Segun Atanda/
Mutual Benefits Assurance Plc and its sister company, Mutual Exploration and Production Limited, have filed a winding-up petition against oil and gas firm Prime Exploration and Production Limited over unpaid debt amounting to ₦10.06 billion and $36.49 million.
The petition, filed before the Federal High Court in Lagos, stems from a consent judgment delivered on November 13, 2023, which established Prime Exploration’s indebtedness to the petitioners. The debt originated from multiple loans and advances granted by Mutual Benefits Assurance, with accrued interest as of February 28, 2025.
According to the affidavit sworn by Mutual Benefits Assurance’s Legal Manager, Inyene Docars Ntuk, and filed by Senior Advocate of Nigeria (SAN) Gboyega Oyewole, the companies claim the oil firm has continuously defaulted on payment despite legal and out-of-court efforts to resolve the matter.
The judgment had initially pegged the company’s debt at ₦5.7 billion and $27.7 million, with interest on the naira component accruing at 15% per annum from January 2022. Since then, the debt has ballooned due to non-payment.
The petitioners are now seeking a court order to wind up Prime Exploration and Production Limited under Sections 571(d), 572(a & b), and 573(1)(b) of the Companies and Allied Matters Act 2020, citing the company’s inability and unwillingness to pay its debt as required by law.
However, in a counter-affidavit, the respondent argues that the winding-up petition is premature and abusive, alleging that the debt is contingent and not yet due for payment. A litigation executive from the law firm representing Prime Exploration stated that the payment terms in the consent judgment are dependent on three unresolved events, including an audit of cash call obligations from 2008 to date.
They added that the accounting firm Akintola Williams Deloitte was supposed to ascertain these obligations before any settlement or set-off could be finalized. Consequently, Prime Exploration contends that Mutual Benefits is, at best, a contingent creditor and may not be a creditor at all depending on the audit’s outcome.
The company has urged the court to dismiss or strike out the petition, arguing it is a calculated attempt to harass and embarrass the oil firm in violation of the consent judgment.
The case is yet to be heard as legal fireworks loom between the two corporate entities. If granted, the winding-up order could signal the end of operations for Prime Exploration and Production Limited, sending ripples across the oil and gas sector.
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