N5 Billion Debt: Oba Akinruntan Abuja House Up For Sale, To Offset Debt

By Akinwale Kasali

Billionaire  Monarch, Oba Fredrick Obateru Akinruntan, the Olugbo Of Ùgbó Kingdom in Ilaje, Ondo State, is in a melancholic mood.

He is, presently, enmeshed in financial crisis, which could see him lose his House in Abuja. His hotel is up for sale to offset a huge debt he incurred.

A High Court of the Federal Capital Territory (FCT), Jabi, Abuja, will, on April 9, hear an application by Ecobank for an order authorising it to sell the Abuja hotel belonging to Obat Oil and Petroleum Limited, owned by the monarch.

The decision to sell the Hotel is to enable the Monarch offset a N5 billion debt, allegedly, owed the bank by the firm.

The hotel, Febson Hotels & Malls, is on Plot 2425, Herbert Macaulay Way, in Abuja.

Justice Hassan Babangida had adjourned to enable the parties to settle, but Obat’s lawyer, Mr Olalekan Ojo (SAN), said “not much had been achieved” in the settlement talks.

The bank’s lawyer, Mr Kunle Ogunba, (SAN), of Insolvency Forte, said the talks had broken down completely.

He added that he was yet to receive any correspondence or document on an out-of-court settlement.

The bank, in an October 18, 2019, motion, said the agreement to offset the N5 billion debt, is contained in a consent judgment of a Lagos High Court delivered on March 15, 2017.

It said the agreement between it and Obat Oil was adopted by the court as its judgment.

The bank, however, said despite the registered consent judgment, Obat Oil prevented potential buyers from paying for the hotel by demanding unrealistic sums.

But Obat Oil, in its counter-affidavit, said the bank, in an April 5, 2017 letter, assigned its rights and interests in the case to a third party, ETI Specialised Finance Company Limited, which is Ecobank Group’s debt recovery vehicle.

The oil company accused the bank of concealing the fact before the court.

The respondent contended that by the alleged concealment, the bank “no longer had any right or interest in the judgment-debt sought to be enforced before the honourable court”.

Justice Babangida fixed April 9 for definite hearing but noted that parties were at liberty to settle.

Oba Akinruntan, according to Forbes rating in 2019, is said to be the richest Monarch in Nigeria with a net worth of over $400 million.

It would be recalled that Oba Akinruntan had an issue with the Ooni of Ife, Oba Enitan Adeyeye Ogunwusi Ojaja ll, over hierarchical position, claiming he is more Superior to any other Monarch is Nigeria, leading to his suspension among the comity of First Class Monarchs in Nigeria.