Questions over impartiality trail $718m GHL Arbitration as whistleblowers raise alarm

Fresh controversy has emerged over First Bank of Nigeria’s move to take over the assets of General Hydrocarbons Limited (GHL), following claims that the Sole Arbitrator who dismissed GHL’s $718 million claim is a significant shareholder in FBN Holdings Plc, the bank’s parent company.

According to a report by Thisday and verified by Very Nigerian, retired Supreme Court Justice Kumai Bayang Akaahs, who presided over the arbitration, allegedly owns a substantial number of FBN HoldCo shares, a fact whistleblowers say he did not disclose before or during the proceedings.

Legal experts warn that if the allegations are proven, the arbitral award could be set aside under Nigeria’s Arbitration and Conciliation Act (ACA).

Justice Akaahs had dismissed GHL’s claims on the grounds that the company failed to prove breach of contract by First Bank.

However, a group known as Stock Market Whistleblowers, made up of SEC-licensed stockbrokers, insists the former justice violated the law by not declaring his interest in a company connected to the dispute he was adjudicating.

In their statement, the group alleged that Justice Akaahs holds 595,057 units of FBN HoldCo shares, including 148,888 units purchased on April 7, 2025, while the arbitration was ongoing.

The group claims access to his transaction history due to their professional capacity and has also listed other companies in which he holds shares, including Dangote Sugar, Zenith Bank, MTN Nigeria, GTCO, UBA, ETI, Lafarge Africa, Dunlop Nigeria and Daar Communications. They noted, however, that his largest investment is in FBN HoldCo.

“We were bemused to learn that Justice Akaahs was the Sole Arbitrator in the GHL vs First Bank arbitration,” the statement said. “It is difficult to understand how an active shareholder in FBN HoldCo could preside over a matter involving First Bank without disclosure or recusal.”

“His shareholding, being his highest portfolio position, was not mentioned anywhere in the award.”

Justice Akaahs was appointed Sole Arbitrator in February 2025 and delivered his final award on October 28, 2025.

The whistleblowers say they have submitted detailed evidence of his stock transactions and are ready to provide more documents to regulators, the media and the courts.

Legal analysts maintain that an arbitrator’s failure to disclose circumstances likely to raise doubts about impartiality constitutes a serious breach under the ACA.

They stress that disclosure must be made at appointment and remain continuous throughout the process.

Under Section 34 of the ACA, courts may set aside an arbitral award if the process was affected by fraud, corruption or violations of public policy, including denial of fair hearing. An undisclosed conflict of interest, experts say, could render an award invalid.

They added that arbitration relies heavily on the neutrality of arbitrators, and non-disclosure of material interests has been a solid ground for overturning arbitral decisions in similar cases.

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