Court Freezes N448m, Assets Of Keystone Bank’s Customers Over Debt

Justice Chukwujekwu Aneke of the Federal High Court in Lagos has ordered the freezing of funds and assets worth N448,263,172.41 belonging to five customers of Keystone Bank Limited over an alleged debt.

Justice Aneke gave the ex parte order in a debt recovery case filed by Keystone Bank Limited against the customers Relic Resources, Olufunmilayo Alabi, Uwadiale Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

The judge granted a Mareva injunction preventing the defendants, whether personally or through agents, from withdrawing, transferring, or otherwise dealing with funds, shares, dividends, or other financial instruments up to the disputed amount in any Nigerian bank or financial institution.

The court also ordered all banks and financial institutions to immediately freeze any funds belonging to the defendants upon receipt of the order.

The court further directed the defendants to file affidavits within seven days showing the balances in all accounts linked to the defendants, including relevant account statements.

A preservative order was also granted, preventing the defendants from selling or encumbering any movable or immovable property, including future or contingent interests, up to the value of the alleged debt.

Justice Aneke also granted permission for substituted service of court documents on the second and third defendants through courier delivery to their last known addresses.

In an affidavit filed in support of the suit, the bank claimed that the dispute arises from a N500 million overdraft granted to Relic Resources on March 28, 2023, with a one-year term and an interest rate of 32% per annum.

The Plaintiff stated that the facility, initially secured by a $200,000 cash collateral and later by a mortgaged property in Itunu City, Epe, Lagos, expired on March 27, 2024.

It claimed that an outstanding amount of N448,263,172.41 remained unpaid as of October 31, 2024.

Keystone Bank Limited also alleged that the third defendant diverted the loan for personal use and channelled funds into the fourth and fifth defendant companies.

It also claimed that the borrower is no longer operational and has failed to repay multiple demands issued between May and October 2025.

The bank argued that there is a real risk that the defendants could dissipate or conceal assets, thereby hindering enforcement of any eventual judgment.

It urged the court to preserve the assets until the case is resolved.

After reviewing the application and the submissions of Mofesomo Tayo-Oyetibo, SAN, the court granted all requested reliefs. Justice Aneke then adjourned the matter to April 9 for continuation of the hearing.