AFRIFF Owner Chioma Ude Faces Major Crisis as Court Permits Fidelity Bank to Initiate Bankruptcy Proceedings

A Federal High Court in Lagos State has granted permission for creditors to initiate bankruptcy proceedings against prominent billionaire businesswoman Chioma Ude concerning an alleged debt of ₦1,700,000,000 (One Billion, Seven Hundred Million Naira).

Niyi Odunmorayo, Media Relations Executive at Olisa Agbakoba Legal (OAL), announced on Monday that this decision was made on April 30, 2024, after the court reviewed arguments from the creditor’s counsel, OAL Legal.

Justice Allagoa, who granted the request for bankruptcy proceedings, stated that the creditors had presented sufficient preliminary evidence to substantiate their claims against Ude.

Bankruptcy proceedings are considered a highly assertive method for debt recovery. If the court declares Ude bankrupt, it would significantly restrict her ability to conduct business activities both in Nigeria and internationally.

A bankruptcy declaration would require Ude to reveal all her assets and liabilities, with the possibility of her properties being sold to pay off the debts. Ude is a prominent figure in the Nigerian business community, with investments in various sectors such as real estate and entertainment.

This development has caused a stir in the business community, with many expressing surprise at the news.

The court proceedings will resume on June 17, 2024, when Ude or her legal representatives are expected to present their defense. The outcome of these proceedings could have major implications for Ude’s business ventures and her standing in the business world.