A Federal Capital Territory (FCT) High Court in Abuja has nullified arbitration proceedings on the International Chamber of Commerce (ICC), London, instituted in opposition to indigenous power firm, Aiteo Eastern E&P Company Limited, by a gaggle of lenders who partly financed its acquisition of Oil Mining Lease (OML) 29.
The courtroom declared the arbitration a violation of its subsisting injunctive orders.
Aiteo acquired OML 29 and the Nembe Creek Trunk Line (NCTL) from Shell in a landmark $3.01 billion transaction concluded in 2014. The deal was largely funded by billionaire founder Benedict Peters, who contributed roughly $1 billion of his private funds to shut the acquisition and restart manufacturing.
Justice S.B. Belgore gave the ruling on Tuesday, July 8, 2025, whereas delivering judgment in an utility filed by Tempo Energy Nigeria Ltd., a minority fairness contributor to the OML 29 deal.
According to courtroom paperwork, the claims originated from a multi-party financing association courting again to 2014. Tempo Energy alleged that a number of of the defendants breached their obligations underneath the governing facility agreements and, with out together with Tempo, initiated proceedings within the High Court of England and Wales and commenced arbitration earlier than the ICC on December 11, 2020.
To shield its curiosity, Tempo filed a swimsuit on January 14, 2021, looking for injunctive reduction to restrain the defendants from taking any additional steps within the UK proceedings and the ICC arbitration.
In a associated utility, filed by Tempo via its counsel, Kehinde Ogunwumiju, SAN, the FCT High Court granted interim injunctions on January 22, 2021, restraining the defendants from continuing with the arbitration and the English courtroom case pending the dedication of the movement on discover. The courtroom additionally consolidated pending purposes and adjourned the matter.
The swimsuit, marked FCT/HC/CV/079/2021, listed Aiteo Eastern E&P Company Ltd, African Finance Corporation, Ecobank Nigeria Ltd, First Bank of Nigeria, Guaranty Trust Bank, Fidelity Bank, Shell Western Supply & Trading, Shell International Trading & Shipping, Citibank Europe (UK Branch), Citibank N.A. (London Branch), FBN Trustees, Zenith Trustees, FBN Merchant Bank, Sterling Bank, Union Bank, Zenith Bank, and Dame Elizabeth Gloster as defendants.
Dissatisfied with the High Court’s ruling, the defendants filed an enchantment on the Court of Appeal, Abuja Division. However, regardless of the subsisting interim injunctions issued by the High Court, the defendants continued with the ICC arbitration proceedings in London from 2021 to 2024.
In a unanimous judgment delivered on April 25, 2025, the Court of Appeal affirmed the validity and subsistence of the January 2021 injunctions. The appellate courtroom dismissed the enchantment as an abuse of courtroom course of, awarded N1.5 million in prices in opposition to the defendants, and ordered an accelerated listening to of the pending purposes on the High Court. It additionally warned that any actions taken in defiance of legitimate courtroom orders could also be declared void.
Following the appellate courtroom’s judgment, on the resumed listening to earlier than the High Court on May 20–22, 2025, Tempo Energy utilized for a restorative order to nullify the ICC arbitration. Ogunwumiju, SAN, argued that the arbitral proceedings had been performed in flagrant violation of the courtroom’s orders.
Counsel to Ecobank Nigeria and different defendants, together with Mrs. Joke Aliyu and Mr. Babatunde Fagbohunlu, SAN, filed a preliminary objection difficult the jurisdiction of the courtroom. They argued that the FCT High Court lacked the competence to restrain overseas arbitral proceedings.
Justice Belgore dismissed the objection, describing it as incompetent and an abuse of courtroom course of. He dominated in favour of Tempo Energy and declared the ICC arbitration proceedings null and void, having been performed in violation of subsisting courtroom orders.
The courtroom reiterated that the interim orders of January 22, 2021, stay legitimate and binding on all events. It directed the defendants to desist from taking any additional steps in defiance of its orders and awarded an extra N500,000 in prices to Tempo Energy. The matter was adjourned to September 29, 2025, for listening to of the consolidated interlocutory purposes.
Aiteo had earlier sued Shell Petroleum Development Company of Nigeria, alleging fraud, deceit, and misrepresentation within the 2014 sale of its 30% stake in OML 29. In swimsuit quantity FHC/ABJ/C8/738/2021, filed earlier than a Federal High Court in Abuja, Aiteo claimed Shell failed to completely disclose the precise situation of the oil wells and requested for $2.5 billion in compensation.
The firm cited the poor situation of the asset and repeated assaults by oil thieves on its infrastructure as causes for its incapability to fulfill its {financial} obligations to collectors.
According to paperwork, the consortium of lenders dedicated roughly $2 billion in financing: Zenith Bank – $323 million, First Bank and GTBank – $200 million every, Fidelity Bank – $175 million, AFC – $125 million, Ecobank Nigeria and Union Bank – $100 million every, Sterling Bank – $60 million, and Shell Western – $512 million.
Peters’ complete fairness contribution included $898,237,697.35 in money and an extra $257 million at closing to cowl charges, ancillary prices, and restart manufacturing. Tempo Energy, amongst different small fairness holders, contributed $136 million.
