leaving the fate of the detained crude oil cargo uncertain.  

After 5-year jail term: Ex-Rep Member, Farouk Lawan walks out of prison

Looking forlorn and old, former member of the House of Representatives, Farouk Lawan, walks out of the Kuje prison, Abuja, after completing his five-year jail term. The Supreme Court had in January affirmed the five-year jail term handed to Lawan by the Court of Appeal. Lawan was convicted and sentenced to prison in 2021 for accepting a $500,000 bribe from businessman, Femi Otedola, Chairman of Zenon Petroleum and Gas Ltd. In a unanimous judgment, a five-member panel affirmed the 2022 judgment of the Court of Appeal, which upheld Lawan’s sentencing to five years in respect of only count three on the three-count charge on which he was tried at the High Court of the Federal Capital Territory (FCT). In the lead judgment prepared by Justice John Okoro but read by Justice Tijjani Abubakar, the apex court found that Lawan’s appeal was without merit and dismissed it. A video shared online on Tuesday showed Lawan’s release from Kuje prison, looking tired and old.

Privatization: FG gives Transcorp Power discharge certificate

Transcorp Shares

Transcorp Power Limited has received the Discharge Certificate from the Federal Government in Abuja. Nigerian Anchor reports that Transcorp Power Limited, a leading power generation company, located in Ughelli Delta State, is the first power generation company to fulfil all privatisation obligations. Transcorp Power Limited, with an installed capacity of 972 megawatts, was presented with a post-privatisation discharge certificate by the Federal Government, following fulfilment of all privatisation conditions. This development means that Transcorp Power will no longer be subjected to post-privatisation monitoring, and it is the first privatised power generation company to achieve this milestone since the power sector privatisation commenced in 2013. One of the key targets set for Transcorp is a minimum available capacity of 670 megawatts. The Discharge Certificate was presented at the meeting of the National Council of Privatisation (NCP) by the Vice President, Professor Yemi Osinbajo, to Mr. Tony Elumelu, Group Chairman, Transnational Corporation Plc (Transcorp), owner of Transcorp Power. Osinbaho, who also doubles as the Chairman of NCP, commented on the ceremony. “Post privatisation monitoring is an important aspect of the Federal Government’s privatisation programme. “Transcorp Power has been able to ensure compliance and meet the expectations of post privatisation deliverables. “I commend Tony Elumelu and his Transcorp team for this feat. I urge Transcorp Group to continue in that path and even do better. This being the first, should not be the last post privatisation discharge event,” he said. Elumelu thanked the Federal Government for their trust and confidence in Transcorp. “In addition to fulfilling the post privatisation performance criteria, Transcorp has driven a strong indigenous agenda – our plants are managed and fully operated by Nigerians, creating jobs and reducing unemployment in the country. “Safety is very important to us as well, since we began operations in 2013, we have recorded zero incidents till date. Speaking at the Event, the Director General of the Bureau of Public Enterprises, Alex Okoh, congratulated the Board and Management of Transcorp for the milestones achieved in turning around the enterprise. He noted that Transcorp had met and exceeded the performance targets and all other covenanted obligations agreed during the signing of the privatisation agreement in 2013. “Transcorp Power increased the generation capacity of the plant by 227 per cent from the operational status as at handover in 2013. “Capital expenditure totalling N58.612 billion was covenanted for phase1, phase 2 as ‘additional investment’ but the actual investment made by Transcorp was the sum of N83.85bn, leading up to a score of 143 per cent,” he said. Transnational Corporation Plc acquired Ughelli Power Plc (now Transcorp Power Limited) from the Federal Government of Nigeria on November 1, 2013 when the power sector was privatised. At the time of acquisition, the plant had an available capacity of 160 megawatts. Transcorp invested and increased the available capacity to 680.83 megawatts (being a 227 per cent increase) within four years of takeover, surpassing the five-year target of 670 megawatts set by the Bureau for Public Enterprises (BPE).