The Federal High Court in Ikoyi, Lagos, has ordered the freezing of accounts belonging to Nduka Obaigbena, the founder and publisher of ThisDay Newspapers and Arise TV. This action comes in response to a staggering debt of $225.8 million owed to First Bank of Nigeria.
The court’s ruling prohibits all commercial banks across Nigeria from releasing or handling any funds associated with Obaigbena and his company, General Hydrocarbons Limited. This includes accounts held by Obaigbena’s family members, Efe Damilola Obaigbena and Olabisi Eka Obaigbena. The injunction aims to safeguard the plaintiffs, First Bank and its subsidiary, FBNQuest Trustees, as they pursue repayment of the substantial loan.
The controversy stems from a series of unpaid loans linked to General Hydrocarbons, an oil and gas company that operates OML 120, an oil-producing block in Nigeria. The loans, which reportedly amount to $225,802,379.69 as of September 30, 2024, were initially issued to Atlantic Energy Drilling Concepts Limited in 2011 to fund oil drilling operations. However, after Atlantic Energy defaulted on its repayments, First Bank faced significant financial challenges.
Obaigbena has claimed that the loan agreements were mishandled and that First Bank’s actions have hindered General Hydrocarbons’ ability to operate effectively. He has alleged that the bank has not fulfilled its obligations under their agreements, contributing to financial losses for his company.
The court has scheduled a follow-up hearing for January 20, 2025, where further developments in this case will be addressed. In the meantime, the freeze on Obaigbena’s accounts remains in effect as both parties prepare for what could be a protracted legal battle over these significant financial issues. This case highlights ongoing challenges within Nigeria’s banking sector and raises questions about lending practices and accountability among financial institutions. As this story unfolds, many will be watching closely to see how it impacts not only Obaigbena and his businesses but also the broader landscape of Nigeria’s financial system.
