The Federal High Court in Lagos has ordered all commercial banks in Nigeria to freeze assets and accounts linked to Nduka Obaigbena, Chairman of THISDAY Media Group and Arise News Channel, over a $225.8 million debt claim. The court also barred dealings with funds and assets associated with Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited, where the three are directors.
The order followed an application by First Bank of Nigeria Limited and FBN Quest Trustees Limited on December 27, 2024. They sought the freezing of these assets to secure repayment of General Hydrocarbons’ outstanding debt, which allegedly arose from loan facilities granted by First Bank.
Background to the Loan
First Bank provided Atlantic Energy Drilling Concepts Limited, chaired by Jide Omokore, with a $490 million loan in 2011 to fund oil exploration. The loan later defaulted, and by 2019, First Bank had written off N126 billion as a non-performing loan.
In a letter to Central Bank of Nigeria Governor Yemi Cardoso, Nduka Obaigbena claimed that the loans to Atlantic Energy were reckless and lacked proper security, contributing to First Bank’s financial instability. He alleged that First Bank sought his help in 2020 to address these issues.
Obaigbena’s company, General Hydrocarbons, later signed agreements with First Bank to finance oil production on its awarded OML 120 oil field. Profits from the venture were to be shared equally, with proceeds helping the bank recover from past losses. However, he accused First Bank of breaching agreements, causing financial losses and operational setbacks for General Hydrocarbons.
Court Ruling
On December 30, 2024, Justice D.I. Dipeolu granted orders restraining commercial banks from releasing funds connected to Obaigbena, his associates, or General Hydrocarbons. The court also mandated banks to disclose account balances for the listed entities within seven days.
The case has been adjourned to January 20, 2025, for further hearing. Meanwhile, the court has directed companies involved in oil lifting from OML 120 to disclose production details since the field began operations.
Obaigbena has alleged bad faith from First Bank, accusing it of delaying payments and attempting to seize control of OML 120. “We have been left with no choice but to go to court and arbitration,” he stated, asserting his company’s rights under their agreements.
Supporters of Nigeria’s ruling party have frequently alleged that Mr Obaigbena’s media outlets, ThisDAY and Arise TV, provide a platform for opposition voices critical of the government. However, no evidence linking Obaigbena’s financial challenges to these claims has been presented.
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