FBN Debt: Court Freezes Nduka Obaigbena Assets in Banks
The Federal High Court sitting in Lagos has restrained commercial banks in Nigeria from releasing or dealing with all monies and assets up to $225.8 million due to Nduka Obaigbena from any account maintained by him.
Obaigbena is the chairman and editor-in-chief of THISDAY Media Group and Arise News Channel. This decision follows a lawsuit filed by First Bank of Nigeria Limited and FBNQuest Trustees Limited seeking to recover an amount worth about N1.2 trillion in local currency.
The duo accused General Hydrocarbons Limited of owing them a staggering $225,802,379.69 ($225.8 million) in outstanding debt from loan facilities granted as of 30 September 2024.
The court also blocked all commercial banks from releasing or dealing with all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited.
The three individuals are directors and shareholders in General Hydrocarbons Limited, an oil and gas firm. First Bank of Nigeria Limited and FBNQuest Trustees Limited had, on 27 December 2024, approached the court to seek orders in respect of a total claim of $225.8 million.
The amount, $225.8 million, is alleged by the plaintiffs to be an outstanding indebtedness on General Hydrocarbons’ account with First Bank as of 30 September 2024.
A report by People Gazette revealed that the December 30, 2024, Mareva order sought to prevent Mr Obaigbena from moving any assets linked to him from the jurisdiction of the Federal High Court.
First Bank had filed a debt-recovery suit against Mr Obaigbena and his family members, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, saying they used their oil servicing firm General Hydrocarbons Limited to assume debt of about $718 million.
At least $225 million had been frozen in bank accounts run by the Obaigbenas as part of the order, which was issued by Justice Deinde Dipeolu in suit FHC/L/CS/2378/2024.
The judge also said all banks licensed to do business in Nigeria should immediately seize all financial transactions to the Obaigbenas and laundry of businesses linked to them.
In the January 9, 2025, letter from their lawyers, Abiodun Layonu & Co., the Obaigbenas argued that First Bank was trying to force them to take responsibility for up to $718 million in delinquent loans against Atlantic Energy.
The lawyers warned First Bank of “grave legal implications” for going to another judge to obtain the Mareva order when a separate federal judge already had a previous injunction prohibiting any actions against the Obaigbenas over the dispute.
The lawyers cited a December 12, 2024, judgement by Justice Lewis Allagoa of the Lagos Division of the Federal High Court, which “unequivocally and emphatically restrained First Bank from taking any steps whatsoever to enforce any security, receivables, instrument, financial documents, or assets of our clients pending the hearing and determination of the ongoing arbitration proceeding between our client and the FBN.”
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