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Nduka Obaigbena Versus First Bank of Nigeria FBN: Court Orders Nigerian Banks to Freeze Nduka Obaigbena’s Accounts Over $718 Million Debt
KEY TAKEAWAYS:
- Court Freezes Obaigbena’s Assets: The Lagos Division of the Federal High Court has ordered all Nigerian banks to freeze at least $225 million in assets linked to media executive Nduka Obaigbena and his family over a $718 million debt owed to First Bank of Nigeria.
- Legal Dispute Over Debt: Obaigbena’s legal team has challenged First Bank’s actions, claiming the bank violated a previous injunction that prohibited any enforcement of the debt. The family argues that the bank bypassed this ruling to obtain a new Mareva injunction.
- Obaigbena’s Role in First Bank’s Recovery: In 2021, Obaigbena played a key role in helping First Bank recover from a major financial loss by leveraging assets from the OML 120 oil block, turning a N161 billion loss into a N151 billion profit.
- Ongoing Legal and Financial Tensions: The legal battle between Obaigbena and First Bank is far from over, with both sides preparing for further court actions and arbitration to resolve the dispute over the massive debt.
Nduka Obaigbena Versus First Bank of Nigeria FBN
In a recent court ruling, all banks operating in Nigeria have been directed to freeze the assets and blacklist media mogul Nduka Obaigbena, alongside his family members, due to their alleged debt of $718 million to First Bank of Nigeria.
This decision comes after a Mareva injunction was issued by the Lagos Division of the Federal High Court on December 30, 2024, under case FHC/L/CS/2378/2024.
As part of the ruling, $225 million held in various bank accounts belonging to the Obaigbena family has already been frozen.
The court’s order also prevents Obaigbena from moving any assets out of the court’s jurisdiction.
The debt stems from the use of their company, General Hydrocarbons Limited, to take on a massive loan from the First Bank of Nigeria.
The financial freeze applies to all transactions linked to the Obaigbenas and associated businesses.
This includes entities tied to the family’s operations, as well as any dealings related to their oil services company.
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Legal Back-and-Forth Over $718 Million Debt
Despite the court’s clear order, a letter from Obaigbena’s lawyers has raised concerns regarding the handling of the case.
In a communication dated January 9, 2025, the Obaigbena legal team argued that First Bank was overstepping by attempting to place blame for $718 million in loans linked to Atlantic Energy.
The lawyers also warned the bank about possible legal consequences for seeking a new ruling without acknowledging a prior judgment that barred further action.
The previous judgment, delivered by Justice Lewis Allagoa on December 12, 2024, had already restricted First Bank from taking any enforcement action on the debts while arbitration proceedings were ongoing.
The Obaigbena lawyers accused the bank of pursuing the Mareva order in bad faith, failing to disclose the earlier decision to the court.
Obaigbena Defends His Record with First Bank
In a separate appeal to the Central Bank of Nigeria (CBN) Governor Yemi Cardoso, Mr. Obaigbena emphasized his critical role in First Bank’s recovery.
In 2021, he helped stabilize the bank’s finances, rescuing it from an N161 billion loss to an N151 billion profit by leveraging assets from the OML 120 oil block.
Obaigbena expressed frustration in his November 7, 2024 letter, stating that the family was forced to resort to legal action in order to protect their rights amidst First Bank’s continued legal efforts.
Obaigbena’s General Hydrocarbons Expounds on Legal Conflict with First Bank of Nigeria
In a detailed update on its ongoing legal dispute with First Bank of Nigeria, General Hydrocarbons, led by chairman Nduka Obaigbena, revealed that the case is currently under court and arbitration proceedings.
This statement, issued on a Friday, assured stakeholders that the company had secured a court order to protect its operations while the case is resolved.
“We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination,” Obaigbena confirmed.
The energy firm expressed confidence in the country’s legal system, hoping for a favorable outcome.
Background to the Dispute
General Hydrocarbons is in a complex legal battle with First Bank over loans obtained by the energy company.
According to the bank, the company has failed to meet repayment deadlines for several loans, leading to the current dispute.
On December 30, 2024, the bank, along with FBN Quest Limited, won a court order from the Federal High Court in Ikoyi, Lagos.
This order blocked the accounts and assets of the media mogul, his company, and his daughters, who hold director positions at General Hydrocarbons, in all commercial banks in Nigeria.
Justice Deinde Dipeolu granted this order, which will remain in effect until the hearing and resolution of an interlocutory injunction.
First Bank and FBN Quest are seeking a total of $225.8 million in unpaid debts, claiming this is the amount General Hydrocarbons owes as of September 30, 2024.
General Hydrocarbons’ Response
In response, General Hydrocarbons has called First Bank’s actions an “abuse of court process.”
