By Peter Omopo
Abuja, July 10, 2025 — The High Court of the Federal Capital Territory (FCT), Abuja, has nullified ongoing arbitration proceedings at the International Chamber of Commerce (ICC), London, initiated against Nigerian oil company Aiteo Eastern Exploration and Production Company Limited by a consortium of lenders, including Shell and the African Finance Corporation (AFC).
Delivering judgment on Tuesday, Justice S.B. Belgore ruled that the arbitration was initiated in defiance of existing court injunctions and therefore amounted to a “brazen affront” to Nigeria’s judicial authority.
“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,” the judge declared.
The case revolves around Aiteo’s $3.01 billion acquisition of Oil Mining Lease (OML) 29 and the Nembe Creek Trunk Line from Shell in 2014. The acquisition was partially financed through a consortium that included Shell Western Supply & Trading, Shell International Trading & Shipping, the African Finance Corporation, and several Nigerian banks. Aiteo founder Benedict Peters reportedly contributed nearly $1 billion in equity to the deal, which revitalised crude oil production at the asset.
Disputes later arose with Tempo Energy Nigeria Limited, a minority equity partner in the transaction, which alleged it was excluded from legal and arbitral proceedings, despite holding a material interest in the deal. Tempo also accused the lending consortium of breaching the terms of the financing agreement.
Tempo filed suit FCT/HC/CV/079/2021 on January 14, 2021, seeking to restrain all parties from proceeding with legal actions or arbitration abroad without its inclusion. The court issued interim injunctions on January 22, 2021, halting any further foreign proceedings pending resolution of the matter in Nigeria.
Despite this, the ICC arbitration continued in London between 2021 and 2024. On April 25, 2025, the Court of Appeal upheld the FCT High Court’s injunctions, labelling the defendants’ appeal an abuse of court process, and awarded ₦1.5 million in costs.
At the resumed hearing in May 2025, Tempo’s lead counsel, Kehinde Ogunwumiju (SAN), urged the court to formally nullify the ICC arbitration, arguing it had been conducted in contempt of Nigerian judicial authority.
“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 argued.
Counsel for the defendants, including Mrs. Joke Aliyu and Mr. Babatunde Fagbohunlu (SAN), contended that the FCT High Court lacked the jurisdiction to interfere with foreign arbitral matters. However, the court disagreed, citing the parties’ disobedience to its orders.
The judgment reaffirms the binding authority of Nigerian courts over disputes involving local entities and reinforces judicial sovereignty in the face of foreign arbitration efforts.
