United Bank for Africa secured a Lagos court order freezing assets belonging to Swiss energy firm Vitol SA over a $242 million fuel diversion claim.
The United Bank for Africa, known widely as UBA, has secured a major legal victory after a Lagos State High Court granted powerful interim freeze orders against Vitol SA, a major Switzerland-based energy trading company, and four other shipping firms over an alleged $242 million fuel cargo diversion.
The legal action unfolded at the Lagos State High Court sitting in Tapa, where presiding judge Justice K.A. Jose approved emergency asset-preservation requests, including a strict Mareva injunction, to protect the commercial bank from losing funds following the non-delivery of petroleum products financed through bank letters of credit.
The court battle began after the financial institution approached the judiciary to protect its financial interests and prevent the energy company from moving funds or hiding assets away from legal reach.
Leading the legal team for the banking institution, prominent lawyer Bode Olanipekun, SAN, asked the court to grant immediate protective orders against Vitol SA and the shipping lines involved in the transport transaction.
Ruling on the urgent application brought before the court, Justice K.A. Jose granted the bank’s requests to stop the energy firm from moving or hiding assets up to the disputed amount.
Announcing the court decision in favor of the banking institution, Justice K.A. Jose ruled: “Prayers one to three are granted as prayed against the second respondent only.”
Explaining the details behind the massive financial dispute in court documents, UBA’s Group Head of Recoveries and Remedial Management, Anthony Chilaka, stated that the bank had issued a multi-million-dollar letter of credit to help facilitate the fuel import transaction.
Detailing how the petroleum products were shipped into the country before disappearing, the bank official explained that the vessel owners issued official bills of lading and handed them over to UBA as security.
Stating that the bank had every legal right to take possession of the fuel cargo when the ships arrived at their destination, Anthony Chilaka pointed out that the products were wrongly given to other parties.
Describing how the bank was left empty-handed despite completing its financial obligations under the trade agreement, the affidavit stated: “The applicant has not been given possession of the gasoil despite completion of the voyage.”
The bank argued before the court that releasing the fuel cargoes to unauthorized persons instead of the financial institution that paid for them amounted to serious conversion, misrepresentation, and negligence by the shipping companies.
To ensure that funds cannot be easily hidden, UBA also dragged 34 different financial institutions and public offices, including commercial banks, merchant banks, the Nigerian Ports Authority, and the Nigeria Customs Service, into the court action to monitor any suspicious money movements. The court case has been adjourned for further hearings as legal teams prepare their arguments.
Jennifer Baba is a journalist, international news correspondent, and writer at Moderncrux, where she covers artificial intelligence, fintech, emerging technologies, global politics, and international affairs. Based in Nigeria, she is passionate about transforming complex global developments into clear, engaging stories that inform and inspire readers.
