Court Freezes $225 Million in Assets Linked to Arise TV Owner Nduka Obaigbena
A Federal High Court has issued an order freezing assets and accounts linked to General Hydrocarbons Limited, its affiliates, and media mogul Nduka Obaigbena over a $225.8 million debt dispute. The decision follows a legal action brought by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, subsidiaries of FBN Holdings Plc, who are seeking to recover unpaid loans.
According to court filings, Obaigbena’s oil and gas company, General Hydrocarbons, failed to repay its loan by the September 30, 2024 deadline. The company, which manages Oil Mining Lease (OML) 120, is now under heavy financial restrictions.
Court Order and Restrictions on Financial Transactions
The court issued Mareva injunctions that prevent major banks, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank, from processing transactions or releasing funds tied to the defendants.
Additionally, digital payment platforms like Paystack and Piggyvest have been instructed to freeze accounts associated with the troubled company and its affiliates.
The court’s order affects a wide range of financial institutions operating in Nigeria, barring them from handling funds linked to General Hydrocarbons up to the sum of $225,802,379.69. The injunction also applies to companies operating within the OML 120 block, requiring them to submit production and financial records while diverting any proceeds to the plaintiffs’ accounts.
Allegations of Financial Mismanagement
Court documents reveal that the loans were initially secured with crude oil stock, insurance policies, and receivables. However, the plaintiffs allege that the funds were misappropriated for personal use, including purchasing luxury properties and operating private jets.
The financial institutions involved in the case have sought legal action to prevent the depletion of assets before a final ruling is reached. The injunctions also apply to individual directors of General Hydrocarbons, prohibiting them from transferring or selling personal assets in Nigeria.
Implications for Nigeria’s Financial and Media Sectors
The ongoing legal battle has significant implications for corporate governance and financial regulation in Nigeria. The case reflects increasing scrutiny of corporate debt defaults and the growing tendency of banks to pursue aggressive legal remedies to recover funds.
FBN Holdings’ stock price has already been affected by the case, dropping 1.27% to close at N31.05 on Thursday, signaling investor concern over potential ripple effects in both the financial and media industries.
What Lies Ahead?
Legal experts suggest that the court’s imposition of the Mareva injunction signals the seriousness of the allegations and the necessity of preventing further asset depletion. The case is ongoing, with more hearings to determine whether the frozen assets will be liquidated to repay the debt.
The outcome of this case is expected to influence how future corporate debt disputes are handled in Nigeria. If the court’s decision is upheld, it could set a precedent for financial institutions pursuing claims against delinquent borrowers.
As the legal proceedings continue, key players in Nigeria’s financial and energy sectors are closely watching the situation, as the final ruling could determine the fate of General Hydrocarbons and its prominent owner, Nduka Obaigbena.
