Muhammadu Indimi bought out his children’s stakes for $10m

Amid a family feud over $435m in dividends, Oriental Energy has told a federal court that Muhammadu Indimi bought out his children’s stakes for $10m, meaning they have no grounds to claim $43.5m from the company.

Muhammadu Indimi, the chairman of Oriental Energy, hosted Vice-President Kashim Shettima and other governors in Dubai last December for the inauguration of his Floating Production Storage and Offloading (FPSO) vessel for Okwok Field. The leaders praised him for the vessel’s expected boost to Nigeria’s crude oil production capacity by 30,000 barrels per day.

At the event, Shettima described Indimi as a model businessman and a symbol of excellence in the oil and gas industry. However, despite the accolades, the 77-year-old businessman remains entangled in a bitter legal battle with his children.

In November 2023, two of his daughters, Ameena Indimi Dalhatu and Zara Indimi, both former board members of Oriental Energy, filed a lawsuit against the company, alleging they were unfairly denied their share of $435.1 million in declared dividends from 2016.

The sisters claimed their father intimidated them and other board members into transferring their shares to him, increasing his ownership from 60% to 99.94%, while reducing their individual stakes to just 0.6% each.

They insisted they are jointly entitled to 10% of the company’s dividends—around $43.5 million—and accuse their father of high-handedness and failing to establish proper corporate governance structures.

In a counterclaim, Oriental Energy dismissed the allegations, arguing that Indimi legally compensated his children for their shares.

The company maintained that each of the eight affected shareholders received a combined $10 million in exchange for their stakes—money which, it claims, Indimi originally gave them as a gift.

According to court filings, Ameena Indimi, who was then the company’s Managing Director, received $3 million in her Stanbic IBTC account on July 19, 2016, while seven other siblings—including Zara—were paid $1 million each in the same week.

The beneficiaries reportedly include:

Mustafa Indimi, Ahmed Mohammed Indimi, Amina Indimi Fodio, Yakolo Indimi Babangida, Jibrilla Indimi and

Ibrahim Indimi.

Oriental Energy presented emails purportedly sent by Ameena Indimi on May 22, 2016, in which she allegedly advised her father to offer a financial incentive to persuade shareholders to sign away their dividend rights.

One of the emails reads:

“Dear Baba, in preparation for the board meeting, please find attached a draft for the transfer of all dividend rights from all 5% stakeholders to the principal shareholder. It is still a draft, and we will get a document ready by Thursday morning, Insha Allah. The struggle we have is that, in order for this to work, you will have to incentivize the shareholders by putting a sweetener on the table.”

Oriental Energy claims that the $10 million payout was this so-called “sweetener” and insists that Indimi should not be dragged into the lawsuit. The company further stated that the billionaire businessman had raised, educated, and provided career opportunities for his children, only for them to now turn against him.

Oriental Energy denied allegations that the company declared $435 million in dividends in 2016 while refusing to disclose how much was actually paid out.

The company also rejected claims that it lacked proper corporate governance structures or had received warnings from federal tax authorities.

It has asked the Federal Court to dismiss the lawsuit, arguing that it has no merit since the plaintiffs were already compensated.

Muhammadu Indimi is one of Nigeria’s wealthiest businessmen, with 20 children, many of whom are married into powerful political and business families.

His daughter Yakolo Indimi was married to Mohammed Babangida, son of former military president, Ibrahim Babangida, while his son, Ahmed Indimi is married to Zahra Buhari, daughter of former President Muhammadu Buhari.

He is also an in-law to Africa’s richest man, Aliko Dangote.

Founded in 1990, Oriental Energy operates three major offshore oil projects in Nigeria: OML 115, Ebok Field (OML 67) and Okwok Field (OML 67)

Despite the ongoing family feud, at least five of Indimi’s children still serve on the board of Oriental Energy.

While the legal battle over Oriental Energy’s $435 million dividends continues, this case underscores the complex dynamics of family-run businesses, where personal and corporate interests often collide.

As the court proceedings unfold, the public will be watching closely to see whether this billion-dollar dispute will be resolved through legal arbitration or further escalate into a full-blown family crisis.