Glencore, AFC, Mauritius Bank, Fidelity Sue First Bank Trustees, Receiver Over ‘Illegal Takeover’ Of Neconde’s OML 42

Glencore, AFC, Mauritius Bank and Fidelity Bank Sue First Bank Trustees over Alleged Illegal Takeover of Neconde’s OML 42
A group of international lenders including Glencore Energy UK Limited, Africa Finance Corporation (AFC), Mauritius Commercial Bank, and Fidelity Bank have instituted legal action against FBN Trustees Limited and a court-appointed receiver, alleging an unlawful attempt to take control of Neconde Energy Limited’s interest in Oil Mining Lease 42 (OML 42).

The lawsuit, filed before a Nigerian court, challenges the appointment of Abubakar Sulu-Gambari, SAN, as receiver/manager over Neconde’s assets, with the plaintiffs arguing that the move violates existing financing agreements and creditor priority arrangements. The lenders contend that FBN Trustees acted outside its mandate by enforcing a subordinate security interest without the consent of senior creditors.
At the centre of the dispute is Neconde Energy’s 45 per cent stake in OML 42, a strategic oil asset located in Nigeria’s Niger Delta. According to court filings, the foreign lenders had previously provided financing to Neconde under agreements that placed them as senior secured creditors, with FBN Trustees appointed as security trustee solely to protect their interests.

The plaintiffs allege that a secondary security interest was created in favour of a separate group of lenders without their prior approval, which they say is a clear breach of the financing terms. They further argue that Neconde does not owe the alleged debt being enforced, rendering the security arrangement invalid and any attempt to take over the oil asset unlawful.

The suit specifically challenges a Deed of Charge executed in December 2022, which the lenders claim was signed without their knowledge or consent. They insist that the document has no legal effect under the governing agreements and cannot be used to justify the appointment of a receiver or the takeover of Neconde’s oil interests.
As part of the reliefs sought, the plaintiffs are asking the court to declare the contested security interest null and void, remove FBN Trustees as security trustee, terminate the appointment of the receiver, and affirm their rights as senior creditors. They are also seeking damages for alleged losses arising from the disputed actions.
The case has drawn significant attention within Nigeria’s banking and energy sectors, given the involvement of major international financial institutions and the strategic importance of OML 42. Analysts say the outcome could have wider implications for creditor rights, syndicated lending structures, and investor confidence in Nigeria’s oil and gas industry.

The matter is now before the court, with stakeholders across the financial, legal, and energy sectors closely watching the proceedings as they unfold.