Court Freezes $225 Million In Assets Linked To General Hydrocarbons And Nduka Obaigbena

A Federal High Court has issued a series of freezing orders, including Mareva injunctions, targeting assets and accounts associated with General Hydrocarbons Limited, its affiliates, and key individuals such as media mogul Nduka Obaigbena.

The orders were granted in response to allegations of unpaid loans totaling million, owed to First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, subsidiaries of FBN Holdings Plc.

General Hydrocarbons Limited, an oil and gas company chaired by Obaigbena—publisher of ThisDay Newspapers and founder of Arise TV—is alleged to have defaulted on loan facilities provided for its operations, including its management of oil block OML 120.

The court mandated major financial institutions, including Guaranty Trust Bank, Access Bank, Zenith Bank, First Bank, and fintech platforms such as Flutterwave, Paystack, and Piggyvest, to freeze accounts and restrict access to funds linked to the defendants.

The injunction also applies to personal accounts tied to directors like Efe Damilola Obaigbena and Olabisi Eka Obaigbena, as well as corporate affiliates such as GHL 121 Ltd and CESL Oyo Production.

According to court documents, the Mareva injunction prevents the defendants from transferring or dissipating assets, including crude oil stocks, insurance policies, shares, and other receivables, while the legal dispute is resolved.

Key directives include:

• Asset Freeze: Financial institutions are prohibited from releasing funds or handling assets up to the sum of .69, the alleged outstanding loan balance as of September 30, 2024.
• Account Disclosures: Banks must provide certified statements of account and disclose balances within seven days.
• Production Records: Companies involved in oil block OML 120 are required to submit records of production and revenue, with proceeds directed to the plaintiffs’ account.
• Restriction on Personal Assets: General Hydrocarbons’ directors are barred from disposing of personal assets within Nigeria.

The plaintiffs allege that the loans, initially secured using assets such as crude oil stocks and insurance policies, were diverted for personal expenditures, including luxury properties and private jet operations.

The plaintiffs argue that the funds, intended for oil block acquisition and operations, were misused, leaving the company unable to meet its financial obligations.

The freezing orders aim to safeguard assets and prevent further dissipation pending the resolution of the case. The legal proceedings could have far-reaching implications for corporate governance and financial accountability within Nigeria’s oil and gas and financial services sectors.

The case is ongoing, and further hearings will determine its outcome. Meanwhile, the share price of FBN Holdings fell by 1.27% to close at N31.05 on Thursday, reflecting market sensitivity to the developments.

This is a developing story; updates are expected as the case progresses.