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”We didn’t Divert N1.2bn subsidy fund, EFCC never shut our our tank farm” – Obat Oil&Petroleum speaks

Published

10 years ago

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obatobat oil

 
Just yesterday, there were reports going round that Obat Oil and Petroleum limited owned by a Monarch,Oba Frederick Akinrutan, was shut down by EFCC over diversion of  N1.2bn subsidy funds sometime ago.
Obat Oil has however released a statement through it’s Head, Legal Seun Bakare, stating the company’s side of the story.

‘’Our attention has been drawn to a series of viral newspaper publications on an alleged N1.2b subsidy diversion claimed by the Managing Director of Petrocam Trading Nig. Ltd, Mr. Patrick Ilo against us, Obat Oil & Petroleum Ltd.
We hereby state categorically that there was no time Obat Oil diverted any N1.2b as claimed by Petrocam and It is pertinent to state clearly at this point that there was never a time that our tank farm was shut down as we are fully in operation; we were only invited by the EFCC based on the petition Mr. Patrick Ilo wrote to the commission through his Solicitors. The transactions which gave rise to the false reports and the spurious claims from which they have sprung have already been submitted to the Court’s consideration and ordinarily should not be the subject of discourse or advertorials.

However, Petrocam Trading has gone out of its way to lodge false complaints against us and set in motion a sequence of events that have been widely reported. We are therefore constrained to protect our professional goodwill, integrity and reputation by putting out this publication. Sometime in 2014, PetrocamTrading approached Obat Oil & Petroleum Ltd for a business transaction with Petrocam making an offer to finance the Importation of PMS through its bank, Sterling Bank, for Obat Oil. Both parties signed a service agreement to commence the transaction and Petrocam did undertake the Importation of 15,000Metric Tons of PMS in lots either by its own resources or through its Bank. During the course of the business transaction and at conclusion, Petrocam failed to fulfill its obligations under the service agreement.For instance, Petrocampaid N3 per litre of the allocation as opposed to the agreed sum of N5 per litre. This was the first act of breach displayed by Petrocam Trading. Despite our best efforts at attempting to get the issue of the outstanding payment resolved while and the same time hoping that business could still be done with Petrocam, the business relationship broke down. We invited Mr. Patrick Ilo for reconciliation on several occasions to enable parties reconcile their accounts based on the transactions and resolve issues but he declined. Rather than agree to our invitation for joint account reconciliation, Mr. Patrick and Petrocam Trading curiously obtained and published our UBA statement of account without our consent, permission or authorization. It became obvious that Petrocam was shying away from facts because he had skeletons in his cupboard. While Petrocam thrived in its default of the Service Agreement by failing to make full payment for the petroleum products it loaded, it instituted an action on the 19thof November, 2015 before the Lagos State High Court in suit No. LD /1411CMW/2015 seeking sundry reliefs including injunctions. In that suit, Petrocam lay claims to the Subsidy, Forex differentials and accrued interest being expected from the Federal Government as payments for seventeen (17) transactions/importations belonging to Obat Oil, of which Petrocam participated only in six (6).Needless to say, Petrocam’s attempt to appropriate to itself payments, accrued interest and forex differentials meant for several other bank transactions/importationsis completely illogical, factually incredulous and legally unfounded.We take the view that Petrocam is not entitled to any sum at all. The money paid to AMCON belongs to Obat and not Petrocam and is entirely unconnected to the Service Agreement executed by Obat and Petrocam. Thus, until the Court determines who owns what, Petrocam cannot claim any sums standing to our credit or compulsorily take over assets belonging to us. Further exposing the falsity of Petrocam’s public claims as reported in the publications is the fact that in its processes filed before the Court, Petrocam concedes that it has completely received the alleged N1.2b subsidy claim in question.

