A Federal High Court has vacated its Mareva injunction that previously froze $225.8 million in assets and accounts linked to General Hydrocarbons Limited (GHL), its affiliates, and key figures, including media mogul Nduka Obaigbena, founder of ThisDay Newspapers and Arise TV.
Justice D.I. Dipeolu issued the ruling on January 29, 2025, after GHL’s legal team challenged the asset-freezing order, which had been sought by First Bank of Nigeria Limited and FBN Quest Trustees Limited over alleged unpaid loans. However, the court dismissed GHL’s request to strike out First Bank’s lawsuit, affirming the bank’s right to seek legal remedies.
Background: The $225.8 Million Loan Dispute
GHL, an oil and gas company, operates OML 120, an oil-producing block in Nigeria. The dispute revolves around an unpaid loan facility of $225.8 million, which First Bank claims is due.
Initially, the court granted an ex parte Mareva injunction on December 30, 2024, freezing GHL’s assets across major Nigerian banks and fintech platforms, including:
•GTBank, Access Bank, Zenith Bank, First Bank, Citibank, Fidelity Bank, and others
•Flutterwave, Paystack, Piggyvest, Momo Payment Service Bank, Opay, PalmPay
Additionally, the freeze extended to accounts linked to Efe Damilola Obaigbena, Olabisi Eka Obaigbena, and corporate entities such as GHL 121 Ltd and CESL Oyo Production.
GHL Challenges the Freeze Order
Following the asset freeze, GHL’s lawyer, Ebun Awosika, filed a motion on notice to overturn the injunction, arguing that:
•First Bank had been previously restrained by another court from taking enforcement actions against GHL pending arbitration.
•The court order issued on December 12, 2024, by Justice Allagoa, had barred First Bank from calling in the loan or enforcing security on OML 120.
•First Bank failed to disclose this earlier court order when seeking the Mareva injunction, which GHL called an abuse of court process.
Court’s Ruling: Mareva Order Lifted, but First Bank’s Suit Stands
After reviewing the arguments, Justice Dipeolu ruled that:
1.The Mareva injunction granted on December 30, 2024, is set aside in line with existing orders requiring the dispute to go through arbitration.
2.First Bank’s lawsuit is not an abuse of court process, rejecting GHL’s motion to strike it out.
3.First Bank failed to attach the December 12, 2024, court order to its application for the asset freeze, even though it had disclosed its existence.
4.GHL remains restricted from taking any action that interferes with the arbitration process.
Despite vacating the asset freeze, the court affirmed that First Bank’s legal action was valid and that the bank had a legal right to seek repayment of its loan.
Next Steps: February 19 Court Date and Industry Ramifications
The case has been adjourned to February 19, 2025, to allow all parties to present their arguments on the substantive suit.
Sources suggest the ruling could impact Nigeria’s financial services sector, particularly regarding:
•How banks secure and enforce debt repayments.
•The role of arbitration in major corporate loan disputes.
•The extent to which Mareva injunctions can be used to freeze assets in high-profile cases.
With $225.8 million at stake, this case is far from over, and its outcome could shape corporate governance and financial regulations in Nigeria.
