Court blocks Obaigbena’s assets in banks over alleged debt

The ruling follows a lawsuit filed by First Bank of Nigeria Limited and FBNQuest Trustees Limited, which seeks to recover approximately N1.2 trillion in local currency.

The plaintiffs accused General Hydrocarbons Limited of defaulting on loan facilities, leaving an outstanding debt of $225.8 million as of September 30, 2024.

The court also directed all commercial banks to freeze assets up to the stated amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and General Hydrocarbons Limited.

The three individuals are directors and shareholders in General Hydrocarbons, an oil and gas company.

On December 27, 2024, First Bank and FBNQuest Trustees petitioned the court for orders concerning the $225.8 million debt, which they claim is the outstanding balance on General Hydrocarbons’ account with First Bank as of September 30, 2024.

A Mareva order issued on December 30, 2024, by Justice Deinde Dipeolu sought to prevent Nduka Obaigbena from transferring assets outside the court’s jurisdiction.

At least $225 million held in accounts associated with the Obaigbenas was frozen. The judge also ordered all Nigerian commercial banks to halt financial transactions involving the Obaigbenas and related businesses.

First Bank had previously filed a debt recovery suit against Nduka Obaigbena, his family members Efe Damilola Obaigbena and Olabisi Eka Obaigbena, and their company, General Hydrocarbons Limited, alleging they assumed debts of about $718 million.

On January 9, 2025, the Obaigbenas, through their lawyers at Abiodun Layonu & Co, contested the Mareva order. They argued that First Bank was attempting to hold them accountable for $718 million in loans tied to Atlantic Energy.

The lawyers warned of serious legal consequences for obtaining the order from another judge despite an earlier ruling by Justice Lewis Allagoa on December 12, 2024.

Justice Allagoa’s judgment had explicitly prohibited First Bank from enforcing any claims against the Obaigbenas pending the resolution of an ongoing arbitration between the parties.