United Bank for Africa secures court order in N242m Vitol dispute

A Lagos State High Court has granted an interim Mareva injunction in favor of United Bank for Africa (UBA) Plc against Switzerland-based energy trader Vitol SA and four shipping companies. The court order aims to prevent the dissipation of assets and restrict dealings with funds up to the disputed amount.

The dispute involves allegations that Vitol SA wrongfully released cargoes of petroleum products, specifically gasoil, which were consigned to UBA according to the bills of lading. UBA claims that although it issued a letter of credit to facilitate the transaction and received endorsed shipping documents entitling it to the cargo, the products were never delivered and were instead diverted to another party.

In the substantive proceedings, UBA seeks to hold Vitol SA and the vessel owners liable for conversion, misrepresentation, and negligence. The bank’s application also cited various financial institutions and public agencies, including the Nigerian Ports Authority and the Nigeria Customs Service, in connection with the matter.