eThe report in the papers as well as the false reports on which they are based not only amount to speaking from both sides of the mouth but also underscore a possible intention by Petrocam to obtain from us what is not due to it. Surprisingly, while Obat Oil were to compare books with Petrocam for reconciliation and to determine the position of the account on the transaction, Mr. Patrick Ilo maliciously wrote a petition to EFCC and DSS claiming that his money was diverted by Obat, without stating the true facts as narrated herein before the agencies. This move was not only surprising, it was unlawful as the position of the law, as we have been made aware, is that the EFCC (and indeed, law enforcement agencies in general) are prohibited from acting as agents of debt collection with respect to transactions of a purely civil nature, such as the Service Agreement business transaction between two firms for a matter that is still a subject of litigation. We therefore denounce the invasion of our premises by agents of the state acting on lopsided reports presented by a party that has some interest to serve. We state categorically that Obat Oil did not divert N1.2b or any sums whatsoever accruable to Petrocam or Sterling Bank. We restate our invitation to Petrocam for amicable discussions to determine what is accruable to both parties. We reject and will not capitulate to any attempts by Petrocam to harass Obat Oil with the press or government agencies as we are fully aware of the remedies available to us under the law- and will fully explore them. In conclusion, we take exception to any malicious publication and slander orchestrated by certain people in a bid to disrupt our business. For the avoidance of doubt, EFCC did not close our depot facility. We were only invited because of the petition and lies being spread by Mr Patrick Ilo and Petrocam. We urge the public to disregard the misinformation peddled in the false and malicious publications as well as desist from propagating same, in their best interests’’

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Business

Landmark Judgment: Federal High Court Dismisses ₦50bn Oil Spill Claim Against ExxonMobil

Published

16 hours ago

on

May 13, 2026

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Landmark Judgment: Federal High Court Dismisses ₦50bn Oil Spill Claim Against ExxonMobil

 

The Federal High Court sitting in Uyo has dismissed a ₦50 billion lawsuit filed against ExxonMobil, sued as Mobil Producing Nigeria Unlimited, now Seplat Energy Producing, in a ruling analysts say could significantly reshape oil spill litigation and compensation claims in Nigeria’s petroleum sector.

Delivering judgment on April 29, 2026, Justice Onyetenu held that the suit instituted by the Ejige Ore Njenyisi Muma & Fishing Co-operative Society Ltd was incompetent and liable to dismissal for lack of jurisdiction.

The plaintiffs had sought ₦50 billion in damages over an alleged hydrocarbon spill said to have occurred on September 12, 2021.

However, counsel to the defendant, Chinonso Ekuma of KENNA LP, successfully argued that the claimants failed to disclose any legally recognisable violation attributable to the oil firm.

In its findings, the court held that the plaintiffs failed to establish any actionable wrongdoing against the defendant.

A key element in the court’s decision was the Joint Investigation Visit (JIV) Report tendered by the plaintiffs themselves, which showed that the alleged spill incident was confined within ExxonMobil’s operational facility and did not impact the members of the cooperative society or their sources of livelihood.

The court further ruled that claims arising from such incidents must be pursued strictly under the statutory compensation framework provided in Section 11(5) of the Oil Pipelines Act, rather than through common-law claims founded on negligence or nuisance.

Justice Onyetenu held that the plaintiffs’ attempt to circumvent the statutory regime by framing the suit as a tort action rendered the matter incompetent before the court, thereby depriving it of jurisdiction.

Legal analysts say the judgment reinforces the supremacy of the Oil Pipelines Act in determining compensation procedures relating to oil pipeline incidents and environmental claims in Nigeria.

The ruling is also seen as strengthening the evidential weight of Joint Investigation Visit Reports, particularly in cases where such reports indicate no direct impact on claimants or host communities.

Industry observers believe the judgment will have far-reaching implications for future oil spill litigation, especially regarding the procedural requirements for compensation claims against oil operators.

The court’s decision further provides clarity for operators within Nigeria’s energy sector by reaffirming that compliance with Section 11(5) of the Oil Pipelines Act is mandatory and cannot be sidestepped through alternative legal formulations.

