Guaranty Trust Bank (GTB) has initiated legal proceedings against 60 high-ranking executives from 13 commercial banks, including chairmen, CEOs, and directors. This action stems from a ₦17 billion Anchor Borrowers Programme loan dispute involving GTBank and Afex Commodity Exchange. The executives face contempt charges for allegedly disregarding a No-Debit Order on Afex’s accounts.
Justice CJ Aneke of the Federal High Court in Lagos has ordered the imprisonment of these bank officials, including those from Access Bank, Citibank, Union Bank, and Zenith Bank, for not complying with the court’s ruling. The court had directed banks to transfer funds from Afex’s accounts to GTBank until the ₦17.81 billion loan is repaid. Additionally, GTBank has been granted control over Afex’s 16 warehouses to sell commodities acquired through the loan.
Afex Commodity Exchange claims to have repaid 90% of the loan but faces challenges from economic difficulties affecting farmers’ repayment rates. Afex has called for the Central Bank of Nigeria to implement a collateral guarantee clause to cover remaining debts, emphasizing the ongoing discussions with GTBank and CBN for a resolution. The court case continues this week.