Nduka Obaigbena First Bank Debt: Is Arise TV In Trouble?

The legal battle between Nduka Obaigbena, Chairman of THISDAY Media Group and Arise News Channel, and First Bank of Nigeria Limited has drawn significant attention, due to its high-profile nature and the financial stakes involved. The dispute stems from a $225.8 million debt claim linked to General Hydrocarbons Limited (GHL), an oil and gas firm where Obaigbena and his family are key stakeholders.

Origin of the Debt

In 2011, First Bank extended a $490 million loan to Atlantic Energy Drilling Concepts Limited, led by businessman Jide Omokore, to fund oil exploration projects. The loan defaulted, prompting First Bank to write off N126 billion as a non-performing loan by 2019.  

Following this, Nduka Obaigbena’s company, General Hydrocarbons Limited, became involved in financing oil production at the OML 120 oil field, with profits intended to help the bank recover from previous losses. Obaigbena later accused First Bank of breaching their agreements, which he claims caused financial and operational setbacks for GHL.  

Court Orders and Asset Freezing

On December 30, 2024, Justice D.I. Dipeolu of the Federal High Court in Lagos ordered Nigerian commercial banks to freeze the accounts and assets linked to Obaigbena, his associates, and GHL.  

Key Court Directives:

– Banks must bar dealings with funds linked to Obaigbena, his associates, and GHL.  

– Banks were instructed to disclose account balances for these entities within seven days.  

– Oil companies lifting from OML 120 were directed to provide production records.  

The court order followed an application by First Bank and FBN Quest Trustees Limited, who sought to secure repayment for General Hydrocarbons’ outstanding debt of $225.8 million as of September 30, 2024.

Claims of Bad Faith and Counteraccusations

Obaigbena has accused First Bank of acting in bad faith by allegedly delaying payments and attempting to seize control of OML 120. He asserted that the company had no choice but to pursue legal and arbitration avenues to protect its interests.  

In a letter to Central Bank Governor Yemi Cardoso, Obaigbena criticized First Bank for its handling of the Atlantic Energy loan, labeling the transactions as reckless and poorly secured. He maintained that his company was unfairly targeted despite playing a role in helping the bank recover.  

Implications for Obaigbena’s Assets

Although the court order specifically targets GHL and related entities, the financial and reputational risks for Obaigbena’s media ventures, including Arise TV and THISDAY could be significant.  

In the past, there have been cases of delayed salary payments to staff of This Day Media and Arise News London. In 2022, members of This Day lamented 5 months salary delay.

Potential Impacts:

1. Operational Disruptions:

Restricted access to funds could affect Arise TV and THISDAY Media’s operational capacity, including payroll and content production.  

2. Reputational Risks:

The negative publicity surrounding the case may impact stakeholder confidence and audience perception.  

3. Resource Diversion:

Legal battles and asset recovery processes could consume financial and managerial resources, potentially impacting media strategy and focus.  

Despite these concerns, no direct evidence has surfaced linking Obaigbena’s financial challenges to his media operations or accusations of political bias in content coverage.  

Broader Context and Industry Implications

This legal saga underscores the challenges of corporate financing, oil production partnerships, and the intricacies of debt recovery in Nigeria. It also highlights the judiciary’s role in safeguarding creditor rights while balancing business interests.  

As the case progresses, stakeholders will closely monitor the outcome, which could reshape the operational dynamics of GHL and Obaigbena’s media empire. The next court hearing, scheduled for January 20, 2025, will be pivotal in determining the future trajectory of the dispute.  

The dispute between Nduka Obaigbena and First Bank is a complex mix of legal, financial, and operational challenges. With significant ramifications for business operations and media freedom, the case remains a focal point for both industry observers and the general public. The resolution will be crucial for Obaigbena, his companies, and Nigeria’s media landscape.