On June 20, the Federal High Court in Lagos will hear contempt proceedings filed by Guaranty Trust Bank (GTB) against 13 banks and 60 officials in a suit seeking to recover a N17 billion Anchor Borrowers Programme loan from Afex Commodity Exchange.
Justice Chukwujekwu Aneke issued the ruling on June 11, 2020, after hearing GTB’s counsel, Ade Adedeji (SAN), and A.O. Olaleye Esq. bring a motion ex parte in Suit FHC/L/CS/911/2024.
Bank CEOs include chairman, managing directors, directors, and corporate secretaries. According to the motion, they allegedly neglected to enforce a May 27 No-Debit Order put on Afex Commodity Exchange’s accounts with them.
Justice Aneke issued an order allowing the applicant to serve Form 48 (Notice of Consequences of Disobedience to Court Order) dated June 11, 2024, as well as any other forms or processes issued in the contempt proceedings, including Form 49 on the first-60th parties cited for contempt.
In the May 27 order, 20 banks were required to pay money to the respondent’s credit into AFEX’s GTB account until the N17.81 billion was fully repaid.
The loans total N17.81 billion, with N15.77 billion due as of April 17 and a cost of collection and incidental fees of N2.04 billion.
The court also granted an order allowing GTB to take over AFEX’s 16 warehouses in seven states and sell the items stored there, which it claimed were obtained through the Central Bank of Nigeria Anchor Borrowers’ lending facility.
Earlier this month, the court issued contempt proceedings against AFEX and other officials, including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye, and Koonal Ghandi.
According to the plaintiffs, AFEX obtained the Anchor Borrowers Programme Loan facility from GTB in order to offer financing to smallholder farmers registered under the CBN Anchor Borrower’s Programme.
The loan was expected to be repaid through the sale of commodities. Despite an extension, AFEX failed to keep its end of the bargain.
In Essence
GTB loaned N17.81 billion to Afex under the CBN Anchor Borrowers Programme meant to finance smallholder farmers and Afex failed to repay the loan despite extensions.
GTB obtained a court order to freeze Afex’s accounts in 20 banks and seize their warehouses in 7 states to recover the debt.
As 13 banks and 60 officials allegedly ignored the court order to freeze Afex’s accounts, GTB initiated contempt proceedings against them. The court will hear the case on June 20.
