A fierce legal battle between the children of Nigerian oil magnate Alhaji (Dr.) Muhammadu Indimi and Oriental Energy Resources Limited has thrown the spotlight on the company’s governance structure—raising serious concerns about corporate accountability, transparency, and shareholder rights in Nigeria’s oil and gas sector.
Court filings obtained by ireport247news.com and corroborated by several industry insiders suggest that the long-standing Oriental Energy Resources Ltd family rift is now testing the limits of Nigeria’s regulatory framework for private companies, and by extension, the implementation of corporate governance principles within the nation’s energy sector.
Founded by Alhaji Indimi, Oriental Energy Resources Ltd is a private Nigerian oil exploration and production company with significant upstream interests. Despite its stature and multi-million-dollar earnings, recent revelations indicate that the company may have failed to adhere to essential corporate governance principles expected of responsible business enterprises.
According to court papers, three separate lawsuits have been filed by Alhaji Indimi’s daughters—Ameena and Zara Indimi—against Oriental Energy. Two of the cases are pending at the Federal High Court, Abuja, while the third is before the National Industrial Court. The lawsuits challenge share dilution practices, unpaid dividends, and unresolved employment claims—all of which point to a systemic breakdown in ethical governance practices within the company.
Corporate governance refers to the systems, rules, and processes by which companies are directed and controlled. In Nigeria, the Nigerian Code of Corporate Governance (NCCG) 2018, issued by the Financial Reporting Council (FRC), sets the standards for accountability, fairness, and transparency among corporate entities. While the NCCG may not apply strictly to private firms like Oriental Energy, emerging Environmental, Social and Governance (ESG) standards and regulatory developments in the oil sector underscore the need for even private companies to operate transparently.
In 2023, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issued a draft Code of Conduct aimed at improving governance in the oil and gas industry. Although not yet gazetted, it signals regulators’ intent to clamp down on opaque management practices—a scenario now starkly illustrated by the Oriental Energy case.
Central to the legal drama is the plaintiffs’ demand for payment of unpaid dividends from 2015. Ameena and Zara Indimi claim they were each allotted 1.5 million ordinary shares in Oriental Energy in 2011 following a share capital increase. This allocation gave them 5% equity ownership each, confirmed through corporate resolutions and filings with the Corporate Affairs Commission (CAC).
Court documents reveal that in 2015, Oriental declared a USD $420 million dividend, entitling each daughter to USD $21 million. However, the company allegedly withheld these payments. The plaintiffs presented the company’s 2015 audited financial statement, prepared by renowned accounting firm SIAO Partners, as proof of the declared dividends—contradicting Oriental’s claim that no such dividends were declared.
In a move the plaintiffs describe as an act of bad faith, Oriental Energy’s Chairman and founder, Alhaji Indimi, allegedly orchestrated a massive capital increase in 2016—raising the company’s share capital from ₦30 million to ₦2.45 billion. Over 2.42 billion new shares were issued, all allegedly allotted exclusively to Alhaji Indimi himself, without any financial consideration.
This move drastically diluted the equity of existing minority shareholders. The plaintiffs’ ownership was slashed from 5% to just 0.06% each, effectively marginalizing them in company decision-making. According to their suit, this move was neither transparent nor justified by financial input from the Chairman, thereby breaching basic corporate ethics and shareholder protection principles.
Oriental Energy, in its court responses, does not deny the initial share allotments. However, the company claims that the shares were “gifts” from Alhaji Indimi and therefore did not entitle the plaintiffs to any dividend or benefit. Furthermore, the company asserts that a Deed of Transfer was signed in 2016, through which the plaintiffs allegedly relinquished rights to past and future dividends.
Yet, the plaintiffs maintain they were legitimate shareholders entitled to dividend payments and dispute the existence and validity of any such deed. If true, this could amount to coercion or misrepresentation, raising serious red flags over how Oriental Energy manages minority shareholder rights.
Adding another layer to the ongoing legal crisis is a separate suit filed by Ameena Indimi at the National Industrial Court, demanding payment of terminal benefits and unpaid entitlements. She claims to have worked at Oriental Energy from 2000 to 2018, rising from Executive Assistant to Chief Operating Officer (COO) and finally to Senior Executive Vice President (SEVP).
Her contributions allegedly included overseeing financial compliance and implementing key governance reforms—efforts she says improved Oriental’s transparency. Despite this, she claims the company failed to pay her End of Service Gratuity, 13th-month salary, and leave allowances upon her resignation.
Oriental has denied that Ameena was ever formally employed by the company. However, Ameena presented employment records and internal documents indicating otherwise, which now form part of her legal evidence.
The Oriental Energy dispute is emblematic of a broader issue plaguing corporate Nigeria—particularly within family-owned enterprises. Legal experts and governance advocates argue that minority shareholder protections and board accountability are often compromised by opaque ownership structures, nepotism, and informal decision-making.
“While private companies like Oriental may not fall directly under the NCCG, the global shift toward responsible business practices means governance failures are no longer private matters,” says corporate governance expert Chuka Odigbo. “The Oriental case sends a signal to both regulators and investors about the urgent need for enforceable governance codes in all sectors, particularly oil and gas.”
As the legal battle rages on, the matter remains sub judice. The Federal High Court and the National Industrial Court are expected to deliver rulings in the coming months, which could set a precedent for shareholder and employee rights in private sector governance.
Regardless of the outcome, the case has already ignited public discourse around corporate ethics, nepotism, and shareholder treatment in family-run businesses. It underscores the need for transparency, accountability, and respect for governance processes—principles vital for building trust in Nigeria’s corporate landscape.