A Federal High Court has issued a Mareva injunction freezing $225.8 million in assets linked to General Hydrocarbons Limited and its owner, media mogul Nduka Obaigbena, following allegations of debt default. The order, secured by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, was granted to recover an outstanding loan facility.
According to court documents, General Hydrocarbons, an oil and gas company owned by Obaigbena, allegedly defaulted on loan repayment as of September 30, 2024. The loan was secured with crude oil stocks, insurance policies, and receivables. However, the plaintiffs claim that the funds were diverted for personal expenditures, including luxury real estate purchases and private jet operations.
The Mareva injunction affects multiple financial institutions, barring them from releasing or facilitating transactions involving the defendants’ funds. Major banks, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank, have been directed to freeze accounts associated with General Hydrocarbons. Digital payment platforms like Paystack and Piggyvest were also ordered to comply.
The court’s ruling further mandates companies involved in operations at Oil Mining Lease (OML) 120 to submit production and revenue records. Proceeds from OML 120 are to be diverted to the plaintiffs’ account pending further hearings.
Legal experts highlight the significance of the Mareva injunction, which prevents asset dissipation and underscores the seriousness of the allegations. Observers believe the case could set a new precedent for handling corporate debt disputes in Nigeria.
The Committee for the Defence of Human Rights (CDHR) has also called for transparency and accountability in corporate governance. Meanwhile, market analysts are closely monitoring the case, as FBN Holdings’ stock dipped 1.27% following the news.
The legal battle continues, with further hearings expected to determine whether the frozen assets will be liquidated to settle the debt. Stakeholders in Nigeria’s financial and media sectors are watching the proceedings, as the outcome could have significant implications for corporate debt recovery and governance practices in the country.
