A Federal High Court has issued several orders, including Mareva injunctions, to freeze the assets and accounts linked to General Hydrocarbons Limited and its affiliates, as well as prominent individuals such as media executive Nduka Obaigbena. This legal action follows allegations that the company owes more than $225 million to a financial institution.
Justice Deinde Dipeolu issued the ruling in response to claims of unpaid loans totalling approximately $225.8 million owed to First Bank Nig. Ltd and FBN Quest Trustees Ltd. The court has prohibited all commercial banks from handling funds and assets tied to directors and shareholders of General Hydrocarbons Ltd, up to the specified amount.
The court has directed these banks to report the exact balances in the affected accounts and submit certified account statements within a week. General Hydrocarbons Ltd is identified as the operator of an oil-producing block, known as OML 120, within the country.
These injunctions were established to prevent General Hydrocarbons Limited and related parties from transferring or utilizing their assets while the legal matter concerning the unpaid loans is resolved. As of September 30, 2024, the total loans from the plaintiff amount to $225,802,379.69.
The injunction applies to all major financial institutions in Nigeria, including Guaranty Trust Bank, Access Bank, Zenith Bank, and First Bank of Nigeria, as well as digital payment platforms like Flutterwave, Paystack, and Piggyvest, restricting them from releasing funds or managing any accounts associated with the defendants.
Key points from the court’s documentation include:
– The Federal High Court has issued freezing orders, or Mareva injunctions, against General Hydrocarbons Limited, its directors, and related parties, including Nduka Obaigbena, due to an alleged debt of $225.8 million.
– Major commercial banks and financial institutions in Nigeria have been instructed to restrict access to the defendants’ accounts and assets, pending further legal proceedings.
– The injunction prevents banks such as GTBank, Access Bank, Zenith Bank, and First Bank, as well as fintech companies like Flutterwave, Paystack, and Piggyvest, from processing transactions or managing assets related to the defendants.
– This order extends to accounts belonging to key individuals such as Efe Damilola Obaigbena and Olabisi Eka Obaigbena, along with corporate entities like GHL 121 Ltd and CESL Oyo Production, linked to oil block operations.
– The court has mandated these banks to provide current account balances and certified statements within one week.
– Additionally, companies involved with the OML 120 oil block are required to disclose production and revenue records since operations began, directing the proceeds to the plaintiffs’ account.
– The court has also issued temporary injunctions to prevent the defendants from transferring or dissipating assets, including crude oil stocks, insurance policies, shares, and other receivables, ensuring that resources for settling the debt remain secure.
– Directors of General Hydrocarbons are specifically prohibited from selling their assets, whether movable or immovable, in Nigeria.
The court has ordered companies related to OML 120 to report on the volume of products lifted and submit production and revenue records since the start of operations, directing proceeds to the directors’ accounts. The directors are also restricted from transferring or dissipating any company assets, including crude stocks, insurance policies, various shares, and pledged contracts.
Furthermore, the directors are barred from disposing of their personal assets within Nigeria until the resolution of the main lawsuit.
However, General Hydrocarbons Limited in response to this urged all Nigerian commercial banks not to freeze its assets and accounts, following a December 30, 2024, order from Justice Deinde Dipeolu of the Federal High Court in Lagos State.
Further hearing on this case is scheduled for January 20, 2025.
