The legal battle involving FirstBank, FBNQuest Merchant Bank, First Trustees, and the Nestoil Group has taken a significant turn after an attempt to reassign the case to another judge was reportedly rejected by the Chief Judge.
The request sought to remove the current judge overseeing the dispute between FBNQuest Merchant Bank, First Trustees, and companies linked to the Nestoil Group. However, the application was dismissed after a review of an earlier Supreme Court judgment in the case involving Neconde Energy Limited and FBNQuest Merchant Bank, among others.
According to reports, the Chief Judge found no legal justification for transferring the case to another court. The ruling reportedly noted that the Supreme Court neither criticized the trial judge nor instructed that the matter should be reassigned.
Instead, the Supreme Court was said to have frowned upon actions that appeared to delay the judicial process. The court reportedly described such conduct as an abuse of court procedures and suggested that it may have been driven by motives unrelated to the fair resolution of the dispute.
With the reassignment request now unsuccessful, attention has shifted to the major financial risks facing the banks and other parties involved.
Nestoil and Neconde are reportedly preparing to file a damages claim estimated at more than $1.8 billion against several institutions and individuals. Those expected to be named in the lawsuit include FBNQuest Merchant Bank, First Trustees, FirstBank, Access Bank, Zenith Bank, United Bank for Africa (UBA), the Receiver-Manager, and other parties connected to the dispute.
The oil companies claim that actions taken by the banks and the Receiver negatively affected their operations and led to significant losses. According to their allegations, crude oil production dropped from around 60,000 barrels per day to below 40,000 barrels per day during the period in question.
They also argue that planned drilling activities involving the Pathfinder 500 drilling rig were disrupted, causing delays in development projects and affecting expected revenue generation.
As a result of these operational setbacks, the companies estimate that they suffered losses exceeding $1.8 billion. They are seeking to recover these losses through legal action.
The dispute has expanded beyond the oil sector. Drawcok Estate Limited has also filed a separate lawsuit seeking N100 billion in damages. The company alleges that prime commercial properties located in Victoria Island, Lagos, were wrongfully taken over by FBNQuest Merchant Bank, First Trustees, the Receiver, and other parties.
What started as a debt recovery matter has now developed into a complex, multi-billion-dollar legal dispute involving major financial institutions, energy companies, and property interests.
Legal analysts believe the failed attempt to reassign the case could represent a crucial moment in the proceedings. If the claims proceed successfully, the banks and other defendants could face substantial financial liabilities as well as reputational challenges.
The coming months are expected to be critical as the courts consider the various claims and determine the responsibilities of the parties involved in one of the most closely watched corporate legal disputes in Nigeria.
