Thursday, June 4, 2026

The Sun Nigeria

Eroton challenges appointment of administrator, raises jurisdiction concerns

Eroton-1

By Lukman Olabiyi

A legal dispute has emerged over the management of Eroton Exploration and Production Limited, with the oil and gas firm seeking to halt the enforcement of interim court orders that placed it under administration.

Eroton, through its counsel has approached the Federal High Court in Lagos to stay all actions stemming from interim ex parte orders issued on January 20 and 29, 2026.

The company is asking the court to suspend the orders pending the determination of applications contesting both their legality and the court’s jurisdiction over the matter.

To this end, Eroton has filed three applications: a Motion on Notice to set aside the interim orders and restrain their execution; a Notice of Preliminary Objection challenging the court’s jurisdiction; and a substantive motion seeking a stay of execution and injunctions to maintain the status quo.

The filings collectively aim to pause the administration process until the jurisdictional questions are resolved.

The controversy originated from proceedings instituted by the Lagos State Internal Revenue Service (LIRS), which led the court to appoint insolvency practitioner, Mr. Amala Umeike, as Administrator of the company.

Following his appointment, Umeike reportedly notified Eroton’s management and convened a meeting scheduled for February 11 at Stren & Blan Partners in Lagos, according to a letter dated February 6, 2026.

However, in documents filed on February 9, 2026, Eroton argued that the Federal High Court lacks the authority to entertain the suit or grant the interim orders.

The company further alleged that the orders were obtained without full disclosure of material facts and maintained that the initiating party is not a juristic entity capable of seeking administration under Sections 450 and 868 of the Companies and Allied Matters Act, 2020.

In an affidavit sworn by Felix Deckon, Senior Litigation Officer at Osborne Law Practice, the company warned that the interim orders could disrupt its operations.

Deckon described Eroton as an indigenous oil and gas producer that operated Oil Mining Lease (OML) 18 in the Niger Delta between 2015 and 2023, recording notable growth and currently holding a Petroleum Prospecting Licence valid until 2038.

Eroton is therefore asking the court to restrain LIRS and the appointed Administrator from acting on the interim orders and to nullify all steps already taken pursuant to them.

The company also argued that once a court’s jurisdiction is challenged, it must first determine that issue before proceeding further, noting that any additional actions could prejudice its rights.

Court filings emphasised that the judiciary possesses inherent powers to reverse actions already taken, prevent abuse of court process, and safeguard judicial integrity.

As of press time, no date has been scheduled for the hearing of the motions.