Federal High Court sitting in Lagos has authorised Guaranty Trust Bank to temporarily take over funds and assets of Afex Commodities Exchange following its N17,808,452,467.107 Central Bank of Nigeria (CBN) Anchor Borrowers Loan debt.

Justice Chukwujekwu Aneke granted the bank an interim Global Standing Instruction (GSI) injunctive relief, following its application on May 27.

The judge made the order after hearing an ex-parte motion filed and moved by the banks counsel, Chief A.A. Aribisala (SAN), Ade Adedeji (SAN), with A.O. Olaleye and M.A. Aribisala.

The debt comprises N15,766,475,417.06 as amount outstanding and unpaid, as of April 17, on the loan facilities (with accrued interest) granted by plaintiff to defendant.

Pre-judgement interest on the N15,766,475,417.06 at prevailing rediscount rate of 28 per cent yearly approved by CBN from April 18 when the plaintiffs letter of demand dated April 17 was delivered to the defendant until judgment is delivered in this suit.

Post-judgement interest on the N15,766,475,417.06 and cost of recovery and incidental expenses in the sum of N2,041,977,050.047.

GTBank is sole plaintiff/applicant in the suit FHC/L/CS/911/2024, with Afex as defendant/respondent, while 27 commercial banks and money deposit banks were listed as nominal respondents.

The plaintiff averred via a 285-page affidavit deposed to by its official, Ifeoma Esemudje, that tenor of the facility was nine months, intended to finance smallholder farmers registered under CBN Anchor Borrowers programme.

The source of the repayment was to come from sale of the maize produced while maturity date for the loan was April 22, 2021.

But, the plaintiff said the defendant did not fulfil the deal.

The plaintiff, through its lawyers, approached the court for interim GSI injunctive relief.

GSI, launched in July 2020, by banks and CBN, authorises a creditor bank to recover its debt from any or other accounts held by the debtor with other financial institutions in case of default by the debtor.

Before GSI, defaulting borrowers were able to maintain their balances in other institutions, even if those balances could repay their debt.

Granting GTBanks prayer, Justice Aneke ordered a Place a No Debit on money standing to the credit of Afex as of the day the order was served on 1st to 28th respondent banks.

(The Nation)