Court Freezes Nduka Obaigbena’s Accounts Amid $7.18 Million Debt Dispute with First Bank

A Federal High Court in Lagos has ordered the freezing of all accounts belonging to Nduka Obaigbena, publisher of ThisDay newspaper, across Nigerian banks. The court’s decision follows a protracted $7.18 million debt dispute between Obaigbena’s company, General Hydrocarbons Limited (GHL), and First Bank of Nigeria.

The order was issued by Justice Nicholas Oweibo in response to an ex parte application filed by First Bank, alleging that Obaigbena and GHL had failed to settle outstanding debts despite several attempts at resolution. The court also instructed all Nigerian banks to blacklist Obaigbena from conducting any financial transactions until the debt is cleared.

The dispute centers on a loan facility granted to General Hydrocarbons Limited, which the bank claims remains unpaid. Obaigbena, however, has described the freezing order as an “abuse of court process.” He contends that the matter is already being addressed in another court and accuses First Bank of using the judiciary to tarnish his reputation.

The businessman maintains that his company has made substantial payments towards the loan, insisting that the remaining balance is being disputed. “This freezing order is unjust and undermines the legal process. We will challenge it to ensure fairness,” Obaigbena stated.

The case has also drawn attention to the involvement of other high-profile individuals. Billionaire businessman Femi Otedola and other directors of General Hydrocarbons Limited have been named in the proceedings. A separate court order has restrained First Bank from taking steps to arrest or prosecute these individuals until further notice.

Legal experts have weighed in on the case, with some arguing that the freezing order may set a controversial precedent in debt recovery cases involving corporate entities. Others have emphasized the importance of adhering to due process and ensuring that all parties are fairly represented in court.

The financial implications of the ongoing dispute have raised concerns within the business community, given Obaigbena’s prominent role in Nigerian media and corporate circles. Industry analysts warn that prolonged legal battles could affect the operations of ThisDay newspaper and its sister platform, Arise News.

As the legal tussle continues, Obaigbena and GHL have vowed to exhaust all legal avenues to overturn the freezing order and resolve the dispute on favorable terms.