A Federal High Court has issued Mareva injunctions freezing assets and accounts linked to General Hydrocarbons Limited, its affiliates, and media mogul Nduka Obaigbena over an alleged $225.8 million debt. The court’s decision follows a legal battle initiated by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, both subsidiaries of FBN Holdings Plc, seeking to recover outstanding loan facilities.
According to court documents, General Hydrocarbons, an oil and gas company owned by Obaigbena, defaulted on the loan repayment as of September 30, 2024. The company, which operates Oil Mining Lease (OML) 120, is now subject to severe financial restrictions.
The Mareva injunctions restrain major commercial banks, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank, from releasing funds or facilitating transactions involving the defendants. Digital platforms such as Paystack and Piggyvest were also directed to freeze accounts associated with the embattled company and its affiliates.
The court order also requires companies involved in oil block OML 120 operations to submit production and revenue records, with proceeds diverted to the plaintiffs’ account pending further hearings.
Allegations of fund diversion include misuse of the loans for personal expenditures, such as luxury real estate acquisitions and private jet operations. The financial institution sought court intervention to prevent the defendants from depleting assets before a final ruling.
The legal action against General Hydrocarbons and Obaigbena could have broad implications for corporate governance and financial oversight in Nigeria. Market analysts noted that the development immediately impacted FBN Holdings’ stock, which fell 1.27% to close at N31.05 on Thursday.
Legal experts suggest that the court’s decision to impose a Mareva injunction indicates the severity of the allegations and the need to prevent asset dissipation. The case is ongoing, and further hearings are expected to clarify whether the frozen assets will be liquidated to settle the outstanding debt.
AT Reporter
