The Federal High Court sitting in Lagos has ordered the freezing of funds and assets worth N448,263,172.41 in a debt recovery case filed by Keystone Bank Limited against five defendants.
The order, which was granted on March 26, 2026, was issued by Justice Chukwujekwu Aneke after an application was filed by the bank’s lawyer, Mofesomo Tayo-Oyetibo (SAN).
The case involves five defendants: Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.
In his ruling, Justice Aneke granted what is known in law as a Mareva injunction. This type of order is used to prevent a person or company from moving or hiding assets while a case is ongoing.
The court directed that the defendants must not withdraw, transfer, or tamper with any funds, shares, or financial assets linked to them in any bank or financial institution in Nigeria, up to the value of the alleged debt.
Banks and financial institutions across the country were also ordered to immediately identify and preserve any accounts belonging to the defendants once they are served with the court order.
In addition, the court instructed these institutions to provide details of such accounts within seven days. This includes the account balances and full statements.
The aim of the order is to ensure that the money in dispute is not lost before the court reaches a final decision.
Beyond bank accounts, the court extended the order to cover physical assets.
The defendants were restrained from selling, transferring, or using any of their properties, whether movable or immovable, up to the value of the debt.
This includes land, buildings, vehicles, and any other valuable assets they may own now or in the future.
The court also allowed substituted service of court papers on the second and third defendants. This means that the documents can be delivered to their last known addresses through courier services, instead of being handed to them directly.
According to documents filed before the court, the case started from a loan agreement between Keystone Bank and the first defendant, Relic Resources.
On March 28, 2023, the bank granted the company an overdraft facility of N500 million. The loan was meant to last for one year, with an interest rate of 32 per cent per annum.
The loan was initially backed by a cash deposit of $200,000 as collateral. Later, it was further secured with a mortgaged property located in Itunu City, Epe area of Lagos.
However, the loan expired on March 27, 2024, and was not fully repaid. As of October 31, 2024, the bank said the outstanding amount had risen to N448,263,172.41.
In its affidavit, Keystone Bank alleged that the loan was not used for its intended business purpose.
Instead, the bank claimed that the third defendant diverted the funds for personal use. It also alleged that the money was moved through the accounts of the fourth and fifth defendant companies.
The bank further stated that Relic Resources is no longer operating as an active business and has failed to repay the loan despite several reminders.
According to the bank, demands for repayment were made between May and October 2025, but the defendants did not respond positively.
The bank expressed concern that the defendants might try to hide or transfer their assets to avoid paying the debt.
This fear, the bank said, made it necessary to approach the court for urgent intervention.
In this case, the court agreed with the bank’s argument that there was a real risk of asset dissipation.
By freezing the assets, the court aims to protect the integrity of the legal process and ensure that any final judgment can be enforced.
Such orders are common in commercial disputes, especially in cases involving large sums of money and multiple parties.
The case highlights ongoing challenges in Nigeria’s banking sector, particularly in loan recovery.
Banks often face difficulties in recovering loans when borrowers fail to meet their obligations. This can affect their financial stability and ability to lend to other customers.
To reduce such risks, banks usually require collateral and conduct checks before approving loans. However, as seen in this case, these measures do not always prevent defaults.
The Central Bank of Nigeria has repeatedly advised financial institutions to strengthen their risk management systems and ensure proper monitoring of loan usage.
After granting the orders, Justice Aneke adjourned the case to April 9, 2026, for further hearing.
At the next hearing, the defendants are expected to respond to the claims and present their own side of the story.
The court will then decide whether the bank is entitled to recover the full amount claimed.
For now, the assets remain frozen, and the defendants cannot access or dispose of them until the court gives further instructions.
Cases like this are closely watched because they affect confidence in the financial system.
When banks are able to recover loans, it strengthens trust and encourages more lending to businesses and individuals.
On the other hand, unresolved debt disputes can discourage investment and slow economic growth.
For many Nigerians, access to credit is essential for running businesses and improving livelihoods. Ensuring that loans are properly managed and repaid is therefore important for the overall economy.