Justice Chukwujekwu Aneke of the Federal High Court in Lagos has authorised Guaranty Trust Bank (GTBank) to temporarily take over the funds and assets of Afex Commodities Exchange following its N17.8 billion Central Bank of Nigeria (CBN) Anchor Borrowers’ loan.
Justice Aneke granted the interim injunctive relief after entertaining an ex-parte application filed on behalf of GTBank by its lawyers, Chief Ajibola Aribisala (SAN) and Ade Adedeji (SAN).
The N17,808,452,467.107 debt is made up of “N15,766,475,417.06 being the amount outstanding and unpaid, as of April 17, 2024, on the loan facilities (with the accrued interest) granted by the plaintiff to the defendant.
“Pre-judgement interest on the N15,766,475,417.06 at the prevailing rediscount rate of 28 per cent per annum approved by the CBN from April 18, 2024, when the plaintiff’s letter of demand dated April 17, 2024, was delivered to the defendant until judgment is delivered in this suit.
“Post-judgement interest on N15,766,475,417.06 and recovery cost and incidental expenses of N2,041,977,050.047.”
GTBank is the sole plaintiff/applicant in the suit marked FHC/L/CS/911/2024, Afex Commodities Exchange is the defendant/respondent, while 27 commercial banks and all money deposit banks were listed as nominal respondents.
In a 285-page affidavit attached to the application and deposed to by one Ifeoma Esemudje, the bank averred that the tenure of the facility was nine months, intended to finance smallholder farmers registered under the CBN Anchor Borrower’s programme.
The source of the repayment was to come from the sale of the maize produced, while the maturity date for the loan was April 22, 2021.
But, according to the plaintiff, the defendant did not fulfil its end of the deal.
The plaintiff, through its lawyers, then approached the court for an interim Global Standing Instruction (GSI) injunctive relief.
Our correspondent reports that the GSI, launched in July 2020 by Nigerian banks and the CBN, authorises a creditor bank to recover its debt from any or all other accounts held by the debtor with other financial institutions in case of default by the debtor.
Before GSI, borrowers who defaulted on loans to a particular financial institution could still maintain their bank balances in other institutions even if they couldn’t repay their debt.
Granting GTBank’s prayer, Justice Aneke ordered a “Place a No Debit” on all monies standing to the credit of Afex Commodities Exchange as of the day the order was served on the first to 28th respondent banks.
Justice Aneke has adjourned the case to June 10, 2024, for further hearing.
