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Lenders Face Possible $1.8bn Damages over Nestoil, Neconde Matter

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Court restrains NASS from fixing members salaries,orders RMAFC to determine lawmakers remuneration

FirstBank and its lending allies are now at the risk of escalating financial penalties because of the collapse of their attempt to reassign the ongoing Nestoil and Neconde matter.

The compounded legal and financial risks from the matter could rise to a whopping $1.8 billion damages claim against the consortium of lenders.

The setback comes on the heels of a Supreme Court judgment that dealt a significant blow to the lenders’ litigation strategy.

In its decision in Neconde Energy Ltd. v. FBNQuest Merchant Bank Ltd & Ors., the apex court rejected efforts that sought to halt proceedings and questioned the motives behind attempts to delay a case originally initiated by the lenders themselves.

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Relying on that judgment, the Honourable Chief Judge reportedly dismissed the application for reassignment, finding no basis to remove the trial judge. The decision has effectively shut the door on what critics described as an attempt to derail the proceedings.

With that strategy defeated, attention is now shifting to the potentially enormous consequences facing the banks.

Nestoil and Neconde are commencing the process of pursuing approximately $1.8 billion in damages against FBNQuest Merchant Bank, First Trustees, FirstBank, UBA, Access Bank, Zenith Bank, the Receiver-Manager and other parties over alleged disruption of oil production operations.

The companies are expected to contend that actions taken by the lenders and their Receiver severely impaired production activities, causing output to fall from about 60,000 barrels per day to below 40,000 barrels per day, while also disrupting critical drilling and field development programmes.

Industry observers note that if successfully pursued, the claim could rank among the most significant damages actions arising from a commercial banking dispute in Nigeria’s oil and gas sector.

Adding to the mounting legal pressure, Drawcok Estate Limited has already filed a N100 billion damages suit against FBNQuest Merchant Bank, First Trustees, the Receiver-Manager and others over the alleged wrongful takeover and occupation of its Victoria Island properties.

The growing wave of litigation marks a dramatic reversal in fortunes for the lenders. What began as an aggressive debt recovery exercise is increasingly exposing the banks themselves to substantial legal liability, with claims now running into billions of dollars and tens of billions of naira.

As the Supreme Court’s criticism continues to reverberate through the proceedings, the failed reassignment bid may ultimately be remembered as the moment the dispute shifted from an enforcement action against Nestoil to a potentially costly reckoning for the banks behind it.

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EITI Appraises Nigeria’s Oil, Gas Industry Reforms

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The Global Extractive Industries Transparency Initiative (EITI) team is in Nigeria to assess the impact, transparency and accountability in the oil, gas and mining sectors.

The validation mission, effective Monday, is part of the 2026 EITI’s Validation Exercise that commenced on July 1.

The exercise is particularly significant for Nigeria, as it provides an opportunity for the country to demonstrate how far it has implemented the corrective actions identified during its previous assessment and strengthened the governance of its natural resources.

The Nigeria EITI, in a statement issued on Sunday under the signature of its Director of Communications and Stakeholders Management, Obia­geli Onuorah, said the arrival of the global assessors marked a major stage in the ongoing validation process.

ALSO READ: Dissolve Contentious HCDT Immediately – RMAFC to NUPRC

The mission is expected to run from August 10 to August 14, during which the assessors will conduct a comprehensive quality assurance assessment and consult a wide range of stakeholders involved in Nigeria’s extractive industries.

The statement read, “The Nigeria Extractive Industries Transparency Initiative announces the arrival of the Global Extractive Industries Transparency Initiative Validation Assessors as part of the ongoing 2026 EITI Validation Exercise which commenced on July 1st 2026. The presence of the EITI Mission in Nigeria marks a significant stage in Nigeria’s 2026 EITI Validation and forms part of the global EITI Validation process.

“During the mission, which commences August 10th 2026, the Validation Assessors will undertake a comprehensive quality assurance assessment and hold consultations with key stakeholders”

The stakeholders include government institutions, the National Assembly, oil, gas and mining companies, civil society organisations, development partners, anti-corruption agencies, host communities and the media.

The assessors will also meet senior government officials and key institutions involved in the management and oversight of Nigeria’s extractive resources.

Among those expected to meet the mission are the Secretary to the Government of the Federation and Chairman of the NEITI Board, Senator George Akume; members of the NEITI National Stakeholders Working Group; the Ministers of Finance and Budget and Economic Planning; the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited; NEITI’s Inter-Ministerial Task Team; members of the Senate Committee on Public Accounts and other relevant committees of the National Assembly, as well as the Ministry of Industry, Trade and Investment.

The consultations are expected to give the assessors an opportunity to hear directly from stakeholders about the country’s implementation of the EITI Standard, ongoing reforms and outstanding challenges in the extractive sector.

