Court Grants Bank Authority to Take Over Abudu Family’s Firm Over Alleged N532m Debt

Federal High Court Authorizes Bank Takeover of Abudu Family’s Firm Over N532 Million Debt

In a landmark ruling that underscores the growing assertiveness of financial institutions in debt recovery, the Federal High Court in Lagos has granted Lotus Bank Limited the authority to take over the assets of Unpacked Limited, a company owned by Oluwafeyikemi Abudu and guaranteed by Oluwafemi Badewole.

The decision, handed down by Justice Deinde Isaac Dipeolu, follows an ex parte motion filed by the bank’s legal counsel, A. Adedoyin-Adetunji, under motion number FHC/L/CS/2097/2025.

The court’s order empowers Lotus Bank to seize both movable and immovable properties belonging to Unpacked Limited, which is currently in receivership. This includes the company’s funds held across various financial institutions.

The bank had argued that the firm had defaulted on a substantial debt amounting to ₦532 million, prompting the legal action to recover the owed sum through asset forfeiture.

Justice Dipeolu’s ruling was based on constitutional provisions, specifically Section 6(6) of the 1999 Constitution of the Federal Republic of Nigeria, which grants courts the jurisdiction to adjudicate on matters of this nature. The judge found merit in the bank’s application and issued the takeover directive without requiring prior notice to the defendants, a procedural feature typical of ex parte motions.

The implications of this ruling are significant. It not only marks a decisive moment in the enforcement of financial obligations but also sends a strong signal to corporate entities about the consequences of defaulting on bank loans.

For the Abudu family, whose business reputation has long been associated with Unpacked Limited, the court’s decision represents a major setback and a potential restructuring of their financial and corporate engagements.

As Lotus Bank moves to execute the court’s directive, industry observers will be watching closely to see how this case influences future debt recovery strategies and the broader relationship between banks and their corporate clients in Nigeria’s evolving financial landscape.