FirstBank and its affiliates are facing mounting legal challenges after efforts to reassign the ongoing Nestoil/Neconde case reportedly failed, with a N100 billion damages suit already before the Federal High Court and a separate $1.8 billion claim expected to be filed.
The application seeking the reassignment of the case suffered a setback after the Honourable Chief Judge reportedly found no basis for the request in the Supreme Court’s judgment in Neconde Energy Ltd. v. FBNQuest Merchant Bank Ltd & Ors.
According to sources familiar with the matter, the Supreme Court did not fault the trial judge but instead criticized attempts to delay or frustrate the proceedings, describing such conduct as suggestive of ulterior motives and an abuse of the judicial process.
The development is said to have effectively ended efforts to remove the trial judge, reinforcing the binding nature of the apex court’s decision.
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Meanwhile, FirstBank and its affiliates are now contending with fresh litigation on multiple fronts.
Drawcok Estate Limited has filed a N100 billion damages suit against FBNQuest Merchant Bank, First Trustees, their Receiver-Manager and other defendants, alleging the unlawful takeover and occupation of its commercial properties located on Akin Adesola and Saka Tinubu Streets in Victoria Island, Lagos.
The company claims it was neither a party to the underlying proceedings nor subject to the enforcement order allegedly relied upon by the defendants, but that its properties were nonetheless forcefully seized, resulting in significant commercial losses and reputational damage.
In a separate development, Nestoil and Neconde are preparing what could become one of Nigeria’s largest commercial damages claims in the oil and gas sector.
The companies are expected to seek approximately $1.8 billion in damages against FBNQuest Merchant Bank, First Trustees, FirstBank, Access Bank, Zenith Bank, the Receiver-Manager and other parties.
According to sources, the planned suit will allege that actions taken by the lenders and the Receiver unlawfully disrupted critical oil production operations, causing output to decline from about 60,000 barrels per day to below 40,000 barrels per day while also affecting planned drilling operations and field development programmes.
The companies reportedly estimate that production losses, operational disruptions and missed business opportunities have resulted in damages of approximately $1.8 billion.
The failed reassignment bid, the pending N100 billion Drawcok Estate suit and the anticipated $1.8 billion claim by Nestoil and Neconde mark a significant escalation in the legal dispute.
What began as a debt recovery process has evolved into a complex legal battle that could expose the financial institutions involved to substantial financial liabilities if the claims succeed in court.
