$225.8m debt: Court freezes assets belonging to Arise TV owner Nduka Obaigbena
A Federal High Court sitting in Lagos has frozen the accounts of General Hydrocarbons Limited in all financial institutions in Nigeria.
It barred the banks from releasing funds to the company owned by Mr. Nduka Obaigbena, the Chairman of Arise Television and publisher of ThisDay Newspapers.
The court’s decision follows Obaigbena’s alleged $225.8 million unpaid loan he owed to First Bank of Nigeria (FBN) Holdings Plc.
Justice Deinde Dipeolu granted the order based on an application by First Bank of Nigeria Limited and FBNQuest Trustees Limited, both are subsidiaries of FBN Holdings Plc, a publicly listed financial services company in Nigeria.
Commercial banks are also restricted by the court order from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited, an oil and gas firm in which all the three are directors and shareholders.
The company is mentioned as the operator of OML 120, an oil producing block in Nigeria.
The injunctions were granted to prevent the defendants, General Hydrocarbons Limited and other associated entities, from transferring or dissipating assets while a legal dispute over unpaid loan facilities is resolved.
The loans, reportedly issued by the plaintiffs, amount to $225,802,379.69 as of September 30, 2024.
Financial Institutions restrained by the injunctions include Guaranty Trust Bank, Access Bank, Zenith Bank, First Bank of Nigeria, and emerging digital platforms like Flutterwave, Paystack, and Piggyvest from releasing funds or dealing with any accounts associated with the defendants.
Freezing order against my accounts is abuse of court process – Nduka Obaigbena
Meanwhile, lawyers to Nduka Obaigbena, have described the freezing order obtained by First Bank of Nigeria Limited against his bank accounts as “an abuse of court processes.”
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Abiodun Layonu & Co, the solicitors to General Hydrocarbons made the disclosure in a statement on Thursday titled “To Whom It May Concern”.
In their reaction, the solicitors alleged there are legal loopholes in the orders granted by the court to the bank.
They also noted the importance of stating the grave legal implications of acceding to the lender’s attempt to enforce the orders against their clients’ interests in First Bank.
“Kindly note that the Federal High Court, per Allagoa, J had in a final judgment delivered on 12th December 2024 in Suit No. FHC/L/CS/1953/2024 – General Hydrocarbons Limited v. First Bank of Nigeria Limited, unequivocally and emphatically restrained FBN from taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of our client pending the hearing and determination of the ongoing arbitration proceeding between our client and FBN,” the lawyers said.
“We consider it imperative to draw your attention to the fact that the restraining order of the Federal High Court against FBN in Suit No. FHC/L/CS/1953/2024 emanated from a final judgment of a court of competent jurisdiction which has not been set aside on appeal, and which was delivered prior to the subject of interim order of the Federal High Court which FBN seeks to enforce against our client.”
General Hydrocarbons’ lawyers argued that the extant orders of the Federal High Court per. Allagoa, J, made on 12 December 2024, after hearing both parties, is at variance with the orders of the Federal High Court per Dipeoplu, J which was obtained ex parte by First Bank on 30 December 2024.
“The plausible explanation for this is that FBN deliberately omitted to bring the orders of the court made on 12th December 2024 to the attention of the court in subsequent suit coram Dipeolu, J. This is a most blatant case of abuse of court process by FBN which has sought to overreach our client by approaching another judge of the same court to obtain favourable orders that directly contravene an extant order of the court which has not been set aside on appeal or otherwise,” the document said.
