The Federal High Court sitting in Ikoyi, Lagos, has ordered the temporary forfeiture of assets belonging to X3M Music, the record label owned by music executive Steve Babaeko.
X3M Music operates as a subsidiary of X3M Ideas, a Lagos-based digital advertising agency.
The legal dispute stems from an interlocutory application filed by Praise Ugede Adejo, the Nigerian singer known professionally as Praiz, over an alleged unpaid debt linked to his contractual relationship with the label.
Praiz, who gained prominence after his appearance on MTN Project Fame, signed with X3M Music in 2010 and remained under the label until his exit in 2020. The singer is seeking the recovery of earnings he claims are outstanding from the duration of his contract.
On June 17, 2026, Praiz, through his lawyer Benita Ololo, filed a petition asking the court to appoint a provisional liquidator to assume control of X3M Music’s assets — both tangible and intangible — pending the final resolution of the matter.
He also requested an order restraining the company’s management from operating its accounts or dealing with its assets during the pendency of the proceedings.
In a ruling delivered on February 9, 2026, Justice Ambrose Lewis-Allogoa granted the application and appointed an expert as provisional liquidator.
The court directed the liquidator to take custody of all traceable assets belonging to X3M Music and barred the company’s management, staff, agents, directors, and shareholders from operating the label’s funds in any Nigerian financial institution.
The court further issued an interlocutory injunction restraining the company from tampering with its assets, properties, machinery, or tools of trade.
According to the ruling, the respondent must not obstruct the provisional liquidator in the discharge of statutory duties.
The matter has been adjourned to March 10, 2026, for the hearing and final determination of the winding-up petition.
