Court Warns Bank Executives of Imprisonment Over $1bn Debt Case

The Federal High Court in Abuja has issued serious warnings to the managing directors of three major banks—First Bank of Nigeria Limited, Access Bank Plc, and Zenith Bank Plc—indicating that they could face imprisonment for not adhering to a court order. This warning arises from a dispute involving a significant debt, reportedly $1 billion, linked to onshore oil assets and the Floating Storage and Offloading unit, the FSO Ugo Ocha.

The court’s warnings were communicated through a series of Form 48 Notices of Consequences of Disobedience to Court Order, issued in connection with an interim directive from November 6, 2025, under Suit No. FHC/ABJ/CS/2369/2025. The case involves Neconde Energy Limited and White Dove Shipping Company Limited, among others, against the three banks and five additional defendants.

According to the notices served to the banks, the court emphasized the requirement to maintain the status quo regarding the disputed matter. This directive is crucial, as the Federal Government holds a 55% stake in the OML 42 Joint Venture, which is at the center of the litigation. The notices, delivered between November 7 and 13, 2025, reinforce the court’s stance that any further disobedience might result in contempt of court.

Legal Ramifications and Court Directives

The Form 48 notices outlined that unless the banks comply with the court’s directive to uphold the status quo, they could be found guilty of contempt and potentially imprisoned. The warnings included a reiteration of the original order, which specified that all parties must refrain from any actions regarding the subject matter until the hearing of the Motion on Notice for Interlocutory Injunction, scheduled for December 4, 2025.

The court’s original order denied an ex-parte application for an interim injunction, stating, “The ex-parte application for Interim Injunction is hereby refused.” Additionally, it directed that all involved parties must not engage with the litigation’s subject matter before the upcoming hearing.

The issuance of Form 48 is a critical initial step in contempt proceedings, signaling the court’s seriousness in enforcing its orders. Legal experts observe that any actions taken by the banks contrary to the court’s instructions before the set hearing date will attract significant legal consequences.

Impact on Financial Institutions

This case highlights the potential repercussions for financial institutions involved in legal disputes, particularly those connected to substantial amounts like the $1 billion debt in question. The implications of the court’s warnings extend beyond the immediate parties involved, influencing how banks navigate legal challenges moving forward.

The court has made it clear that compliance with its directives is non-negotiable. With the hearing approaching, the banks face increasing pressure to adhere strictly to the court’s orders to avoid severe repercussions, including possible imprisonment for their managing directors.

As this case unfolds, it underscores the complexities of legal compliance in high-stakes financial matters and serves as a cautionary tale for institutions operating within the oil and energy sectors.