Commenting, the Executive Secretary of NEITI, Musa Adar, described the exercise as an important opportunity for Nigeria to demonstrate its commitment to responsible management of its oil, gas and mining resources.

“Nigeria remains firmly committed to the principles of the Extractive Industries Transparency Initiative. We regard the Validation process as an opportunity not only to assess the progress we have made, but also to highlight areas where further reforms can enhance extractive sector governance,” Sarkin Adar said.

The NEITI boss said the agency had worked with the National Stakeholders Working Group and other stakeholders to prepare for the assessment.

According to him, the preparations included the submission of Nigeria’s validation documentation and targeted engagements with stakeholders in line with the requirements of the 2023 EITI Standard.

He expressed confidence that the mission would strengthen Nigeria’s relationship with the global EITI and reinforce its commitment to transparency, accountability and prudent management of its natural resources.

Validation is the EITI’s independent quality assurance mechanism for determining how well implementing countries comply with the EITI Standard.

The process examines the extent to which countries have improved transparency and accountability in the management of extractive resources while also identifying areas requiring further reforms.

For Nigeria, the latest exercise comes against the backdrop of its previous validation, which produced a moderate score but also identified areas requiring corrective action.

Nigeria underwent its fourth EITI validation in January 2023 under the 2019 EITI Standard and obtained an overall score of 72 points.

The assessment identified a number of corrective actions that Nigeria was expected to address before its next validation.

The 2026 exercise will therefore provide an independent assessment of whether the country has made measurable progress since the last validation and whether reforms have been institutionalised across the extractive sector.

The assessment covers issues central to the management of Nigeria’s vast oil, gas and mining resources, including transparency, public oversight and accountability.

The latest validation is also taking place as Nigeria seeks to deepen reforms in its extractive industries and attract more investment into the upstream oil and gas and mining sectors.

The country has long faced concerns over revenue leakages, opaque ownership structures, crude oil theft, weak public oversight and limited transparency around the management of natural resources.

The EITI process is designed to help address some of these challenges by promoting disclosure and encouraging collaboration among government, extractive companies and civil society.

Nigeria joined the EITI as an implementing country in 2004 and subsequently enacted the NEITI Act in 2007, establishing a statutory framework for promoting transparency in the management of the country’s extractive industries.

Since then, NEITI has conducted industry audits, published reports and made recommendations aimed at improving revenue collection, reducing leakages and strengthening accountability in the oil, gas and mining sectors.

The 2026 validation therefore comes at a critical point for the country as it seeks to demonstrate that previous recommendations have translated into concrete institutional reforms rather than remaining largely on paper.

NEITI said the exercise would also allow stakeholders to present their perspectives on the reforms and challenges affecting the extractive sector.

“The 2026 EITI Validation is an opportunity to demonstrate the progress Nigeria has made in strengthening extractive sector governance, addressing previous corrective actions and institutionalising reforms that promote transparency and accountability,” the agency stated.

The outcome of the exercise will provide an external assessment of Nigeria’s implementation of the EITI Standard and could influence the direction of further reforms in the sector.

The validation mission is expected to conclude on August 14.

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Dissolve Contentious HCDT Immediately – RMAFC to NUPRC

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Following concerns about the constitution and representation of Host Community Development Trust (HCDT), the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has ordered the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to dissolve the affected HCDT within 48 hours.

The directive was contained in a statement issued by the commission on Friday and signed by the Head of Information and Public Relations Unit, Maryam Umar-Yusuf.

The directive was ignited by an investigative hearing into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO) and the implementation of the HCDT provisions under the Petroleum Industry Act (PIA) 2021.

According to the statement, the ultimatum was issued during the hearing of the commission’s Investment Monitoring Committee (IMC) after concerns were raised over the establishment of the trust for affected host communities.

The Chairman of the RMAFC, Mohammed Shehu, reaffirmed the commission’s commitment to protecting the interests of oil-producing host communities, saying it would continue to strengthen oversight of operators and institutions responsible for ensuring that communities receive the benefits due to them under the law.

READ ALSO: Domestic Refineries’ Crude Supply Shortages Compel NMDPRA, NUPRC Negotiation

Shehu, who spoke at the investigative hearing held at the commission’s headquarters on Thursday, described the exercise as “an important national service and a critical national responsibility.”

He commended the committee for its diligence and urged members to remain resolute, stressing that the commission’s constitutional mandate required “firm oversight, transparency and accountability in the management of national revenue assets.”

According to the statement, he expressed confidence that the investigation would strengthen trust in the petroleum sector and ensure that host communities received the full benefits guaranteed under the PIA.

