The Federal High Court in Lagos has ordered a temporary forfeiture of assets belonging to X3M Music, with the decision closely followed by stakeholders in Nigeria's music industry. This ruling stems from a petition filed by R&B singer Praiz, who has alleged debts owed by the music label. In his application, Praiz requested the court to appoint a provisional liquidator to safeguard the assets of X3M Music until the matter is resolved.

Justice Ambrose Allogoa delivered the ruling on February 9, 2026, granting an interlocutory order that appoints an expert as provisional liquidator. This expert is charged with taking control of all traceable assets of X3M Music, notably blocking any operations by the company's management concerning its accounts or assets during the duration of the legal proceedings. The ruling effectively paralyzes the label's financial activities as the legal battle unfolds.

The implications of this court decision are significant for the Nigerian music industry, emphasizing the vulnerability of music labels to legal disputes and the financial turbulence that comes with it. It raises concerns about the operational capacity of X3M Music and how such legal matters might influence the careers of the artists associated with the label, including Praiz himself. As the case develops, the industry will be watching closely to understand its broader impact on artist-label relationships and financial management within the sector.