ARTICLE
29 April 2026

₦705m Lost In Fuel Deal: Recovered Through Court-Backed Mediation

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Olisa Agbakoba Legal (OAL)

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Olisa Agbakoba Legal (OAL) is a leading world class legal solutions provider with clients in diverse sectors of the Nigerian economy. Our diversified skills ensure that we provide innovative legal solutions to our clients. At OAL, we are always devoted to our EPIC values: our excellence, professionalism, innovation & commitment.
A fuel supplier failed to deliver 2 million litres of Automotive Gas Oil despite receiving ₦705 million upfront payment, leading to litigation that ultimately resulted in a court-enforced settlement.
Nigeria Litigation, Mediation & Arbitration
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In commercial transactions, the success of a deal hinges on the integrity and reliability of the people involved.

Our client, Boaz Commodities Limited, entered into what appeared to be a straightforward fuel supply agreement with MMB Petroleum & Chemical Company Limited. The deal was simple: they would supply 2 million litres of Automotive Gas Oil (AGO), structured in two clear tranches, payment for the first million litres made upfront, with the balance due upon full delivery. It seemed like a secure arrangement.

So, our client paid ₦705 million. But the fuel never arrived.

Meanwhile, our client’s money sat with a supplier who had clearly no intention of delivering the promised product or returning the funds. That’s when we stepped in.

We initiated proceedings at the Lagos High Court and crafted a robust litigation case focused on the facts of the situation: the payment made, the agreement established, the default by the supplier, and the damage inflicted on our client’s business. When the court encouraged both parties to consider alternative dispute resolution, we didn’t view mediation as just a formality. Instead, we approached it fully prepared, with a clear goal: to recover what our client was owed and bring this matter to a satisfying conclusion.

And it worked.

Terms of Settlement were reached between the parties. We then presented these terms to the court, which formally adopted them as the court’s judgment, granting our client a legally binding, enforceable resolution.

The dispute is over. The matter is closed.

If someone owes you money and refuses to pay, trust us to recover it for you.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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