Court Freezes N448 Million in Assets Over Alleged Debt to Keystone Bank
A Federal High Court in Ikoyi, Lagos, has issued a significant order to freeze funds and assets valued at N448.3 million in a debt recovery action initiated by Keystone Bank Limited against five defendants. The ruling, delivered by Justice Chukwujekwu Aneke on March 26, 2026, follows an ex parte application presented by senior advocate Mofesomo Tayo-Oyetibo.
Defendants and Court Orders
The defendants in this case include Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, Magnificent Multi Services Limited, and Raedial Farms Limited. Justice Aneke granted a Mareva injunction, which restrains these defendants from withdrawing, transferring, or dealing with funds, shares, dividends, and other financial instruments up to the disputed sum in any Nigerian bank or financial institution.
Furthermore, the court directed all banks and financial institutions to immediately preserve any funds belonging to the defendants upon service of the order. These institutions are required to file affidavits within seven days, disclosing the balances in all accounts linked to the defendants and providing relevant account statements.
Additional Preservative Measures
In addition to the Mareva injunction, the court issued a preservative order that prevents 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. Justice Aneke also granted leave for substituted service of court processes on the second and third defendants through courier delivery to their last known addresses.
After considering the application and submissions from Tayo-Oyetibo, the court granted all the reliefs sought and adjourned further proceedings to April 9, 2026.
Background of the Dispute
According to court documents, the dispute originates from a N500 million overdraft facility granted to Relic Resources on March 28, 2023. This facility had a tenure of 365 days and an interest rate of 32 percent per year. Initially secured by a $200,000 cash collateral and later by a mortgaged property in Itunu City, Epe, Lagos, the facility expired on March 27, 2024.
Keystone Bank stated that an outstanding sum of N448,263,172.41 remained unpaid as of October 31, 2024. In an affidavit supporting the application, the bank alleged that the loan was diverted for personal use by the third defendant and channeled into the companies of the fourth and fifth defendants.
Bank's Allegations and Concerns
The bank further claimed that the borrower is no longer a going concern and has failed to honor multiple repayment demands issued between May and October 2025. Keystone Bank argued that there was a real risk the defendants could dissipate or conceal assets, thereby frustrating the enforcement of any eventual judgment. Consequently, the bank urged the court to preserve the assets pending the determination of the suit.
This case highlights the legal mechanisms available for financial institutions to recover debts and protect their interests in Nigeria's judicial system. The court's decisive action underscores the importance of asset preservation in debt recovery proceedings, ensuring that creditors have a fair chance to reclaim owed funds.
