In a landmark ruling, the Federal High Court in Lagos has ordered Nigerian banks to freeze the accounts of Nduka Obaigbena, the founder of Arise News and Chairman of THISDAY Media Group, along with members of his family. The court’s Mareva injunction, issued on December 30, 2024, stems from a debt recovery suit filed by First Bank of Nigeria, which claims that Obaigbena owes an alleged $718 million.
A Case of Debt Recovery
The lawsuit accuses Obaigbena, his family members, and their oil servicing firm, General Hydrocarbons Limited, of defaulting on substantial loans. As a result, approximately $225 million has been frozen in accounts linked to the Obaigbenas. Nigerian banks have been instructed to block all financial transactions involving Obaigbena, his family, or their associated businesses.
Legal Pushback
Obaigbena’s legal team, represented by Abiodun Layonu & Co., has strongly contested the injunction, accusing First Bank of engaging in unethical practices. They claim that the bank disregarded a December 12, 2024, ruling by Justice Lewis Allagoa, which restrained First Bank from enforcing claims against Obaigbena pending ongoing arbitration.
The lawyers argue that the Mareva injunction violates due process and undermines the earlier court ruling. In a letter to the court, they described First Bank’s actions as “forum shopping” and warned of “grave legal implications.”
A History of Financial Turmoil
This is not the first time Nduka Obaigbena has faced financial controversies. Known for his ventures in media and business, Obaigbena founded ThisDay newspaper in 1995 and launched Arise News in 2013, an international news channel focusing on African stories. However, Arise News has been plagued by operational challenges, including allegations of unpaid salaries and protests from staff.
In 2021, Obaigbena faced international scrutiny when he was disqualified from serving as a company director in the UK for seven years over financial mismanagement at Arise News.
Disputed Claims
Obaigbena contests First Bank’s narrative, arguing that the debt in question is tied to liabilities associated with Atlantic Energy, a separate entity. In a November 2024 petition to the Central Bank of Nigeria Governor Yemi Cardoso, he alleged that his contributions in 2021—using resources from oil block OML 120—helped stabilize First Bank during a financial crisis.
What’s Next?
As the legal battle unfolds, the case highlights the challenges of high-stakes debt recovery and the financial complexities surrounding Nigeria’s media and oil industries. For Nduka Obaigbena, this injunction represents another chapter in a storied career marked by ambition, controversy, and resilience.
