Media Mogul Nduka Obaigbena Blacklisted: Court Orders Banks to Freeze $225M Over $718M Debt Scandal"

In a dramatic turn of events, the Lagos Division of the Federal High Court has ordered all Nigerian banks to blacklist media tycoon Nduka Obaigbena and members of his family over an alleged $718 million debt owed to First Bank of Nigeria. This unprecedented move, issued on December 30, 2024, has not only frozen $225 million in accounts linked to the Obaigbenas but also banned all financial transactions associated with them.

The Debt That Sparked the Controversy

At the center of the legal storm is a debt-recovery suit filed by First Bank, accusing Mr. Obaigbena and his family of leveraging their oil servicing company, General Hydrocarbons Limited, to secure massive loans now in default. The Mareva order, issued by Justice Deinde Dipeolu, mandates that the Obaigbenas must not move any assets out of the Federal High Court’s jurisdiction, escalating the stakes in this high-profile case.

A Legal Tug-of-War

The Obaigbenas, however, are not going down without a fight. Through their lawyers, Abiodun Layonu & Co., they have labeled First Bank’s actions as unethical and illegal, citing a December 12, 2024, judgment by Justice Lewis Allagoa. That judgment, they claim, explicitly restrained First Bank from taking any action against the family pending ongoing arbitration proceedings.

The lawyers accused First Bank of suppressing this prior ruling when seeking the ex-parte Mareva order from Justice Dipeolu, a move they argue could lead to "grave legal implications."

First Bank Silent Amid Allegations

First Bank has yet to respond publicly to the accusations of judicial overreach. Neither the bank’s spokesperson nor its chairman, Femi Otedola, returned requests for comments.

Obaigbena’s Defense: A History of Financial Rescue

Mr. Obaigbena has maintained that his dealings with First Bank have been above board. In a separate petition to Central Bank Governor Yemi Cardoso, he claimed to have played a key role in rescuing the bank from financial collapse in 2021. He alleged that resources from an oil block he secured helped transform First Bank’s fortunes, turning a loss of N161 billion into a profit of N151 billion by year-end.

“We have been left with no choice but to go to court and arbitration to preserve our fundamental rights,” Mr. Obaigbena declared in a statement dated November 7, 2024.

What’s Next?

As the legal battle heats up, the implications of the Mareva order are monumental. The decision to blacklist one of Nigeria’s most prominent media executives and freeze substantial assets could send shockwaves through the financial and media sectors. Meanwhile, both sides prepare for a prolonged court and arbitration showdown, with billions of dollars—and reputations—on the line.

This unfolding saga paints a vivid picture of corporate disputes, legal strategy, and the high stakes of financial power struggles in Nigeria.