A serious legal controversy has emerged in Nigeria's oil and gas industry, revealing potential conflict of interest issues that could compromise the sector's integrity. The ongoing legal battle between Neconde Energy Ltd, Nestoil Ltd and First Bank of Nigeria (FBN) Plc has taken a disturbing turn with the discovery that senior lawyer Babajide Koku is simultaneously representing both FBN and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in related lawsuits.
Dual Representation Without Informed Consent
The core of the controversy centers on Babajide Koku's simultaneous representation of both financial institution FBN and regulatory body NUPRC without proper disclosure or informed consent from all parties involved. This development has raised serious ethical questions within Nigeria's legal and energy sectors.
Industry stakeholders have expressed grave concerns about how this dual representation could affect the fairness of ongoing legal proceedings and potentially undermine regulatory oversight in the country's crucial petroleum industry.
The Legal Battle Over Petroleum Assets
The complex legal dispute involves multiple parties and is being heard in two separate divisions of the Federal High Court. The cases, identified as FHC/L/CS/2127/2025 at the Lagos division and FHC/ABJ/CS/2369/2025 at the Abuja division, pit Neconde Energy Limited and Nestoil Limited against a consortium of financial institutions represented by FBN Quest Merchant Bank Limited and First Trustees Limited.
At the heart of the legal confrontation is the attempt by FBN parties to take control of critical petroleum assets belonging to Neconde Energy Limited and Nestoil Ltd. This aggressive move stems from allegations of an outstanding debt totaling approximately $1 billion, though the exact nature and validity of this debt claim remain contested in court.
Potential Impact on Nigeria's Oil Sector
Energy sector analysts and legal experts warn that the conflict of interest situation could have far-reaching consequences for Nigeria's oil industry integrity. The Nigerian Upstream Petroleum Regulatory Commission, as the primary regulatory body for the upstream petroleum sector, must maintain absolute impartiality and independence in its oversight functions.
Having the same legal counsel representing both a regulated entity and the regulator in connected legal matters creates an apparent conflict that could compromise regulatory decisions and undermine investor confidence in Nigeria's energy sector.
The situation becomes particularly concerning given the strategic importance of the petroleum assets involved and the substantial financial interests at stake. The $1 billion debt allegation represents a significant financial claim that could substantially impact the operations and ownership structures of the involved energy companies.
Industry observers note that such conflicts, if not properly addressed, could deter foreign investment and raise questions about the transparency and fairness of Nigeria's legal and regulatory frameworks governing its most important economic sector.
