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Court Nullifies Shell, AFC, Others’ ICC Arbitration Against Aiteo

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The High Court of the Federal Capital Territory, Abuja, has nullified ongoing arbitration proceedings at the International Chamber of Commerce, London, initiated against indigenous oil firm, Aiteo Eastern Exploration and Production Company Limited, by a group of lenders that partially financed its acquisition of Oil Mining Lease 29.

In a ruling delivered on Tuesday, Justice S.B. Belgore held that the ICC arbitration commenced in defiance of existing injunctive orders issued by the Nigerian court constituted a “brazen affront” to the nation’s judicial authority and was therefore void.

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The arbitration proceedings in London, undertaken in clear disregard of binding interim injunctions, amount to a violation of this court’s authority. It is a breach that cannot be condoned,” Belgore said.

The dispute stems from Aiteo’s $3.01 billion acquisition of OML 29 and the Nembe Creek Trunk Line from Shell in 2014. Benedict Peters, Aiteo’s founder, is reported to have contributed nearly $1 billion in equity to facilitate the transaction and revive crude oil production.

Tempo Energy Nigeria Ltd., a minority equity partner in the transaction, claimed it was sidelined in legal and arbitral proceedings despite having a material stake. The company also alleged that the consortium of lenders, including Shell Western Supply & Trading, Shell International Trading & Shipping, the African Finance Corporation, and several Nigerian banks, breached obligations under the financing agreements.

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Tempo filed suit FCT/HC/CV/079/2021 on January 14, 2021, seeking to restrain Aiteo and the lending syndicate from proceeding with the UK High Court action and ICC arbitration without its inclusion.

In response, the FCT High Court granted interim injunctions on January 22, 2021, barring the parties from taking further steps in the foreign proceedings pending the determination of the substantive matter.

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However, the ICC arbitration reportedly continued between 2021 and 2024, in direct contravention of the court’s orders.

On April 25, 2025, the Court of Appeal in Abuja upheld the injunctions, describing the appeal lodged by the defendants as an abuse of court process.

The appellate court imposed costs of N1.5 million and ordered an expedited hearing of the outstanding applications before the FCT High Court.

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At the resumed hearing from May 20 to 22, 2025, Tempo’s lead counsel, Kehinde Ogunwumiju (SAN), urged the court to nullify the ICC arbitration in its entirety.

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The continued prosecution of the arbitration proceedings in London, in spite of subsisting Nigerian court orders, undermines the rule of law and judicial independence. It is not only contemptuous but unlawful,” Ogunwumiju told the court.

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Lawyers representing the defendants, including Mrs. Joke Aliyu and Mr. Babatunde Fagbohunlu (SAN), argued that the Nigerian court lacked jurisdiction to interfere with foreign arbitral proceedings.

They further contended that arbitration was the preferred forum under the terms of the financing agreement.

However, Justice Belgore dismissed the preliminary objection as “incompetent and an abuse of the court process.”

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“This court is not without power to restrain parties from proceeding with foreign arbitration where such steps offend the administration of justice in Nigeria,” the judge ruled.

The court accordingly granted Tempo Energy’s application, declared the ICC arbitration proceedings null and void, and reaffirmed that the interim injunctions issued in 2021 remained valid and binding on all parties.

Belgore directed full compliance with the court’s earlier orders and awarded N500,000 in costs to Tempo Energy.

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The matter was adjourned to September 29, 2025, for hearing of the consolidated interlocutory applications.

The arbitration is part of a broader legal tussle arising from Aiteo’s acquisition of OML 29.

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In a separate case before the Federal High Court in Abuja (Suit No. FHC/ABJ/CS/738/2021), Aiteo is suing Shell for $2.5 billion, alleging fraud and misrepresentation in the sale of the oil block.

“The asset was significantly degraded at the time of sale. Shell failed to disclose the true condition of OML 29, including chronic operational and security challenges that continue to affect production.”

Aiteo claims the poor state of the asset, coupled with rampant crude oil theft, has severely impaired its ability to meet debt repayment obligations.

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According to an internal bank document seen by our correspondent, the lenders committed approximately $2 billion to the transaction: Zenith Bank $323 million; First Bank and GTBank $200 million each; Fidelity Bank $175 million; AFC $125 million; Ecobank Nigeria and Union Bank $100 million each; Sterling Bank $60 million; and Shell Western $512 million.

Benedict Peters’ equity contribution reportedly amounted to $898 million in cash, with an additional $257 million provided at closing to cover transaction costs and restart operations. Tempo Energy, one of the smaller equity partners, contributed $136 million.

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Peter Obi’s Son, Oseloka, Speaks On Gay Allegations

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Oseloka Obi, son of the 2023 Labour Party presidential candidate Peter Obi, has responded to viral allegations linking him to homosexuality after photographs of him with London-based British-Nigerian Kent Okwesa, circulated online this week.

The pictures, which emerged on Wednesday, showed Oseloka and Okwesa sitting closely at a restaurant in the United Kingdom, sparking a wave of online speculation and gossip.

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In a detailed statement, Oseloka dismissed the rumours as malicious falsehoods driven by his father’s involvement in Nigerian politics.

He noted that while he rarely responds to such narratives, the persistence of gossip and unfounded claims made it necessary to address the matter.

READ ALSO:Jonathan, Obi Can’t Match APC’s Strength For 2027 – Mustapha Salihu

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Because of my father’s involvement in Nigerian politics, there has been a persistent curiosity and, at times, malicious obsession with me.

