Nigerian court stops 54gene asset sale as founder accuses investors of collapse

A Federal High Court in Lagos has stopped the sale of 54gene’s assets, including its biodata of 100,000 Nigerians. The decision follows a lawsuit filed by founder Abasi Ene-Obong, who alleges that the startup’s lead investors forced the company into collapse and moved to sell off its data under questionable terms.

Ene-Obong’s petition, filed in July 2025, names the Cathay AfricInvest Innovation Fund and Adjuvant Capital as the key players behind the company’s downfall. He claims they sidelined the board, rejected his offers to rescue the company with external funding, and appointed a legal receiver to sell off assets—all without oversight.

Once considered one of Africa’s most promising biotech startups, 54gene raised over $45 million and played a key role in scaling Nigeria’s COVID testing infrastructure. It later pivoted to building a DNA database and proprietary data tools for disease research and drug development. But after post-COVID revenue dropped and a business pivot struggled, internal tensions between investors and the founder boiled over.

What happened at 54gene?

The core of the dispute centers on control. 

Ene-Obong says that after he was forced to resign in late 2022, the investors transferred the company’s assets and IP into its Nigerian subsidiary and began orchestrating a fire-sale of the biobank for just $3 million, far below the company’s peak valuation of $170 million. 

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He alleges they demanded four times their initial investment back before any sale proceeds could be shared, blocked contracts that could’ve revived revenue, and threatened him with false fraud allegations.

“Our mission to harness African genomic insights for better health rests on the highest standards of ethics and community trust,” Ene-Obong said in a statement. “We should hold ourselves accountable to every study participant, business partner, investor, creditor, and the broader communities we serve.”

Adjuvant Capital responded that it could not comment on ongoing court matters but said it “acts in the best interests” of its portfolio companies. 

Cathay AfricInvest has not issued a statement.

Before shutting down in 2023, 54gene had built Africa’s largest independent biobank, collecting genetic material across 300 ethnic groups. At its height, the startup generated more than $20 million in revenue. What began as a high-stakes play to reshape global medicine through African DNA has now turned into a legal showdown over data ownership and accountability.

In the background, Ene-Obong has quietly moved on. In September 2023, he co-founded Syndicate Bio, a new genomics venture with Jumi Popoola and Estelle Dogbo to build genomic datasets across Africa and other diverse regions.

It marks a fresh chapter for the former 54gene CEO—even as his legal fight over Africa’s most valuable biobank plays out in court.

The case is still in court. Until judgment is passed, the biobank and 54gene’s intellectual property remain frozen.