Leading the hearing, the Chairman of the IMC and Federal Commissioner representing Anambra State, Ekene Enefe, conducted an extensive investigation into SEEPCO’s compliance with the statutory provisions governing Host Community Development Trusts.

He maintained that host communities should no longer bear the environmental and social consequences of oil exploration without corresponding development, adding that the commission would ensure operators and regulatory institutions discharged their statutory obligations.

The committee also criticised SEEPCO for repeatedly failing to honour invitations to appear before it despite previous engagements.

Addressing officials of the NUPRC during the hearing, Enefe said the commission would hold every institution in the petroleum value chain accountable for the effective discharge of its responsibilities.

He consequently ordered the regulator to address concerns surrounding the trust established for the affected communities, declaring, “We are going to give you 48 hours to dissolve that Host Community Development Trust.”

The committee chairman also faulted SEEPCO over what he described as its failure to meet obligations owed to host communities. “We are going to write them, and we are going to give them an ultimatum to pay up what is owed to the host communities,” Enefe said.

He added that the committee would conclude its investigation and submit its findings to the appropriate authorities, insisting that the commission would carry out its constitutional oversight responsibilities “without fear or favour.”

Earlier, the NUPRC delegation, led by the Director of Host Communities, Ufondu Ejiro, defended the implementation of the HCDT established under the PIA.

According to the statement, Ejiro told the committee that the trust had been duly incorporated, funded and structured in accordance with the law.

She said the commission had processed documents relating to community consultations, governance structures, funding arrangements and Community Development Plans, while also presenting records of statutory contributions made into the trust.

The NUPRC maintained that it discharged its responsibilities within the framework of the Petroleum Industry Act and the Host Community Development Regulations.

However, counsel representing the affected host communities, Peter Chukwudi, rejected the regulator’s submissions, insisting that several persons recognised as community representatives were not accepted by the communities.

He also argued that adequate consultations were not conducted before the HCDT was constituted and questioned the level of development recorded in the affected communities despite years of oil production.

Chukwudi urged the committee to ensure that the grievances raised by the communities were thoroughly investigated.

Also speaking, the Anambra State Commissioner for Petroleum and Mineral Resources, Prof Charles Ofoegbu, called for stronger collaboration between the NUPRC and the state government in verifying community representation and monitoring compliance with statutory obligations.

He advocated greater transparency in calculating statutory contributions, operational expenditure and the execution of community development projects, stressing that the state government had a responsibility to protect the interests of its oil-producing communities.

Other members of the commission also raised concerns during the hearing. The Federal Commissioner representing Rivers State, Desmond Akawor, said there appeared to be a disconnect between the regulator and affected state governments, adding that closer collaboration and direct engagement with operators were necessary for effective oversight.

He also criticised SEEPCO for failing to attend the hearing and urged all parties to cooperate with the investigation.

The Federal Commissioner representing Kogi State, Abdulazeez Idris-King, questioned the effectiveness of the NUPRC’s verification process, saying reliance solely on documents submitted by operators might not sufficiently establish that genuine consultations had taken place with host communities.

Similarly, the Federal Commissioner representing Jigawa State, Hauwa Umar-Aliyu, stressed the need for regulators to uphold professionalism and impartiality, saying public confidence would only be strengthened if the interests of host communities received equal attention alongside those of operators.

According to the statement, the hearing forms part of the commission’s ongoing oversight initiative aimed at promoting transparency, strengthening accountability and ensuring that host communities derive the benefits guaranteed under the PIA.

Recall that the HCDT was created under the PIA 2021 as a framework for ensuring that communities where oil and gas operations take place receive direct and sustainable benefits from petroleum activities.

The PIA requires petroleum operators, known as settlors, to establish trusts for their host communities and contribute 3 per cent of their actual annual operating expenditure in the preceding year to the funds. The trusts are intended to finance community development projects and promote peaceful relations between operators and host communities.

The NUPRC is responsible for regulating the trusts, including their incorporation, funding, governance and the implementation of development projects. The provision was introduced against the background of decades of grievances in oil-producing communities over environmental impacts, inadequate development and disputes with petroleum companies.

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Abuja One-Chance Scare: How Criminals Turn Taxis Into Death Traps

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Fear has continued to grip residents of the Federal Capital Territory as criminals allegedly masquerading as commercial transport operators turn taxis into traps for unsuspecting commuters.

The growing “one-chance” menace involves criminal gangs using vehicles that appear to be legitimate taxis to pick up passengers before allegedly diverting them to isolated locations, where they are robbed, assaulted or abducted.

In some cases, victims have reportedly been killed after being forced to surrender their valuables and money.

SEE ALSO: NNPC Ltd Considers Commissioning, as AKK Gas Pipeline Lands Abuja

The situation has heightened concerns over passenger safety, particularly during rush hours and at night when commuters often struggle to find affordable transportation.

