Federal High Court appoints provisional liquidator to oversee Steve Babaeko-owned company as singer seeks winding-up over alleged unpaid earnings
The Lagos music scene was rocked this week by a dramatic legal development that has seen a Federal High Court order the temporary forfeiture of assets belonging to X3M Music—the record label founded by advertising executive Steve Babaeko—following a bitter dispute with singer Praiz over alleged unpaid royalties.
Justice Ambrose Lewis-Allogoa, presiding over the Ikoyi division of the court, granted an interlocutory order on February 9 appointing an expert as provisional liquidator to take custody of all traceable assets belonging to the label, effectively freezing its operations pending the outcome of a winding-up petition filed by the embattled artist .
THE DISPUTE
The legal battle traces its origins to June 2025, when Praise Ugede Adejo—the singer known professionally as Praiz—filed an interlocutory application alleging unpaid earnings from his tenure with X3M Music. The Kogi-born artist, who first gained national attention as a finalist in the maiden edition of MTN Project Fame West Africa, signed with the label in 2010 and remained under its umbrella until his departure in 2020 .
Throughout his decade-long association with X3M Music, Praiz released several hit singles including "Rich and Famous," "Sisi," and "I Love You," establishing himself as one of Nigeria's premier R&B vocalists. The label, founded by Babaeko—who also serves as CEO of advertising agency X3M Ideas—played a significant role in developing his early career, alongside managing other notable acts including singer Simi during her formative years .
But beneath the surface of creative collaboration, financial tensions were apparently simmering. Praiz's legal team, led by Benita Ololo, filed a formal petition on June 17, 2026, 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 COURT'S RULING
Justice Lewis-Allogoa's ruling granted Praiz's application in substantial measure. The court directed the appointed liquidator to take charge of all traceable assets belonging to X3M Music, while issuing a sweeping injunction barring the company's management, employees, agents, directors, and shareholders from operating its funds in any Nigerian financial institution "under any guise" .
The order also restrained the label from tampering with its assets, properties, machinery, or tools of trade. A copy of the judgment was served to Nsikak Okon, the company's litigation manager, with explicit instructions that the respondent must not interfere with the provisional liquidator in carrying out their statutory duties .
The court's decision represents an interlocutory measure—a temporary step designed to preserve assets while the substantive matter is being fully resolved, and does not prejudge the final outcome of the case .
PRAIZ'S POSITION
In a statement shared with the press following the ruling, Praiz expressed his frustration with the label's handling of the matter.
"I have always sought an amicable resolution, but the company has not honoured its commitments," he said. "This action is necessary to protect my interests and ensure accountability" .
The specific details of the alleged debt have not been disclosed in publicly available court documents .
X3M MUSIC'S RESPONSE
As of this writing, X3M Music's management has not issued any official response to the court order. The label's immediate reaction—or lack thereof—remains unclear, though industry observers note that the ruling's publication in national newspapers could significantly impact the company's public image and ongoing business relationships .
THE LABEL'S LEGACY
X3M Music has long been regarded as a significant player in Nigeria's music industry. Founded by Babaeko, the label has nurtured numerous talents and maintained a reputation for quality production and artist development. Its parent company, X3M Ideas, is a well-established Lagos-based digital advertising agency with a substantial industry footprint .
The current legal entanglement threatens to overshadow that legacy, at least temporarily.
WHAT HAPPENS NEXT
The court has adjourned the case to March 10, 2026, for the hearing and final determination of the winding-up petition . Between now and then, the provisional liquidator will maintain custody of the label's assets, effectively freezing normal business operations.
The order also permits publication of the court's decision in national newspapers—a provision that could have far-reaching implications for the label's reputation and contractual relationships with current and prospective artists .
Industry insiders are watching the proceedings closely. The outcome could set important precedents for artist-label relationships in Nigeria's rapidly evolving music industry, where questions of royalty transparency and contractual fairness have long simmered beneath the surface of creative collaboration.
For Praiz, the ruling represents a significant legal victory—but the fight is far from over. For X3M Music, it marks an unprecedented challenge to its operational autonomy. And for Nigeria's music industry, it serves as a reminder that when artists and labels cannot resolve their differences privately, the courts will ultimately have the final word.
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