Federal High Court Authorizes GT-Bank To Seize Afex Commodities-Exchange Assets Over ₦17.8 Billion-Debt

The Federal High Court sitting in Lagos has granted Guaranty Trust Bank (GTBank) permission to temporarily take control of funds and assets belonging to Afex Commodities Exchange due to a debt amounting to ₦17,808,452,467.107 related to the Central Bank of Nigeria (CBN) Anchor Borrowers’ Loan program….CONTINUE READING

Justice Chukwujekwu Aneke issued an interim Global Standing Instruction (GSI) injunctive relief following an application by GTBank on May 27. This decision was made after an ex-parte motion filed by GTBank’s counsel, Chief A.A. Aribisala (SAN), Ade Adedeji (SAN), with A.O. Olaleye and M.A. Aribisala.

The debt includes ₦15,766,475,417.06 as the amount outstanding and unpaid as of April 17 on the loan facilities (with accrued interest) granted by GTBank to Afex. Additionally, the debt covers pre-judgement interest on the outstanding amount at a rediscount rate of 28 percent per year, approved by the CBN, from April 18 until the judgment is delivered, post-judgment interest, and recovery costs and incidental expenses totaling ₦2,041,977,050.047.

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GTBank, the sole plaintiff/applicant in the suit FHC/L/CS/911/2024, listed Afex as the defendant/respondent and included 27 commercial banks and money deposit banks as nominal respondents. The bank’s affidavit, deposed by official Ifeoma Esemudje, stated that the loan facility was meant to finance smallholder farmers under the CBN Anchor Borrower’s program with a nine-month tenure. The repayment was supposed to come from the sale of maize produced, with a maturity date of April 22, 2021. However, Afex failed to meet the repayment terms.

Seeking interim GSI injunctive relief, GTBank approached the court. The GSI, launched in July 2020 by banks and the CBN, allows a creditor bank to recover its debt from any or other accounts held by the debtor with other financial institutions in case of default. Prior to the GSI, defaulting borrowers could maintain balances in other institutions, even if those balances could repay their debt.

Justice Aneke granted GTBank’s request, ordering a “Place a No Debit” on money credited to Afex’s accounts across the 1st to 28th respondent banks as of the day the order was served.

Published By: Destiny.Jnr