Court orders stay of execution on appointment of administrator in AMNI Petroleum’s case

By Akin Kuponiyi

A Federal high court sitting in Lagos has granted an order staying the execution of the judgment obtained by CENROC FPSO SOLUTIONS NIGERIA LIMITED appointing one Mr.SAM AIBONI as administrator of AMNI INTERNATIONAL PETROLEUM DEVELOPMENT Company.

On the 13th of February 2026 AMNI International filed a motion on notice dated 13-02-2026 in which it sought the following reliefs:

1. An order of the Court Staying Execution of the Judgment of the Court, delivered by Honourable Justice Chukwujekwu Aneke delivered on 13 February 2026, in Suit No: FHC/L/CS/1454/2025, pending the hearing and a determination of the appeal filed by the company.

2. In the alternative, An order of injunction restraining the Plaintiff CENROC FPSO SOLUTION and parties to be bound whether by themselves, their Counsel, agents, privies, servants, officers of the Court, or through any other persons acting for or under authority from enforcing, executing, realizing or otherwise giving effect to the Judgment of this Honourable court.

Dissatisfied with the decision of the Court, the AMNI INTERNATIONAL PETROLEUM DEVELOPMENT COMPANY filed a Notice of Appeal dated 13 February 2026, wherein substantial issues of law have been raised.

The Applicant’s appeal is likely to succeed at the Court of Appeal, thereby necessitating the need to stay the execution of the judgment being appealed against, if this application is not granted, the Respondent will proceed to execute the judgment of this Honourable Court, which is likely to render the decision of the Court of Appeal nugatory.

On Feb. 13, the Court delivered judgment in favour of the CENROC FPSO SOLUTIONS NIGERIA and against the company in this case.

The Company (AMNI) being dissatisfied with the judgment appealed to the Court of Appeal via a Notice of Appeal believing that the grounds of the appeal as contained in the Notice of Appeal attached to the company’s motion are fundamental, germane and raise good and substantial issues of law which have great and tremendous chances of success on appeal.

That if the respondent should execute the judgment by taking steps to effect an administration order over the company, it will be difficult and impossible to reverse same and its effect it will have on the company, in the event that the company’s appeal succeeds, and the judgment is reversed.

The applicant submitted that it is deserving of an order staying the execution of the Judgment of the Court.

The Company has placed sufficient materials before the court for it to be entitled it to the grant of the reliefs sought as it has filed a competent appeal; established special circumstances; that there are arguable grounds of appeal as well as the fact that balance of convenience is on the side of the Applicant.

Therefore, it will be in the interest of justice to grant the application to enable the Court of Appeal pronounce on the issues one way or the other.

However, in an affidavit through one Henrieta Benyogor, a legal practitioner in the law firm representing CENROC FPSO SOLUTIONS NIGERIA LTD, contended that the Administration sought to be stayed has been effected by the Administrator, and the act sought to be restrained has been completed.

The alleged solicitors of the company have been debriefed by the Administrator, who is now in charge of the affairs of the company, if the court is minded to grant a Stay, it should be on the condition that the company deposit the Judgment sum of $15,261,329.00 (Fifteen Million, Two Hundred and Sixty-One Thousand, Three Hundred and Twenty-Nine Dollars), into the registry of the court to abide by the outcome of the appeal.

In his ruling, the presiding Judge, Justice Chukwujekwu Aneke, said he agreed as submitted by the learned senior counsel for the Judgment Debtor/Applicant, AMNI International Petroleum Company Limited “that this is not a debt recovery action but an insolvency proceeding under the new companies and allied matters Act.’ Companies and Allied Matters Act, 2020′ which does not require the Applicant to pay the said judgment sum in an interest yielding account before the order sought can be granted.

“This is because in my humble view, if these proceedings were to be about a simple contract of debt recovery this court would not have had the requisite jurisdiction to adjudicate on same.

“Therefore, having carefully considered the materials placed before this Honourable Court, it is my view that Judgment Debtor/Applicant have made out a case for the grant of the said application for a stay of execution of the Judgment of this Honourable Court delivered on the 13th of February 2026 and I so hold.

“However, before concluding this ruling, I must hasten to correct the impression created by the Court-appointed Administrator in his processes as if receivership is synonymous with administration. In a receivership, the receiver acts as an agent and is accountable only to the appointing creditor, who also bears liability for his default. The receiver realizes assets, applies the proceeds to the secured debt, and remits any surplus to the company.

“Overtime, it became clear that the concept of receivership was deficient as it lacked stakeholder balance and provided no moratorium against other creditors, leading to parallel enforcement actions and asset dissipations.

“Recognizing these economic inefficiencies, CAMA 2020 introduced novel corporate rescue mechanisms modelled after the English Administration regime under Part XViii of CAMA, 2020.

“Administration proceedings became a structured statutory mechanism aimed at reviving distressed but viable companies. See Section 444 of CAMA, 2020 which outlines the key objectives of administration proceedings. Administration carries an automatic moratorium.

“In the result, the Judgment Debtor/Applicant’s AMNI INTERNATIONAL PETROLEUM DEVELOPMENT COMPANY application for stay of execution pending appeal dated and filed on the 13th day of February 2026 is hereby granted.”