Court freezes N448m assets in Keystone Bank debt recovery suit
Add us on Google The Federal High Court in Lagos has ordered the freezing of assets and the sum of N448 million in a debt recovery suit filed by Keystone Bank Limited against five defendants. The trial judge, Chukwujekwu Aneke, granted the order on 26 March following an ex parte application by the applicant’s lawyer, Mofesomo Tayo-Oyetibo, a Senior Advocate of Nigeria (SAN). The defendants in the suit are Relic Resources Limited, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited. A certified true copy of the order shared with PREMIUM TIMES on Wednesday revealed that the court granted a Mareva injunction temporarily restraining the use of the money. The trial court restrained the defendants, whether acting directly or through agents, from withdrawing, transferring, or dealing with funds, shares, dividends, or other financial instruments up to N448,263,172.41 in any bank or financial institution across Nigeria. The court also directed all banks and financial institutions to immediately preserve any funds or financial instruments linked to the defendants upon receipt of the order. The judge also ordered the financial institutions to file affidavits within seven days, disclosing the balances in accounts held by the defendants, along with relevant account statements. Mr Aneke further granted a preservative order restraining the defendants from disposing of or encumbering any movable or immovable property, including future or contingent interests, up to the value of the alleged debt. The court also approved substituted service of court processes on the second and third defendants through delivery to their last known addresses via courier services. It then adjourned the matter until 9 April for mention. Background Court documents showed that the dispute originated from a N500 million overdraft facility granted to Relic Resources Limited on 28 March 2023, with a tenure of 365 days and an interest rate of 32 per cent per annum. The facility, which expired on 27 March 2024, was initially secured by a $200,000 cash collateral and later replaced with a mortgaged property measuring 7,500 square metres located in Epe, Lagos, following a directive by the Central Bank of Nigeria prohibiting foreign currency as collateral. According to the bank, an outstanding balance of N448,263,172.41 remained unpaid as of 31 October 2024 due to accumulated interest. In an affidavit sworn by a bank official, the lender alleged that the facility, intended to support working capital needs, was misapplied after disbursement. The bank claimed that large sums were transferred to several beneficiaries, including companies allegedly linked to the defendants, notably Raedial Farms Limited and The Magnificent Multi Services Limited. It further alleged that the third defendant acted as the “directing mind” behind the borrowing entity, using it and other companies as fronts to obtain the loan for personal benefit. READ ALSO: Court jails man five years for $62,500, €36,020 fraud The lender also stated that the borrowing company is no longer a going concern and has failed to meet its repayment obligations despite multiple demand notices issued in 2025. Keystone Bank expressed concern that the defendants may dissipate or conceal assets, thereby frustrating the enforcement of any judgement. It urged the court to grant the interim relief to preserve the assets pending the determination of the suit. After considering the application and submissions by the applicant’s lawyer, the court granted the five reliefs sought. As of the time of filing this report, the defendants had yet to respond to the order. Share this: Click to share on X (Opens in new window) X Click to share on Facebook (Opens in new window) Facebook Click to share on WhatsApp (Opens in new window) WhatsApp Click to share on Telegram (Opens in new window) Telegram Click to share on LinkedIn (Opens in new window) LinkedIn Click to email a link to a friend (Opens in new window) Email Click to print (Opens in new window) Print