Nova Merchant Bank Seeks to Wind Up Midwestern Oil Over N1.6bn Debt

Nova Merchant Bank Limited has taken legal action against Midwestern Oil & Gas Company Limited, seeking to wind up the latter over an unpaid debt of N1.6 billion.

The bank claims that Midwestern Oil & Gas Company Limited has failed to meet its financial obligations despite repeated demands for payment.

According to court documents, the debt arose from a loan facility extended to Midwestern Oil & Gas Company Limited by Nova Merchant Bank Limited.

The loan was intended to support the company’s operations and expansion plans. However, the company has allegedly defaulted on the loan, prompting the bank to take legal action.

The bank is now seeking an order from the court to wind up Midwestern Oil & Gas Company Limited and appoint a liquidator to oversee the company’s assets’ sale.

The proceeds from the sale will be used to settle the outstanding debt.

The case has generated considerable interest in the Nigerian business community, with many observers expressing concern about the potential impact on the oil and gas sector.

The sector has been struggling in recent years due to a variety of factors, including low oil prices and security challenges.