Connect with us

latest

GTBank Takes Legal Action Against 60 Bank Executives Over N17bn Debt

Published

on

GTBank Takes Legal Action Against 60 Bank Executives Over N17bn Debt

Writing by Sediq Mutari....KINDLY READ THE FULL STORY HERE▶

On the 17th of June 2024, Guaranty Trust Bank (GTBank) initiated legal proceedings against approximately 60 high-ranking officials from 13 commercial banks amid an ongoing dispute between GTBank and Afex Commodity Exchange regarding a N17 billion Anchor Borrowers Programme loan.

The 60 executives, which include chairpersons, chief executive officers, directors, and company secretaries from the 13 banks, are facing contempt charges for allegedly disregarding a No-Debit-Order placed on Afex Commodity Exchange’s accounts with their respective banks.

In a suit numbered FHC/L/CS/911/2024 involving Guaranty Trust Bank Limited and AFEX Commodities Exchange Limited, the Federal High Court in Lagos, presided over by Justice CJ Aneke, issued an order for the bank chairpersons, managing directors, directors, company secretaries, and the liquidator of Heritage Bank (Nigeria Deposit Insurance Corporation) to be held in contempt for failing to comply with its ruling on May 27, 2024.

A legal notice titled ‘Order to Serve Notice of Disobedience to Court Order via Newspaper Publication’ was published in several national dailies, including The PUNCH, on Thursday. The notice granted leave to the plaintiff applicant to serve Form 48 (Notice of Consequences of Disobedience to Court Order) and other relevant forms and processes to the 1st to 60th parties cited for contempt.

The court ruling, dated May 27, 2024, directed twenty banks to transfer funds in favor of Afex Commodity Exchange until the N17.81 billion debt is repaid. This amount includes the outstanding N15.77 billion loan and unpaid costs of recovery and incidental expenses totaling N2.04 billion.

Furthermore, the court granted an injunction allowing GTBank to seize and sell commodities stored in Afex’s 16 warehouses across seven states. These commodities were acquired using funds from the Central Bank of Nigeria Anchor Borrowers’ loan facility.

Previously, the court had initiated contempt proceedings against AFEX and some of its principal officers, including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye, and Koonal Ghandi.

AFEX, in response to the interim court order, stated that it had repaid approximately 90% of the loan facility. However, a portion of the loan remained outstanding due to economic challenges faced by farmers, who were unable to repay their debts in full.

The lingering effects of economic hardships have hindered farmers from repaying their loans, impacting AFEX’s ability to settle its outstanding debt. AFEX has urged the Central Bank of Nigeria to activate the collateral guarantee clause included in the Anchor Borrowers Programme to support recovery efforts and sustain agricultural activities.

The Anchor Borrowers Programme, initiated by the CBN in 2015, aimed to enhance economic linkages between smallholder farmers and processors to boost agricultural output and ensure food price stability. As of 2022, over 4.8 million individuals had benefited from the programme, with the CBN releasing over N1.079 trillion, of which over N500 billion is due for repayment.

However, the CBN has since discontinued the programme as it shifts its focus from development financing interventions to maintaining price and monetary stability.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

latest

Tinubu Departs Abuja For Saudi Arabia In Search Of Prayers For Nigeria.

Published

on

President Bola Tinubu will depart Abuja on Thursday for Makkah, Saudi Arabia, to perform the Islamic religious pilgrimage known as Umrah.....KINDLY READ THE FULL STORY HERE▶

Umrah involves visiting the holy city of Makkah to offer prayers and worship Allah, News reports.

According to a statement issued by the Presidency on Wednesday night, the trip will provide the President with an opportunity to pray for Nigeria and seek divine guidance for the country and its people.

During his stay in Makkah, Tinubu is expected to pray for peace, unity, stability and progress in Nigeria.

Before departing Abuja, the President will commission some equipment procured for the Nigerian Air Force at the Presidential Wing of the Nnamdi Azikiwe International Airport.

