A Federal High Court in Lagos has ordered the freezing of Afex Commodities Exchange Limited’s bank accounts across 60 financial institutions due to an alleged N17.8 billion debt owed to Guaranty Trust Bank (GTBank). The ruling, issued by Justice Chukwujekwu Aneke on July 4, 2025, follows an ex parte application by GTBank’s legal counsel, Chief Ajibola Aribisala (SAN) and A. Adedeji (SAN).
The court’s Order Nisi prohibits the banks from altering, transferring, or encumbering any funds in Afex’s accounts linked to its Bank Verification Numbers (BVNs). Justice Aneke further mandated that the banks disclose, under oath, all accounts held by Afex within seven days. The case, identified as FHC/L/CS/911/2024, has been adjourned to July 18, 2025, for further proceedings.
This legal action builds on a prior court decision on May 27, 2024, which granted GTBank a Global Standing Instruction, allowing temporary control over Afex’s funds and assets to recover the debt. The outstanding amount stems from a loan facility provided under the Central Bank of Nigeria’s Anchor Borrowers’ Programme, intended to support smallholder maize farmers. According to GTBank, Afex defaulted on the nine-month loan, which matured on April 22, 2021, and has since failed to meet repayment obligations.
An affidavit from GTBank staff member Ifeoma Esemudje details that the debt includes a principal and accrued interest of N15.766 billion as of April 17, 2024, plus an additional N2.041 billion for recovery and incidental costs. The bank is also seeking a 28% pre-judgment interest rate, aligned with the Central Bank’s rediscount rate, and post-judgment interest, bringing the total claim to N17.808 billion.
The court’s intervention highlights ongoing challenges in Nigeria’s agricultural financing sector, particularly within programs designed to bolster smallholder farmers. As GTBank pursues recovery, the case underscores the complexities of enforcing loan agreements in the commodities market, with implications for future lending under similar initiatives.
