The federal high court sitting in Ikoyi, Lagos, has ordered the temporary forfeiture of assets belonging to X3M Music, a record label owned by music executive Steve Babaeko.
X3M Music is a subsidiary of X3M Ideas, a Lagos-based digital
advertising agency.
The legal dispute began in June last year when Praise Ugede
Adejo, popularly known as Praiz, filed an interlocutory application over an
alleged unpaid debt dating back to his time with the label.
Praiz, who gained prominence after participating in MTN
Project Fame, signed with X3M Music in 2010 and remained under contract until
his departure in 2020.
The singer is seeking payment of earnings he claims are owed
to him from the duration of his contract.
On June 17, 2025, Praiz, through his lawyer Benita Ololo,
filed a petition requesting the court to appoint a provisional liquidator to
take custody of all X3M Music’s assets, both tangible and intangible, pending
the final determination of the case.
The petition also sought an order restraining the label’s management from operating its accounts or accessing any of its assets during the pendency of the legal proceedings.
In a ruling delivered on February 9, 2026, Justice Ambrose
Lewis-Allogoa granted an interlocutory order appointing an expert as
provisional liquidator.
The court directed the liquidator to take charge of all
traceable assets belonging to X3M Music and barred the company’s management, employees,
agents, directors and shareholders from operating its funds in any Nigerian
financial institution under any guise.
An interlocutory injunction was also issued restraining the
label from tampering with its assets, properties, machinery or tools of
trade.
A copy of the judgment was served on Nsikak Okon, identified
as the litigation manager.
The court further ordered that the respondent must not
interfere with the provisional liquidator in carrying out statutory duties.
The matter has been adjourned to March 10, 2026, for hearing
and final determination of the winding-up petition.
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