The equipment is expected to strengthen the Air Force’s capacity to carry out its operational responsibilities.

Tinubu is expected to return to Nigeria next week after completing the religious exercise in Saudi Arabia.

Meanwhile, the President is expected to present the 2027 national budget proposal to the National Assembly before the end of 2026.

The Minister of State for Budget and Economic Planning, Doris Anite-Uzoka, gave the assurance on Wednesday in Abuja while speaking with journalists after the Federal Executive Council (FEC) meeting.

She explained that work on the proposed budget was already underway and that the government intended to submit it before the end of the year.

Continue Reading

latest

‘They Want To Stop My Campaign’ – Doris Ogala Speaks After Prison Remand.

Published

on

Nollywood actress and African Action Congress (AAC) governorship candidate in Abia State, Doris Ogala, has accused Governor Alex Otti and several prominent religious leaders of being behind her remand in prison.....KINDLY READ THE FULL STORY HERE▶

News reports that Ogala made the allegations in a series of posts shared on her Instagram page.

In one of the posts, the actress alleged that Governor Otti played a major role in her remand.

She also named Pastor Johnson Suleman, Pastor Jerry Eze and Pastor Chris Okafor, claiming that the individuals were responsible for her current situation. However, she did not provide evidence to substantiate the allegations in the posts.

In another post, Ogala alleged that the individuals she mentioned were afraid of secrets she claimed to know about them.

The actress, who is seeking to become Abia State governor under the AAC platform in the 2027 election, further alleged that her detention was intended to frustrate her political ambition and stop her campaign.

Ogala wrote: “Alex Oti is fully behind my remand as well. 1 woman, 5 men. Suleman Johnson, Jerry Eze, Chris Okafor, Alex Oti. I big pass una. They are afraid of their secret I know. All of them are responsible. Believe me. They want to stop my campaign as governor of Abia State.

“God will fight this battle. Today is Doris, tomorrow it may be you. Let’s fight against weaponization of law between boyfriend and girlfriend issue. Chris, this is all you can do. Nothing more. Suleman Johnson, Jerry Eze, una know nau. The secret I know is too heavy. That’s why.”

The allegations remain claims made by Ogala, and no independent confirmation was provided in the posts to establish that the named individuals influenced her remand.

Continue Reading

latest

Nigeria’s 2027 Budget: Tinubu To Lay Estimates Before National Assembly This Year.

Published

on

President Bola Tinubu is expected to present the 2027 national budget proposal to the National Assembly before the end of 2026.....KINDLY READ THE FULL STORY HERE▶

The Minister of State for Budget and Economic Planning, Doris Anite-Uzoka, gave the assurance on Wednesday in Abuja while addressing journalists after the Federal Executive Council (FEC) meeting.

According to the minister, preparations for the 2027 budget are already underway, with the government targeting presentation before the end of the year.

“We are working on the 2027 budget, and the intention is to present it before the end of the year,” she said in response to a question about when the budget would be submitted.

Anite-Uzoka’s disclosure comes weeks after the Budget Office of the Federation directed all ministries, departments and agencies (MDAs) to submit their proposed personnel costs for 2027 alongside their respective establishment Acts.

The directive was contained in a Personnel Costs Budget Call Circular dated September 4, 2026, and signed by the Director-General of the Budget Office, Tanimu Yakubu.

Meanwhile, Senator Victor Umeh, who represents Anambra Central, has criticised Tinubu’s request for fresh external loans.

Tinubu had written to the National Assembly seeking approval for the Federal Government’s 2026–2027 supplementary external borrowing plan, valued at $20.5 billion and €1.45 billion.

Reacting during an interview on Channels Television, Umeh questioned how funds obtained through previous borrowing arrangements had been utilised.

The senator argued that despite repeated approvals for government loans, some budgetary obligations remained unfulfilled.

He also questioned why contractors were still owed payments for capital projects, noting that previous borrowing requests had been justified on the grounds that the funds would be used to finance government budgets.

Continue Reading

Trending