A Federal High Court has issued Mareva injunctions freezing the assets and bank accounts connected to General Hydrocarbons Limited, its subsidiaries, and media mogul Nduka Obaigbena over an alleged debt of $225.8 million.
This ruling follows a lawsuit filed by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, both subsidiaries of FBN Holdings Plc, aiming to recover unpaid loan obligations.
Based on court documents obtained, the plaintiffs allege that General Hydrocarbons, an oil and gas company owned by Obaigbena, failed to meet its loan repayment obligations as of September 30, 2024.
The company, which holds the license for Oil Mining Lease 120, is now under significant financial constraints.
The Mareva injunctions prevent several prominent commercial banks—including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank—from allowing withdrawals or processing any financial transactions linked to the defendants.
Additionally, digital financial platforms such as Paystack and Piggyvest have been instructed to freeze accounts linked to General Hydrocarbons and its associated entities.
The injunction states:
> “An order of Mareva injunction restraining all commercial banks in Nigeria, including Guaranty Trust Bank Limited, Access Bank Plc, Citibank Nigeria Limited, Carbon Bank, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank of Nigeria Limited, First City Monument Bank Plc, Globus Bank, Heritage Bank Limited, Jaiz Bank, Keystone Bank Limited, Opay Digital Services Limited, PalmPay Limited, Paystack Payments Limited, Piggyvest, Momo Payment Service Bank Limited, Polaris Bank Limited, Providus Bank, Stanbic IBTC Bank Nigeria Limited, Standard Chartered Bank, Sterling Bank Plc, SunTrust Bank Limited, Union Bank of Nigeria Plc, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc, Zenith Bank Plc, and all other financial institutions operating in Nigeria, from releasing or dealing with any funds or assets due to the GHL up to the sum of $225,802,379.69.”
Furthermore, companies involved in Oil Mining Lease 120’s operations have been ordered to submit their production and revenue records, with all proceeds directed into the plaintiffs’ accounts until further court proceedings.
According to the court filings, the loans extended to General Hydrocarbons were secured using crude oil stocks, insurance policies, and receivables.
However, the plaintiffs argue that these funds were diverted for personal luxury expenditures, including high-end real estate purchases and private jet maintenance.
Insiders familiar with the case revealed that the financial institutions involved turned to the court to ensure that the defendants did not dissipate assets before the case reaches its final verdict.
Additionally, the injunctions apply to individual directors of General Hydrocarbons, preventing them from selling or transferring personal properties within Nigeria.
The legal proceedings against General Hydrocarbons and Obaigbena could have significant consequences for corporate governance and financial regulation in Nigeria.
This case highlights increasing scrutiny over corporate loan defaults and signals a growing trend of banks adopting more aggressive legal strategies to recover debts.
Market analysts have noted that the news had an immediate impact on FBN Holdings’ stock, which declined by 1.27% on Thursday.
Investors are closely monitoring the case, expressing concerns about potential ripple effects on Nigeria’s financial services and media industries.
Legal experts believe that the court’s decision to grant a Mareva injunction reflects the seriousness of the allegations and the need to prevent any further dissipation of assets.
As the case progresses, upcoming hearings are expected to determine whether the frozen assets will be sold to settle the outstanding debt.
Observers suggest that the ruling could set a legal precedent for how financial institutions handle cases involving delinquent corporate borrowers in Nigeria.
If upheld, the decision could encourage banks to take stronger legal measures to secure loan repayments in similar disputes.
As legal proceedings continue, key players in Nigeria’s financial and energy sectors are awaiting the court’s final judgment, which could determine the fate of General Hydrocarbons and its high-profile owner, Nduka Obaigbena.
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