Federal High Court Orders Investigation into Afex Commodities Exchange Accounts Over N17.8 Billion Debt
Justice Chukwujekwu Aneke of the Federal High Court in Lagos has ordered the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to investigate the accounts of Afex Commodities Exchange Limited across 28 commercial banks in Nigeria. This directive comes after Afex's failure to repay loan facilities totaling N17.8 billion obtained from Guaranty Trust Bank (GTBank).
The court's decision follows an application by Chief Ajibola Aribisala, Senior Advocate of Nigeria (SAN), representing GTBank. The investigation will cover the period from February 27, 2024, to May 27, 2024, to determine if Afex holds accounts with these banks and to verify the authenticity of their account statements.
Justice Aneke has instructed the CBN and EFCC to submit their findings within 30 days from the date of service of the orders. Chief Aribisala requested an adjournment to allow these agencies time to comply with the court’s directives, citing concerns that most of the banks had not accurately disclosed the funds held in Afex’s accounts.
However, Afex’s legal representative, Professor Olawale Olawoyin (SAN), opposed the adjournment request. He urged the court to consider the defendants’ Preliminary Objection and to release individuals cited for contempt who were not directly involved in the case.
Justice Aneke has adjourned the matter to September 26, 2024, for the hearing of pending applications. Previously, the court had authorized GTBank to temporarily seize Afex’s funds and assets due to the unpaid debt, which includes N15.8 billion in outstanding loans and accrued interest as of April 17, 2024. These loans were part of the CBN Anchor Borrowers’ Programme, intended to support smallholder farmers, with repayment expected from the sale of maize by April 22, 2021. Afex’s failure to honor this agreement led to GTBank seeking legal recourse.
In addition, Justice Aneke has ordered a “No Debit” restriction on all funds in Afex’s accounts held by the 28 respondent banks as of the service date of the order.
This development highlights the ongoing legal battle between GTBank and Afex Commodities Exchange Limited, as the court seeks to ensure accountability and transparency in financial transactions involving significant public funds.
**SIGNED**
Busola Kukoyi
SSA Media to the First Lady of the Federal Republic of Nigeria
16th July 2024
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