Nigerian court orders banks to freeze accounts of Arise TV founder over $718 million debt

Published 8:40 PM ET, Sunday January 12, 2025

Lagos: The Federal High Court in Lagos has issued a Mareva injunction ordering all Nigerian banks to blacklist Nduka Obaigbena, the founder of Arise News and Chairman of THISDAY Media Group, alongside members of his family. The injunction, stemming from an alleged $718 million debt owed to First Bank of Nigeria, also freezes their assets within the court’s jurisdiction.

The December 30, 2024, Mareva order also sought to prevent Mr. Obaigbena from moving any assets linked to him from the jurisdiction of the Federal High Court. First Bank had filed a debt-recovery suit against Mr. Obaigbena and his family members, including Efe Damilola Obaigbena and Olabisi Eka Obaigbena, saying they used their oil servicing firm, General Hydrocarbons Limited, to assume debt of about $718 million.

At least $225 million had been frozen in bank accounts run by the Obaigbenas as part of the order, which was issued by Justice Deinde Dipeolu in suit FHC/L/CS/2378/2024.

The judge also said all banks licensed to do business in Nigeria should immediately seize all financial transactions to the Obaigbenas and laundry of businesses linked to them.

In a January 9, 2025, letter from their lawyers, Abiodun Layonu & Co., the Obaigbenas argued that First Bank was trying to force them to take responsibility for up to $718 million in delinquent loans against Atlantic Energy.

The lawyers warned First Bank of “grave legal implications” for going to another judge to obtain the Mareva order when a separate federal judge already had a previous injunction prohibiting any actions against the Obaigbenas over the dispute.

The lawyers cited a December 12, 2024, judgement by Justice Lewis Allagoa of the Lagos Division of the Federal High Court, which “unequivocally and emphatically restrained First Bank from taking any steps whatsoever to enforce any security, receivables, instrument, financial documents, or assets of our clients pending the hearing and determination of the ongoing arbitration proceeding between our client and the FBN.”

The firm said First Bank knew of the judgment before approaching another judge for an ex parte order without disclosing the prior judgment, which they suggested was unethical and illegal.

In a separate petition to CBN Governor Yemi Cardoso last year, Mr. Obaigbena said he helped save First Bank from imminent collapse in 2021 when he used the resources from the OML 120 oil block he secured under President Muhammadu Buhari to elevate the company’s fortunes from declaring a N161 billion loss to announcing N151 billion in profits for the year ending December 31, 2021.

“We have been left with no choice but to go to court and arbitration to preserve our fundamental rights and our rights under the agreements in the face of FBN’s attempts to clubber and bully us out of existence,” Mr. Obaigbena said in the November 7, 2024, complaint.