Since the Federal High Court in Lagos ordered a temporary forfeiture of assets belonging to X3M Music, stakeholders in the music industry have been watching closely, waiting to see how the legal storm will settle.
The order followed an application linked to a debt allegation involving R and B singer, Praiz, who filed a petition requesting the court to appoint a provisional liquidator to take custody of all X3M Music’s assets. The petition also sought to restrain the label’s management from operating its accounts or accessing any of its assets during the legal proceedings.
Delivering a ruling on February 9, 2026, Justice Ambrose 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. It 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 preventing the label from tampering with its assets, properties, machinery or tools of trade.
The development has left the once vibrant imprint in uncertain territory. Founded with a reputation for grooming and managing high profile acts, the label had, over the years, carved a niche within Nigeria’s competitive music space. However, the recent court directive has shifted the conversation from chart placements and industry accolades to compliance, contracts and accountability.
When contacted by Saturday Beats via WhatsApp and through offline calls, representatives of both parties did not respond as of press time. However, a source from the singer’s camp maintained that the move to court became inevitable after efforts at resolution failed, insisting that the action was taken in pursuit of accountability rather than vengeance. According to him, before approaching the court, the singer’s team formally requested a detailed account of royalties and expenses from the label but received no response.
He also explained that the delay was influenced by the personal relationship between the artiste and the label boss, which extended beyond business.
“You have to understand the nature of relationships between artistes and record labels. At the beginning, there is often trust. The label may be seen as a mentor or a guiding figure. In many cases, the relationship works initially, and there is mutual respect.
“Sometimes, issues are not immediately questioned because of that trust. People may assume that everything will resolve itself. It is only later, when questions remain unanswered, that formal steps become necessary,” he said.
On what exactly was involved in the “debt” owed to Praize such as revenue from digital streaming royalties and playback tones, the source noted that they were not privy to such information.