Fake taxis, real terror

The criminals reportedly operate by blending into busy passenger-loading points, making it difficult for commuters to distinguish them from genuine commercial drivers.

Once the vehicle becomes sufficiently occupied, the occupants allegedly reveal their identities, threaten passengers and demand their valuables.

Some survivors have recounted being forced to transfer money from their bank accounts, surrender ATM cards and disclose their PINs.
One survivor, Umar, said he boarded a vehicle in 2025 believing it was a normal commercial taxi.

He became suspicious after noticing the behaviour of the driver and other occupants and requested to alight.

According to him, the occupants became aggressive, attacked him and eventually pulled out a gun.

Umar said the gang forced him to transfer N500,000 from his account before taking his ATM card and withdrawing additional money through a POS device.

He said the criminals later pushed him out of the moving vehicle.

“People should be extremely careful, even in places that look like regular loading points. Just because many people gather there does not mean it is safe,” he warned.

Women among victims

Women have also been among those targeted by the criminal gangs.

In February 2026, a woman identified as Precious reportedly boarded a green taxi in Gwarimpa after negotiating a fare.

She became suspicious when the occupants began winding up the vehicle’s windows. When she resisted, one of the men reportedly slapped her.

The driver allegedly told her, “You think say we be normal human beings?”

The gang subsequently demanded her phone and bag and attempted to gain access to her financial accounts.

Another woman, Iniobong Festus, said she narrowly escaped after boarding a vehicle at Dawaki Underbridge while travelling to church in Asokoro.

She said the occupants blindfolded her and demanded her belongings. After discovering that she had neither money nor a mobile phone, they reportedly abandoned her around Mpape.

Some victims never returned

While some commuters have survived their ordeals, others have reportedly lost their lives.

One of the cases that generated outrage was the killing of Chinemerem Chukwumeziem, a nurse with the Federal Medical Centre, Jabi.

Chukwumeziem was reportedly lured into a “one-chance” vehicle on January 3, 2026, after closing from work.

Her body was recovered by the roadside the following day.

Another victim, Princess Mediatrix Chigbo, was also reportedly abducted while in transit and later found dead around the Dawaki axis of the Kubwa Expressway.

The killings triggered condemnation from professional organisations, including the National Association of Nigerian Nurses and Midwives and the Nigerian Bar Association.
The former NBA president, Mazi Afam Osigwe, SAN, said the incidents had plunged Abuja into grief and fear.

“These were not faceless victims. They were professionals, contributors to society, and ordinary citizens whose only intention was to return safely from their daily engagements,” the NBA said.

The association condemned the growing pattern of criminals masquerading as commercial transport operators.

Freda’s death raises fresh concerns

The case of Freda Arnong also remains one of the incidents associated with Abuja’s one-chance menace.

Arnong was reportedly killed on July 2, 2025, after leaving a house fellowship near the CBN Institute in Maitama and boarding a commuter vehicle while returning home.

Her death further heightened concerns about the safety of passengers using roadside taxis in the nation’s capital.

The menace has also been reported in satellite towns including Zuba and along the Gwagwalada-Lokoja highway.

Transport gap worsens situation

Beyond criminal activity, concerns have been raised about Abuja’s transportation system, with residents arguing that inadequate and unreliable public transportation leaves commuters vulnerable to unregulated operators.

For years, residents of the FCT have complained about the absence of a sufficiently reliable, affordable and comprehensive public transportation network connecting the city centre with satellite towns.

The shortage becomes more pronounced during peak periods, when commuters compete for the limited number of available vehicles.

This has created an environment where desperate passengers may board vehicles without adequately verifying the identity of the driver or the legitimacy of the taxi.

Wike’s transportation overhaul

The FCT Minister, Nyesom Wike, has been pursuing reforms aimed at restructuring transportation within the capital.

The initiative includes enforcing the Abuja Master Plan and developing regulated transport terminals in the city and satellite towns.

Structured bus hubs are being developed in locations including Bwari and Gwagwalada, with the broader objective of improving commuter safety and reducing the activities of criminal operators.

Police vow to dismantle gangs

Following public concerns over the growing menace, FCT Commissioner of Police, CP Ahmed Mohammed Sanusi, declared a zero-tolerance stance against crime in the territory.

Sanusi vowed to dismantle one-chance criminal syndicates operating across Abuja.

“FCT will no longer serve as a refuge for criminal elements including one-chance robbers. Decisive measures will be taken to restore safety and public confidence,” he said.

He also warned that indiscipline and unprofessional conduct within the police command would not be tolerated.

For many Abuja residents, however, the concern remains immediate: getting into a taxi should mean getting home safely—not entering a potential death trap.

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