*Outcome of this case could determine whether trust arrangements in Nigeria can be relied upon or abused
*A trustee cannot invent security, ignore contracts, take assets it has no right to
A consortium of Foreign financial institutions, Glencore Energy UK Limited, Africa Finance Corporation, Mauritius Commercial Bank, has sued First Bank Nigeria Trustees Limited.
The action is filed against both FBN Trustees and their appointed receiver, Abubakar Sulu-Gambari SAN, over what the Foreign Lenders allege is an unlawful attempt to seize control of Neconde Energy Limited’s interests in Oil Mining Lease 42 (OML 42).
The Foreign Lenders extended credit facilities to Neconde, with FBN Trustees appointed as security trustee under the agreed terms.
The International Financiers whose court processes accuse FBN Trustee of an alleged Illegal Grab of Asset and breach of Trust hauled FBN Trustees Limited and its receiver Abubakar Sulu Gambari SAN before the courts, accusing them of a deliberate attempt to unlawfully seize Neconde Energy Limited’s stake in Oil Mining Lease 42 (OML 42).
The Foreign lenders allege that FBN Trustees abandoned its role as a neutral trustee, ignored binding loan terms, and allegedly acted to benefit the consortium of Nigerian banks that have no debt claim against Neconde Energy.
“Trustee Turned Enforcer”
According to court filings, FBN Trustees was appointed to protect the interests of the Senior Foreign Lenders—international financial institutions and an oil trading company. They allege, that instead, FBN trustee crossed the line, secretly creating a second, illegal security over Neconde ‘s OML 42 interest without the required consent.
That consent, the foreign lenders state, was clearly refused.
Despite this, FBN Trustees allegedly went ahead and executed a deed of charge, a move the foreign lenders describe as unauthorised, unlawful, and a clear breach of trust.
No Debt, No Right, No Authority
The lawsuit stresses that Neconde Energy owes nothing to the Nigerian banks who are now claiming rights over OML 42. The foreign lenders say that this makes the security baseless from the start, and any enforcement action flowing from it legally void.
They also challenge the appointment of a receiver, arguing it rests on an invalid and manufactured claim.
High Stakes, Wider Fallout
Legal experts warn that the case raises serious questions about governance and ethics in Nigeria’s banking and oil sectors. Allegations that a trustee (FBN Trustees) linked to a major bank (First Bank Nigeria Plc) attempted to force control of oil assets are likely to unsettle foreign investors.
What the Foreign Lenders Want
The Foreign Lenders are asking the court to cancel the disputed security, remove FBN Trustees and the receiver Abubakar Sulu Gambari SAN and award damages for losses suffered.
Why It Matters
OML 42 is a strategic oil asset. The outcome of this case could determine whether trust arrangements in Nigeria can be relied upon—or abused.
For now, the Foreign lenders’ message is blunt
a trustee cannot invent security, ignore contracts, and take assets it has no right to.
