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Nduka Obaigbena: Court Freezes General Hydrocarbons’ Accounts Over $225.8m Debt To First Bank
A Federal High Court has issued a series of orders, including Mareva injunctions, to freeze assets and accounts linked to General Hydrocarbons Limited, its affiliates, and prominent individuals, including media mogul Nduka Obaigbena.
The court’s decision follows allegations of unpaid loans totaling $225.8 million, owed to a financial institution.
This is contained in a court document seen by Nairametrics detailing the prayers of the plaintiffs, First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, both subsidiaries of FBN Holdings Plc, a publicly listed financial services company in Nigeria.
General Hydrocarbons, an oil and gas company, is owned by Nduka Obaigbena, the publisher and founder of ThisDay Newspapers and Arise TV.
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.
The injunction restrains all major financial institutions in Nigeria including 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.
What the court documents reveal
The Federal High Court issued a series of freezing orders, known as Mareva injunctions, against General Hydrocarbons Limited, its directors, and affiliated entities, including Nduka Obaigbena, over an alleged debt of $225.8 million.
The court directed all major commercial banks and financial institutions in Nigeria to block the defendants’ accounts and restrict access to funds or assets up to the claim amount, pending further legal proceedings.
The injunctions restrain banks like GTBank, Access Bank, Zenith Bank, First Bank, and fintech platforms such as Flutterwave, Paystack, and Piggyvest from releasing funds or handling assets linked to the defendants.
This includes accounts associated with key individuals like Efe Damilola Obaigbena and Olabisi Eka Obaigbena, as well as corporate entities such as GHL 121 Ltd, CESL Oyo Production, and other companies tied to the oil block operations.
“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, Flutterwave, 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,being the outstanding indebtedness on the GHL’s account with FirstBank as of 30 September 2024 in respect of the loan facilities granted to GHL by FirstBank pending the hearing and determination of the Motion on Notice for interlocutory injunction,” the court injunction partly reads.
The court also mandated the banks to disclose the exact balances in these accounts and provide certified statements of account within seven days.
Furthermore, it ordered companies involved in oil block OML 120 to submit records of production and revenue since operations began, with proceeds directed to the plaintiffs’ account.
In addition to freezing funds, the court issued interim injunctions preventing the defendants from transferring or dissipating assets, including crude oil stocks, insurance policies, shares, and other receivables.
This ensures that the defendants cannot deplete resources that may be used to settle the outstanding debt.
The Directors of General Hydrocarbons were also specifically restrained from disposing of their personal assets, whether movable or immovable, within Nigeria.
Why the Mareva injunction
According to Nairametrics findings, the legal action stems from loans allegedly granted to the first defendant, General Hydrocarbons, by the plaintiff’s bank.
According to the Plaintiff, the loans remain unpaid as of September 30, 2024.
The loan was reportedly secured using various assets, including crude oil stocks, insurance policies, and receivables.
These funds, which were initially intended for oil block acquisition, are claimed to have been misused for personal expenditures.
Among other accusations, the defendants are said to have diverted funds to finance luxury properties and private jet operations.
With the outstanding sum now exceeding $225 million, the plaintiffs sought court intervention to preserve assets pending the determination of the case.
What’s Next?
Sources revealed to Nairametrics that the case is ongoing, and further hearings will determine the outcome of a case that is likely to reverberate through the Nigerian financial services sector.
The outcome of this case could have far-reaching implications for corporate governance and the financial stability of the affected entities.
FBNH’s share price fell 1.27% to close at N31.05 on Thursday, January 2024.
This is a developing story, and more updates are expected as legal proceedings continue….
News
Portable Confronts Odunlade Adekola Over Viral Video With Babymama, Ashabi
Controversial Nigerian musician, Portable, has confronted famous Nollywood actor, Odunlade Adekola, following his viral video with actress Ashabi Simple.
Recall that Portable’s fourth baby mama, Ashabi, was captured in a viral video hugging Odunlade while he playfully asked if she had taken permission from Portable about the hug.
In the trending clip shared by the actor on Instagram, he jokingly said, “Please, for God’s sake, hope you have taken permission from Portable before hugging me? Please go and inform him, 0oo.”
Responding to the video, Portable, who feels offended by the actor’s comment, took to his direct messages to question the motive behind the statement.
Portable wrote in Pidgin: “Wetin you talk inside that video with Ashabi Simple? Please, I respect my home and I no dey use am do movie. Why you go talk say she tell me before coming? Shey una no dey collect money for her hand ni?”
“But why everybody dey talk say I get wahala? Make una dey talk good about me. Me self, I dey loyal, o. Loyalty pass juju.”
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‘Misbehave Again, No Mercy Next Time,’ Burna Boy To Speed Darlington After Release
Grammy-winning artiste Burna Boy has seemingly issued a cautionary message to Speed Darlington following his recent release from prison.
Darlington was arrested on November 27 while performing at a show in Owerri, Imo state. He was accused of cyberstalking Burna Boy, the Grammy-winning artiste.
Darlington had taunted Burna Boy over his affiliation with the embattled US rapper Sean ‘Diddy’ Combs’ who is facing multiple charges for sexual exploitation and human trafficking.
He asked Burna Boy to explain how he won the Grammy award for his album ‘Twice As Tall’ — a project executive produced by Diddy. He claimed there was a sexual relationship between the duo.
After two months in the Kuje prison, Darlington was released on Tuesday.
In a now-deleted post via his Instagram story, Burna Boy warned that there would be no leniency if such a situation arose.
“If you like misbehave again, you will go back to where you come from! And this time around, there will be no mercy! Don’t mess with ODG,” he wrote, although he did not mention names.
The police in Abuja first detained Darlington in October 2024 after a formal complaint filed by Burna Boy.
He was, however, released on bail after five days in police detention.
News
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The wife of former Deputy Senate President, Senator Ike Ekweremadu, Mrs. Beatrice Ekweremadu, has returned to Nigeria after being released from a UK prison.
Mrs Ekweremadu reportedly arrived in Nigeria on Tuesday.
It will be recalled that Senator Ike Ekweremadu, his wife Beatrice, and a medical doctor, Dr. Obinna Obeta, were convicted in the United Kingdom for their involvement in a controversial organ harvesting case.
The UK court sentenced Senator Ekweremadu to 10 years in prison, while Mrs. Ekweremadu received a six-year sentence.
Recall that Senator Ekweremadu, the wife and one Dr Obinna Obeta were sentenced to prison by a UK court for their involvement in organ harvesting.
The UK court sentenced Senator Ekweremadu to 10 years in prison, while Mrs. Ekweremadu received a six-year sentence.
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