The Traffic

Inside the $600M Oil Debt Drama: How Aluko, Diezani, Obaigbena, and Others Rocked First Bank

By Achimi Muktar

A $600 million debt scandal has thrust First Bank, one of Nigeria's financial giants, into the spotlight, embroiling some of the country’s most prominent names in a drama that exposes the perilous nature of oil-backed deals in Nigeria. At the center of the storm are media mogul Nduka Obaigbena, former Petroleum Minister Diezani Alison-Madueke, oil tycoon Kola Aluko, and First Bank heavyweight Femi Otedola.

The roots of this financial crisis trace back to 2011 when Atlantic Energy, a Nigerian oil company, secured a colossal loan from First Bank. The loan was intended to finance the development of oil assets, with the assets themselves used as collateral. The deal, however, quickly spiraled into turmoil when Atlantic Energy failed to meet its obligations, leaving First Bank to contend with mounting losses.

The saga has grown into a high-stakes showdown. Diezani Alison-Madueke, a former minister already infamous for corruption scandals, and Kola Aluko, a flamboyant businessman linked to Atlantic Energy, are central figures. Nduka Obaigbena, a veteran in Nigeria’s media landscape, also finds himself implicated in this tangled web of oil and finance. Meanwhile, Femi Otedola, a banking and energy magnate, is navigating the fallout as First Bank’s interests hang in the balance.

This case has brought to light the fragility of Nigeria’s oil-backed financing system, where high-profile connections and risky ventures often overshadow financial prudence. For First Bank, the implications are immense, as the institution scrambles to recover funds and protect its reputation.

As the battle unfolds, the saga serves as a cautionary tale of unchecked ambition, volatile markets, and the dangers of over-reliance on oil-backed financial strategies. With so many powerful figures and billions of naira at stake, this is a drama that will not be resolved quietly.