A Federal High Court has issued orders to freeze the assets and accounts of General Hydrocarbons Limited, owned by media mogul Nduka Obaigbena, in connection with a $225.8 million unpaid loan. The loan, which was extended by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, remains unresolved despite repeated demands for repayment.
To prevent the potential dissipation of assets, the court granted Mareva injunctions, which restrict the transfer or depletion of the assets while the legal proceedings continue. The injunctions apply to major Nigerian financial institutions, including Guaranty Trust Bank, Zenith Bank, Access Bank, and popular fintech platforms like Flutterwave, Paystack, and Piggyvest. These institutions are barred from processing any transactions involving accounts linked to the defendants.
The loan was initially granted to General Hydrocarbons for the acquisition of oil block OML 120 but has been allegedly misused, with funds reportedly diverted to finance luxury assets, including private jets and real estate. The court has ordered the disclosure of balances in the defendants’ accounts and required companies involved in the operation of the oil block to provide comprehensive records of production and revenue.
This court ruling is expected to have profound implications on the Nigerian financial sector, particularly in terms of corporate governance, transparency, and the enforcement of financial agreements. The case continues to unfold, and further hearings will determine the next steps in the resolution of the dispute