“I have no social media presence and no interest in maintaining one, so I rarely correct these falsehoods. But perhaps it is time I address them,” he wrote.

Oseloka stressed that the photos of him in circulation were being misrepresented, insisting they were ordinary snapshots with friends and colleagues.

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The truth is simple: Peter Obi’s son appears in photos with his friends and colleagues, nothing more. If people wish to invent otherwise, I hope they sleep soundly knowing they are spreading lies,” he added.

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He further emphasised that neither he nor his father is perfect, but attested to his father’s integrity and commitment to Nigeria’s future.

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My father has my vote, not because he is my father, but because he is the right man for the job. If others wish to go low, invent scandals, or attack me to wound him, they are free to do so. But we will go high, and we will continue to focus on the future of Nigeria.”

Concluding, Oseloka urged Nigerians to redirect their attention from idle gossip to the pressing socio-economic challenges facing the country.

Read the full statement below:

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FULL LIST: PenCom Bars Seven Mortgage Banks From Processing Housing Loans

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The National Pension Commission (PenCom) has barred seven Primary Mortgage Banks (PMBs) from processing applications under the pension-backed equity contribution scheme for residential mortgages, citing their non-compliance with housing loan guidelines.

In a letter published on PenCom’s website, addressed to Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), the organisation instructed them to immediately stop accepting or processing equity contribution applications submitted through the affected institutions.

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The blacklisted mortgage banks are:

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• Jigawa Savings & Loans Limited

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• FHA Mortgage Bank Limited

• Delta Trust Mortgage Bank Limited

• AG Mortgage Bank Limited

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• Infinity Trust Mortgage Bank Pic

• First Trust Mortgage Bank Limited

• Mutual Alliance Mortgage Bank Limited

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Following the cited letter, the commission instructs that PFAs, including Closed Pension Fund Administrators and Pension Fund Custodians, immediately stop accepting or processing equity contribution applications submitted by the following Primary Mortgage Banks… Please be guided,” the circular read in part.

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Explaining the decision, PenCom’s spokesman, Ibrahim Buwai, told The PUNCH that the sanction was imposed because the affected institutions failed to generate the mortgages for which funds had been approved.

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The whole purpose of giving access to RSA holders is to enable them to own houses through mortgages,” he said. “It was discovered that some of the primary mortgage institutions were not generating mortgages. If that is the case, it means they are not complying with the regulations. That is the reason for their blacklisting.”

PenCom introduced the equity contribution for residential mortgages in September 2022, allowing Retirement Savings Account (RSA) holders to withdraw up to 25 per cent of their balances to fund equity contributions for home ownership.

According to the commission, 24,582 RSA holders had accessed the scheme as of the first quarter of 2025, with disbursements totalling ₦149.84bn.

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RSA holders who submitted applications through the barred mortgage banks are now advised to reapply with other eligible PMBs. Those who have made upfront payments were urged to contact the affected institutions for the next line of action.

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VIDEO: How ‘Close Friend’ Leaked Cat Secret To Security During My House Invasion — Sunday Igboho

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Yoruba Nation agitator, Chief Sunday Adeyemo, popularly known as Sunday Igboho, has opened up again on the July 1, 2021 midnight invasion of his Ibadan residence by security operatives, including the Department of State Services (DSS).

Speaking during a visit to the Olowo of Owo, Oba Ajibade Gbadegesin Ogunoye III, at his palace in Ondo State, Igboho alleged that the attack was carried out with the intent to take his life.

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When my house was invaded, they wanted to kill me but failed. Some said my intestines were shattered, others said my leg was broken, but there was nothing of such. They fired guns at me very well, but the prayers of you my fathers on me were answered.”

According to him, the DSS operatives forcefully gained entrance into his residence and pointed a gun at his Personal Assistant so he could lead them to his room.

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Death of cat after friend’s betrayal

While recalling the invasion, Igboho said one of his trusted friends betrayed him by leaking sensitive information about his cat to the operatives.

He disclosed that the so-called ‘trusted’ friend had told the agents not to let the cat escape, which led to the security operatives killing the animal.

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When I opened the door of my room for them, they saw my cat on the bed. One of my friends that I entrusted with secret had told them not to let the cat go. So they killed the cat and wrapped it with clothes like a corpse. They destroyed everywhere in the house and killed one of my brothers alongside one other person and they left,” he narrated.

Appeal to the Olowo

Speaking at the palace of the Olowo, Igboho said his absence from the country had lasted about five years and that he was eager to return to contribute to tackling insecurity in the South-West.

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READ ALSO:JUST IN: Sunday Igboho Returns To Nigeria

“But why I came to meet you Kabiesi is that till when will I be doing that. Nigeria is my motherland. This is about five years since I’ve been chased from here. Tinubu is your son, you can convince him to free me. If not for the wanted tag on me, I would have come to Nigeria to face the insecurity facing the South-West region. I would have entered the bush and faced them,” Igboho pleaded with the monarch.

Monarch’s response
In his response, Oba Ogunoye described Igboho as a beacon of hope for his generation and future ones, urging him not to be discouraged by the challenges he has faced.

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The monarch enjoined Igboho and his supporters to remain law-abiding amid ongoing challenges.

He assured him of continued support and called for peace and cooperation across South-West communities, noting that no region can achieve sustainable development without security.
(TRIBUNE)

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