Alleged N17.8bn Debt: Court Orders CBN, EFCC to Investigate Afex Accounts in 28 Banks

Wale Igbintade

A Federal High Court in Lagos has ordered the Central Bank of Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) to carry out individual investigation on the accounts of the Afex Commodities Exchange Limited in 28 banks across Nigeria following its inability to pay alleged N17,808,452,467,107  loan facilities granted by Guaranty Trust Bank.

Justice Chukwujekwu Aneke granted the motion exparte following an application filed by GTBank’s counsel, Chief Ajibola Aribisala (SAN).

The investigation, which is to cover the period of February 27, 2024, to May 27, 2024, is to ascertain whether Afex Commodities Exchange maintain accounts with the 28 banks, and whether there has been any falsification of the account statements of the company in the 28 banks listed on the face of motion paper.

The court also gave the CBN and EFCC  minimum of 30 days from the date of service of the orders on them to file their report to the court.

Specifically, the court ordered Stanbic IBTC Bank Plc, Providus Bank Limited, and Union Bank Plc jointly and along with any other listed banks found, based on the reports of the Economic and Financial Crimes Commission and the Central Bank of Nigeria, to have misdirected the court as to the true state of the accounts of the defendant/respondent in their custody to transfer same into the account of Afex Commodities Exchange Limited’s account with account number 0425755319 with Guaranty Trust Bank Limited.

At the resumed hearing of the matter yesterday, GTBank’s counsel, Chief Ajibola Aribisala (SAN), urged the court to adjourn the matter to enable the CBN and EFCC to comply with the order of the court.

Aribisala informed the court that 90 percent of all the banks directed by the court to disclose all monies standing to the alleged debtor’s account in their custody have not been truthful and have failed to present accurate accounts before the court.

He urged the court to await the report of investigation by the CBN and EFCC before entertaining any further application(s) in the matter.

Opposing the application for adjournment, Afex lawyer, Prof. Olawale Olawoyin (SAN), argued that the business of the day was for the hearing of pending applications.

He submitted that the defendant have not moved a single application since the commencement of the suit, and urged the court to hear the Preliminary Objection filed by the defendants.

Olawoyin also urged the court to release some persons cited for contempt of court, but have nothing whatsoever to do with the matter.

In a brief ruling, Justice Aneke adjourned the matter till September 26, 2024, for hearing of pending applications.

Recall that the court had 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.

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.

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.