In a significant legal development, the Federal High Court in Lagos has issued a series of orders to freeze the assets and bank accounts of General Hydrocarbons Limited, an oil and gas company owned by media mogul Nduka Obaigbena. This action stems from allegations of unpaid loans totaling $225.8 million, owed to First Bank of Nigeria Limited and FBNQuest Trustees Limited, both subsidiaries of FBN Holdings Plc.
Background of the Case
General Hydrocarbons Limited, under the leadership of Nduka Obaigbena—renowned publisher of ThisDay Newspapers and founder of Arise TV—has been implicated in a financial dispute concerning substantial unpaid loans. The plaintiffs, First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, allege that as of September 30, 2024, the company owes $225,802,379.69 in outstanding debt. These loans were reportedly secured using various assets, including crude oil stocks, insurance policies, and receivables.
Court Orders and Injunctions
In response to the plaintiffs’ application, Justice Deinde Dipeolu granted a series of Mareva injunctions—freezing orders designed to prevent the dissipation of assets during legal proceedings. The court’s directives include:
Freezing of Bank Accounts:
All major commercial banks and financial institutions in Nigeria, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank, as well as digital platforms like Flutterwave, Paystack, and Piggyvest, are restrained from releasing or dealing with any funds or assets associated with General Hydrocarbons Limited and its affiliates, up to the claimed amount.
Disclosure of Account Balances:
The court mandated these financial institutions to disclose the exact balances in the defendants’ accounts and provide certified statements within seven days, ensuring transparency in the company’s financial dealings.
Restriction on Asset Transfer:
Interim injunctions were issued, preventing the defendants, including directors Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena, from transferring or disposing of their personal or corporate assets within Nigeria. This encompasses both movable and immovable properties, aiming to preserve assets that could potentially be used to settle the outstanding debt.
Oil Production Records:
Companies involved in Oil Mining Lease (OML) 120 operations were ordered to submit records of production and revenue since operations began, with proceeds directed to the plaintiffs’ account. This measure seeks to ensure that revenues generated from oil production are accounted for and potentially used to offset the debt.
Implications and Next Steps
The court’s decision to freeze the assets of General Hydrocarbons Limited underscores the seriousness of the allegations and the judiciary’s commitment to ensuring financial accountability. The outcome of this case could have far-reaching implications for corporate governance and financial practices within Nigeria’s oil and gas sector.
As the legal proceedings continue, the defendants are expected to respond to the allegations and the court’s orders. The next hearing is scheduled for January 20, 2025, where further deliberations will take place to determine the course of action.
Conclusion
The freezing of General Hydrocarbons Limited’s assets marks a pivotal moment in Nigeria’s financial and legal landscape, highlighting the critical importance of transparency and accountability in corporate financial dealings. Stakeholders within the oil and gas industry, as well as the broader business community, will be closely monitoring the developments of this case, given its potential impact on corporate practices and financial regulations in the country.
