The court ruling stems from a petition requesting the appointment of a provisional liquidator to oversee X3M Music’s assets while preventing the label’s management from accessing or operating any accounts during the legal proceedings. On February 9, 2026, Justice Ambrose Allogoa granted an interlocutory order, appointing an expert as the provisional liquidator.
Court Directives and Restrictions
Under the ruling, the liquidator is tasked with taking control of all traceable assets owned by X3M Music. The label’s management, employees, agents, directors and shareholders are barred from operating any funds in Nigerian financial institutions under any capacity. Additionally, the court issued an injunction preventing the company from tampering with its assets, properties, machinery or tools of trade.
The order marks a significant moment for X3M Music, which has built a reputation over the years for nurturing high-profile acts and carving a niche within Nigeria’s competitive music space. The legal action shifts the focus from artistic output and chart success to financial accountability and contractual compliance.
Efforts at Resolution Preceded Court Action
A source close to Praiz explained that the move to involve the court came after attempts to resolve the matter privately failed. The singer’s team reportedly requested detailed accounts of royalties and expenses from the label but received no response.
The source highlighted that the personal relationship between the artiste and the label boss initially delayed formal action. “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. It is only later, when questions remain unanswered, that formal steps become necessary,” the source said.
While specifics of the debt—including potential revenue from digital streaming royalties and playback tones—were not disclosed, the legal proceedings underscore the growing importance of transparency and accountability in artist-label relationships in Nigeria’s music industry.
As of press time, representatives for both X3M Music and Praiz had not responded to requests for comment. The case remains ongoing, with stakeholders across the industry watching closely for developments that could set important precedents for contract enforcement and artist rights.