Union Bank Secures ₦20.7bn Judgment in Debt Case Against Oil Marketers
A Lagos Federal High Court orders oil marketer and firm to pay ₦20.7 billion to Union Bank Plc, authorizing asset seizure and recovery by the bank.
A Federal High Court sitting in Lagos has ordered a petroleum marketer, Kehinde Ogbor, and his company, Danium Energy Services Limited, to pay Union Bank Plc the sum of N20.7bn following their failure to repay loans obtained under a settlement agreement.
In a judgment delivered by Justice Deinde Dipeolu, the court also granted Union Bank exclusive possession of several high-value properties belonging to Ogbor and his company.
The assets include Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate, Ikoyi, Lagos; Plot 197, Victoria Island Annex, now known as Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island, Lagos; 3A, Bose Enemoh Close, Off Inupa Drive, Ikoyi, Lagos; and Danium Energy’s Head Office at 10, Anifowoshe Street, Off Adeola Odeku Street, Victoria Island, Lagos.
The court’s order followed Union Bank’s suit, marked FHC/L/CS/1905/2023, filed through its counsel, Adetunji Adeniyi-Adedoyin, seeking to enforce a Memorandum of Settlement executed between the bank and the defendants on 6 March 2018. Union Bank had asked the court to interpret the terms of the agreement and compel the defendants to pay their outstanding indebtedness of N20,732,299,999.21, being the balance owed as of 24 July 2023.
The bank also sought permission to take possession of the mortgaged properties and exercise its statutory power of sale.
Justice Dipeolu, after reviewing the submissions of both parties, ruled in favour of Union Bank, holding that the Memorandum of Settlement and Consent Judgement entered in 2018 were binding and enforceable.
The judge declared that Ogbor and his company breached the terms of the settlement by failing to make payments as agreed and that Union Bank was entitled to recover the debt and enforce the collateral securities.
The court therefore ordered the defendants to immediately liquidate their indebtedness and authorised Union Bank to foreclose and sell the mortgaged properties to recover its funds.
It also directed the Inspector-General of Police and other security agencies to assist the bank and court officials in taking possession of the assets.
However, the defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, had, through their counsel, Ikenna Emeh, filed a counter-affidavit and counterclaim, urging the court to dismiss Union Bank’s suit.
They argued that the Memorandum of Settlement was invalidated by fraud, misrepresentation, undue influence, and economic duress.
The defendants also sought to set aside the consent judgement, alleging that Union Bank imposed illegal charges and owed them N42.4bn in excess deductions.
Among other reliefs, they asked the court to compel the bank to refund funds, release collateral securities, and pay N25bn in damages for alleged fraud, misrepresentation, and injury to credit and reputation.
Justice Dipeolu, however, dismissed the defendants’ counter-affidavit and counterclaim in their entirety, describing them as lacking in merit and substance.
The court consequently granted all the reliefs sought by Union Bank, affirming the lender’s right to recover the debt and take over the defendants’ properties.
From The Publisher's Desk:
"This case underscores that agreements are sacrosanct, once a settlement is signed, it binds both parties in law and in honor. Businesses and business owners must recognize that integrity in credit repayment preserves credibility far beyond courtrooms or using court as delay tactics. The judgment illustrates how poor financial governance and broken commitments can lead to reputational and asset loss. It reminds corporate leaders that transparency and compliance are non-negotiable in debt restructuring. Above all, it reinforces that in the age of accountability, ethical finance remains the truest form of sustainability.".. says Dr. Ohio O. Ojeagbase FICA
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