Redhook Media & Communications Limited has sued CIG Motors Company Limited at the Lagos State High Court, Igbosere, over alleged non-payment of N328.95 million based on an advertising contract.
Justice Sherifat Sonaike on Tuesday reserved ruling until August 6 on an application by CIG Motors seeking to discharge or vary an interim Mareva injunction freezing its bank accounts over the debt.
Redhook had approached the court seeking preservative orders pending arbitration over an advertising agreement it entered into with CIG Motors. Redhook entered into a one-year advertising contract with CIG Motors on April 1, 2025, to advertise the CIG Motors and LAGRIDE businesses on 400 dual-face lampposts across Lagos State for N563.73 million.
The claimant alleged that it fulfilled its obligations under the agreement, including installing and maintaining the advertisements, securing permits and submitting monthly reports, but that CIG Motors paid only for the printing and fabrication of the materials and the first instalment, leaving an outstanding balance of N328.95 million.
Redhook alleged that despite repeated demands and assurances from CIG Motors to pay the outstanding sum, the company failed to do so, prompting it to commence arbitration and seek a Mareva injunction to preserve CIG Motors’ assets pending the arbitral process.
On Tuesday, counsel to Redhook, Mutiu Akinrinmade, urged the court not to hear CIG Motors’ application first, arguing that the claimant had pending applications that should take priority.
Akinrinmade informed the court that Redhook had filed a preliminary objection challenging the competence of CIG Motors’ application to discharge the Mareva order and had also commenced contempt proceedings against Union Bank and Providus Bank.
He argued that those applications would affect the hearing of the defendant’s application and relied on judicial authorities to submit that contempt proceedings should be determined first where issues concerning the authority and dignity of the court arise.
The claimant’s counsel also argued that the application to discharge the Mareva order was not ripe for hearing because new facts had emerged from affidavits filed by some respondent banks, which he said required further responses.
On the allegation that Redhook concealed material facts when obtaining the ex parte order, Akinrinmade maintained that the claimant did not withhold any information from the court.
He argued that Redhook was not a director or insider of CIG Motors and could not have known the company’s internal financial position, adding that facts about CIG Motors’ assets could not amount to concealment if they were not within the claimant’s knowledge.
Akinrinmade further submitted that the affidavits filed by Union Bank, Providus Bank, and Access Bank contradicted the claims made by CIG Motors regarding funds allegedly standing to its credit.
He argued that while CIG Motors claimed to have substantial balances in some accounts, the bank affidavits showed that the company was heavily indebted.
However, he told the court that Redhook was willing to consider a variation of the Mareva order if adequate security was provided.
According to him, the claimant had earlier indicated before the vacation judge that it would not object to limiting the order to an account containing sufficient funds to cover the disputed debt.
He, however, expressed concern that the account said to contain about N330 million was with FSDH Merchant Bank, which was not a party to the proceedings.
He argued that any future arbitral award might not be enforceable against funds held by a non-party unless the court made appropriate consequential orders.
“If that concern is taken care of, we do not have a problem,” Akinrinmade told the court, adding that the claimant would not oppose the release of other accounts once adequate security was provided.
Counsel to CIG Motors, Moyosore Onigbanjo (SAN), urged the court to discharge the Mareva injunction, describing it as an exceptional remedy that should only be granted where there is evidence that a defendant is dissipating assets or attempting to evade enforcement of a judgment.
He argued that no evidence had been presented showing that CIG Motors was selling its assets or planning to leave Nigeria.
The Senior Advocate told the court that CIG Motors operates the LAGRIDE e-hailing business, has a vehicle assembly plant in Lagos, offices in Lagos and Abuja, and employs about 465 workers.
He argued that freezing all the company’s accounts had paralysed its operations, preventing it from paying salaries and meeting statutory obligations.
Onigbanjo also relied on an affidavit filed by FSDH Merchant Bank, which he said showed that CIG Motors had about N330 million in an account with the bank, enough to cover the alleged debt.
He urged the court to, at the least, vary the order by restricting it to that account instead of maintaining a freeze on all the company’s accounts.
Justice Sonaike, during the proceedings, observed that the purpose of a Mareva injunction was not necessarily to freeze all accounts of a defendant where sufficient funds existed to cover the amount in dispute.
After hearing submissions from counsel, the judge adjourned the matter until August 6, 2026, for ruling on the applications.
