The Lagos State High Court has granted United Bank for Africa (UBA) Plc an interim order against Switzerland-based energy trading company Vitol SA over an alleged diversion of petroleum products valued at $242m.
Justice K. A. Jose granted three requests by UBA, including measures to prevent the disposal of assets and dealings in funds up to the disputed amount. The judge stated that the orders applied to Vitol SA, the second respondent in the case.
UBA alleged that Vitol and four shipping companies failed to deliver petroleum cargoes to the bank despite the completion of their voyages to Nigeria.
The bank’s lawyer, Bode Olanipekun, a Senior Advocate of Nigeria, urged the court to grant the interim orders to preserve assets while the dispute is being resolved.
In an affidavit supporting the application, UBA’s Group Head of Recoveries and Remedial Management, Anthony Chilaka, said the bank had issued a letter of credit in favour of Vitol to facilitate the petroleum transaction.
He explained that the cargoes were shipped to Nigeria and covered by bills of lading issued by the vessels’ masters. According to the affidavit, Vitol later endorsed the documents in favour of UBA and handed over the original copies to the bank.
UBA maintained that the documents entitled it to take possession of the petroleum products upon their arrival.
However, the bank alleged that it did not receive the gasoil, claiming that the cargoes were diverted to another party instead of being delivered as agreed.
The bank is seeking to establish that Vitol and the relevant vessel owners are liable for alleged conversion, misrepresentation and negligence arising from the transaction.
The application was filed under the High Court of Lagos State (Civil Procedure) Rules 2019 and the court’s Practice Direction No. 2 of 2019.
Thirty-four financial institutions and public agencies, including the Nigerian Ports Authority and the Nigeria Customs Service, were also cited in connection with the application.
The interim order is intended to preserve assets while the substantive case proceeds. The allegations against Vitol and the other parties have not been established by a final court judgment.
