A Federal High Court in Nigeria has issued Mareva injunctions freezing assets and accounts linked to General Hydrocarbons Limited, its affiliates, and media mogul Nduka Obaigbena. The court’s decision follows a legal battle initiated by First Bank of Nigeria Ltd and FBNQuest Trustees Ltd, both subsidiaries of FBN Holdings Plc, which are seeking to recover an outstanding loan facility worth $225.8 million.
The loan was allegedly defaulted on by General Hydrocarbons, an oil and gas company owned by Obaigbena, as of September 30, 2024. The company, which operates Oil Mining Lease (OML) 120, is now subject to severe financial restrictions, with the court’s ruling ensuring that its assets and accounts remain frozen during the ongoing legal process.
The Mareva injunctions issued by the court extend to several major commercial banks, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank. These banks are now prohibited from releasing funds or facilitating any transactions involving the defendants. Additionally, digital platforms such as Paystack and Piggyvest have been instructed to freeze any accounts associated with General Hydrocarbons and its affiliates.
“An order of Mareva injunction restraining all commercial banks in Nigeria… from releasing or dealing with any funds or assets due to the GHL up to the sum of $225,802,379.69,” the court order stated. The injunction also includes financial institutions like Fidelity Bank, Polaris Bank, and Stanbic IBTC Bank, further restricting the company’s financial operations in Nigeria.
Moreover, the court has directed companies involved in the operations of OML 120 to submit their production and revenue records. Any proceeds derived from the oil block are to be diverted to the plaintiffs’ account until further hearings are conducted. This ruling is part of the broader effort to secure repayment of the outstanding loan and prevent further depletion of assets.
The loan that General Hydrocarbons secured was reportedly backed by crude oil stocks, insurance policies, and receivables. However, the plaintiffs allege that these funds were misused for personal expenditures, including luxury real estate acquisitions and private jet operations. These allegations have sparked widespread concern about financial mismanagement and potential fraud.
Sources familiar with the case have revealed that the financial institutions involved sought the court’s intervention to prevent the defendants from depleting their assets before a final ruling could be made. The injunctions also extend to individual directors of General Hydrocarbons, barring them from selling or transferring personal assets within Nigeria. This measure is aimed at preventing the transfer of wealth while the case is ongoing.