The company argues that the bank disregarded a previous court order issued by Justice A. Lewis-Allagoa on December 12, 2024, which prohibited the bank from hindering General Hydrocarbons’ access to necessary funds for its oil and mining operations, particularly for OML 120.
The two parties had previously agreed to a loan arrangement, with First Bank providing funds for the operation of OML 120.
The agreement stipulated that profits would be shared equally.
However, General Hydrocarbons has claimed that First Bank violated key terms of the loan, particularly by failing to disburse the funds on time.
General Hydrocarbons also obtained an injunction preventing First Bank from taking any actions that could harm its operations, including blocking assets or enforcing security for the loans.
The Way Forward
General Hydrocarbons continues to maintain that First Bank is ignoring court rulings and misleading the public about the situation.
The company has urged its partners to stay calm and trust that the matter will be resolved through legal channels, whether by court proceedings, arbitration, or mediation.
The company further emphasized its role in rescuing First Bank from a difficult financial position, stating, “We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby with the bath water.”
As the dispute continues, all eyes remain on the court proceedings, with both sides awaiting a resolution that could have significant implications for General Hydrocarbons’s future and its relationship with First Bank of Nigeria.
Nduka Obaigbena: A Legacy of Media Innovation and Leadership
Nduka Obaigbena stands as a pillar in Nigeria’s media landscape and beyond.
Born in Ibadan, Nigeria, on July 14, 1959, Obaigbena hails from the royal family of Owa Kingdom in Delta State.
His journey to prominence in the media began early, shaped by a strong academic background and a clear drive for success.
Education and Early Life
Obaigbena’s academic path started at Edo College in Benin City before continuing at the University of Benin.
His passion for business led him to the University of the Witwatersrand in Johannesburg, where he completed his Graduate School of Business studies.
Additionally, he attended the University of Cape Town, where he undertook an Advanced Management Programme.
Media Career: A Visionary in Journalism
In 1995, Obaigbena made his mark by founding ThisDay, a prominent Nigerian newspaper.
This publication quickly became a key source of news and analysis, shaping public opinion across the nation.
His dedication to recognizing excellence led to the founding of the ThisDay Awards in 2000, an annual event that honors remarkable contributions to Nigerian society in various sectors including politics, global business, and education.
Arise News: Revolutionizing Global News
In 2013, Obaigbena expanded his influence further with the launch of Arise News, an international TV news channel focused on African stories.
The channel, broadcast across the globe, serves as a platform for African narratives and has built bases in key global cities, including London, New York, Johannesburg, Abuja, and Lagos.
The channel’s reach was expanded via partnerships with satellite providers like Globecast, ensuring a broad viewership.
Cultural Impact: Music and Fashion Events
Obaigbena’s impact extends beyond journalism and television.
In 2006, he founded the ThisDay Music and Fashion Festival, which brought together global music icons such as Beyoncé, Jay Z, Rihanna, and Alicia Keys.
The event, which attracted global attention, showcased his ability to blend culture and media seamlessly.
He also launched Arise Magazine in 2008 and established the Arise Fashion Week, a key event in the fashion calendar.
These initiatives have highlighted African talent on the global stage, with shows at iconic venues such as the Royal Albert Hall in London and the Lincoln Centre in New York.
Leadership in Journalism and Business
Obaigbena’s leadership extends to various positions in media associations.
He serves as Chairman of the Newspaper Proprietors’ Association of Nigeria and the Nigerian Press Organisation.
His contributions to journalism have earned him a reputation as a key figure in shaping Nigeria’s media landscape.
Political Involvement and International Recognition
A man of influence in both media and politics, Obaigbena was a Senate candidate in 1991 and participated as a member of the Constitutional Conference in 1994.
His leadership also extends to the global stage, where he frequently participates in the World Economic Forum and has served on the Nominating Committee for the World Economic Forum’s Young Global Leaders.
In 2022, Obaigbena was honored with the Commander of the Order of the Niger (CON) by Nigerian President Muhammadu Buhari, a recognition of his significant contributions to the country.
Challenges and Controversy
Despite his achievements, Obaigbena’s career has not been without controversy.
He faced legal challenges, including an inquiry into the spending of a large fund, which impacted his operations and led to complaints from staff regarding delayed payments.
Nonetheless, he managed to address these issues and continue with his ventures.
Legacy
Nduka Obaigbena’s journey from a visionary media entrepreneur to an international influencer underscores his lasting legacy.
His leadership in shaping both the Nigerian media landscape and global cultural initiatives has left an indelible mark on the industry.
Through ThisDay and Arise News, Obaigbena has played a pivotal role in telling African stories to the world, positioning himself as one of Nigeria’s foremost media pioneers.
Conclusion
The dispute between the Obaigbena family and First Bank underscores the complexities of financial debt recovery and the intricate relationships between banks and media moguls in Nigeria.
With the court’s recent order and the ongoing legal drama, the case is poised to have significant implications for both parties involved.
