Court Freezes Obaigbena Bank Assets Over Alleged Debt

A Federal High Court sitting in Ikoyi, Lagos, has issued an order preventing commercial banks in Nigeria from releasing or handling any assets or monies up to $225.8 million linked to Nduka Obaigbena, the chairman and Editor-in-Chief of THISDAY Media Group and Arise News Channel. This ruling follows a lawsuit filed by First Bank of Nigeria Limited and FBNQuest Trustees Limited, who are seeking to recover about N1.2 trillion in local currency. The lawsuit alleges that General Hydrocarbons Limited, an oil and gas firm, owes $225.8 million in outstanding debt from loans granted as of September 30, 2024.

The court also extended the freeze to assets and funds belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited. The three individuals are directors and shareholders in the company. First Bank and FBNQuest Trustees approached the court on December 27, 2024, requesting orders to block the funds, which they claim are linked to an outstanding debt by General Hydrocarbons. The plaintiffs allege that the debt remains unpaid on the company’s account with First Bank as of the specified date.

A Mareva order was issued on December 30, 2024, to prevent the Obaigbenas from moving any assets linked to them out of the jurisdiction of the Federal High Court. First Bank had filed a debt-recovery lawsuit against Obaigbena and his family, stating that General Hydrocarbons had accumulated a debt of around $718 million. As part of the order, $225 million had already been frozen in bank accounts controlled by the Obaigbenas, with further orders issued to prevent all financial transactions involving them and their businesses.

In response, the Obaigbenas, through their lawyers Abiodun Layonu & Co, argued that First Bank was attempting to make them responsible for the entire $718 million debt related to Atlantic Energy. The lawyers warned of serious legal consequences if First Bank continued its actions, citing a previous injunction issued by Justice Lewis Allagoa on December 12, 2024. This injunction barred First Bank from taking any steps to enforce security or seize assets related to the dispute while arbitration proceedings are ongoing.