While K.O. Uzuokwu appeared for the plaintiffs, the defence was led by Chinonso Ekuma of KENNA LP on behalf of ExxonMobil.

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Bank

Union Bank Honoured by ASBON at Nigeria National SME Business Awards

Published

22 hours ago

on

May 13, 2026

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Union Bank Honoured by ASBON at Nigeria National SME Business Awards

 

 

Lagos, Nigeria – Union Bank of Nigeria has reaffirmed its reputation as a strong supporter of Nigerian businesses, receiving the Best SME Growth Banking Initiatives Award for 2025 from the Association of Small Business Owners of Nigeria (ASBON) at the Nigeria National SME Business Awards, held recently in Lagos.

The award was presented to the Bank in recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises, through a differentiated suite of solutions designed to enable business expansion and long-term value creation.

Receiving the award on behalf of the Bank, Ayokunnumi Abraham, Head of SME Segment at Union Bank, described the recognition as a strong endorsement of the Bank’s commitment to supporting small and medium-sized businesses. He said:

“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible. Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting. These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive.”

Organised by ASBON in partnership with the Lagos State Government through the Ministry of Commerce, Cooperatives, Trade and Investment, the event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.

Union Bank remains focused on deepening its support for SMEs through customer-led solutions and processes that strengthen business growth across the ecosystem.

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Bank

Atlantian Crown Bank Rebrands as Arizona Global Bank LLC, Begins Licensing for Global Expansion 

Published

1 day ago

on

May 12, 2026

By

*Atlantian Crown Bank Rebrands as Arizona Global Bank LLC, Begins Licensing for Global Expansion* 

_By AGP News 

 

*UNITED KINGDOM OF ATLANTIS* — In a move signaling a push into international markets, the Royal Throne of the United Kingdom of Atlantis on Sunday announced the corporate transformation of Atlantian Crown Bank LLC into *Arizona Global Bank LLC*, as part of a wider restructuring to position the institution for global banking and financial innovation.

 

The announcement was made at a press conference in the UKA capital by *HRM Queen Amb. Cletus C. Leaticia*, Chief Executive Officer of the newly named bank. She told reporters the rebranding marks _“more than a name change”_ and reflects a strategic pivot toward digital finance, cross-border investment, and modern banking standards.

 

_“This transformation represents our commitment to innovation-driven banking and our vision to become a globally competitive financial institution,”_ Queen Leaticia said.

 

*Licensing Process Underway*

According to the Department of Financial Administration and Corporate Affairs, which issued the official communication, Arizona Global Bank LLC has formally begun the process of applying for a *Banking Operational Licence* under UKA’s financial regulatory framework.

 

Once licensed, the bank plans to operate as a modern financial enterprise focused on four pillars:

1. Innovation-driven banking and digital financial solutions

2. Corporate financing and structured investment services

3. International financial partnerships and cross-border trade facilitation

4. Financial inclusion initiatives

 

Bank officials stressed that the institution will _“maintain strict compliance with all banking regulations and supervisory standards”_ set by UKA financial authorities.

 

*Strategic Shift Amid Global Ambitions*

Management described the rebranding as part of a broader restructuring initiative to _“strengthen the bank’s international identity, expand its global financial footprint, and align operations with contemporary banking standards.”_

 

Representatives called the licensing and rebranding process a _“major milestone”_ aimed at supporting economic growth, international trade, and cross-border investment initiatives.

 

*No Disruption to Existing Commitments*

Addressing potential concerns from clients and partners, management reassured stakeholders that _“all existing institutional commitments, operational objectives, and long-term strategic plans remain fully intact throughout the transition process.”_

 

The Royal Throne indicated that further updates on the licence approval, commencement of operations, corporate partnerships, and investment programmes will be released through official UKA and Arizona Global Bank LLC channels.

 

_The Department of Financial Administration and Corporate Affairs, Royal Throne of United Kingdom of Atlantis, issued the official statement._

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