A Federal High Court has taken decisive action to freeze accounts and assets tied to General Hydrocarbons Limited, its affiliates, and high-profile individuals, including Nduka Obaigbena, a media mogul and founder of ThisDay Newspapers and Arise TV.
The move comes amidst allegations of unpaid loans amounting to $225.8 million owed to First Bank of Nigeria Ltd and FBNQuest Trustees Ltd.
The loans, reportedly granted for oil block acquisitions, are claimed to have been diverted to personal expenses, including luxury properties and private jet operations. The court’s orders, known as Mareva injunctions, target General Hydrocarbons and its linked entities, including corporate names such as GHL 121 Ltd and CESL Oyo Production. Prominent individuals associated with the accounts, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, are also under scrutiny.
The injunction mandates all major financial institutions and fintech platforms in Nigeria, including Zenith Bank, GTBank, Access Bank, Flutterwave, and Paystack, to freeze accounts tied to the defendants and disclose balances along with certified account statements within seven days.
The court also instructed oil companies operating block OML 120, where General Hydrocarbons is a key player, to submit production and revenue records while directing proceeds to the plaintiffs’ accounts.
The legal action, sparked by alleged misuse of secured loans, also restrains the defendants from transferring or dissipating assets such as crude oil stocks, shares, insurance policies, and other receivables. Directors of General Hydrocarbons are specifically prohibited from disposing of personal properties within Nigeria, ensuring resources remain intact to address the pending debt.
The loans in question, as of September 30, 2024, had escalated to over $225 million. The plaintiffs argue that the funds were intended for oil block operations but were diverted for personal luxury. With the injunction now in place, the court aims to safeguard the assets while the legal dispute over the outstanding loans unfolds.
