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A Federal High Court has frozen $225.8 million in assets and accounts linked to General Hydrocarbons Limited, its affiliates, and media mogul Nduka Obaigbena. The move comes after allegations of unpaid loans owed to First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, subsidiaries of FBN Holdings Plc.
Court Injunctions
The court issued Mareva injunctions, preventing General Hydrocarbons and its associated entities from transferring or dissipating assets while legal proceedings are ongoing. The loans, reportedly totaling $225,802,379.69 as of September 30, 2024, were allegedly misused for personal expenses, including luxury properties and private jet operations.
The freezing orders target multiple financial institutions, including Guaranty Trust Bank, Access Bank, Zenith Bank, and fintech platforms like Flutterwave and Paystack. The court also instructed these institutions to disclose account balances and provide certified statements within seven days.
Allegations Against General Hydrocarbons
General Hydrocarbons, owned by Nduka Obaigbena, operates oil block OML 120. The plaintiffs allege that the loan, intended for oil block acquisition, was diverted for personal use. Other named individuals, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, are also implicated in the case.
The court directed oil block operators to submit production and revenue records, with proceeds deposited into the plaintiffs’ accounts. Additionally, the directors of General Hydrocarbons were barred from disposing of their personal assets within Nigeria.
Implications and Next Steps
The ongoing legal battle has significant implications for corporate governance and financial stability in Nigeria. Shares of FBN Holdings fell by 1.27%, closing at N31.05 on Thursday, January 2024.
This is a developing story, and more updates are expected as the case progresses.
