Court Blocks Obaigbena’s Bank Assets Due to Debt Allegations
A recent development has shaken the financial world as a Federal High Court in Ikoyi, Lagos, has taken a decisive step in restraining commercial banks in Nigeria from releasing or dealing with all monies and assets up to $225.8 million linked to Nduka Obaigbena, the chairman and Editor-in-Chief of THISDAY Media Group and Arise News Channel. This drastic measure comes as a response to a lawsuit filed by First Bank of Nigeria Limited and FBNQuest Trustees Limited, seeking to recover a staggering amount worth about N1.2 trillion in local currency. The lawsuit alleges that General Hydrocarbons Limited, an oil and gas firm, owes the plaintiffs a jaw-dropping $225.8 million in outstanding debt from loan facilities granted as of 30 September 2024.
Directors and Shareholders Implicated
The court’s ruling also extends to blocking all commercial banks from releasing or dealing with any monies or assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited. These three individuals are directors and shareholders in General Hydrocarbons Limited, making them central figures in this complex financial dispute that has captivated the attention of many.
Legal Battles and Financial Turmoil
First Bank of Nigeria Limited and FBNQuest Trustees Limited took legal action on 27 December 2024 to seek orders related to a total claim of $225.8 million, which they allege is an outstanding debt owed by General Hydrocarbons Limited. This move has sparked a series of legal battles and financial turmoil that have left many wondering about the implications for all parties involved. The freezing of at least $225 million in bank accounts run by the Obaigbenas is just the beginning of what promises to be a long and arduous legal process.
Legal Defense and Ongoing Disputes
In response to these allegations, the Obaigbenas, through their legal representatives, have argued that First Bank is attempting to hold them accountable for delinquent loans amounting to $718 million against Atlantic Energy. They have raised concerns about the legal implications of the Mareva order issued against them and emphasized the ongoing arbitration proceedings that are crucial to resolving this dispute. As the legal battle unfolds, the financial world watches with bated breath to see how this high-stakes drama will ultimately play out.
This financial saga serves as a cautionary tale about the complexities and challenges of high-stakes financial dealings, reminding us all of the importance of transparency, accountability, and ethical business practices in the ever-evolving world of finance.
