Guaranty Trust Bank (GTBank) has dragged 60 top executives of 13 commercial banks to court for an N17bn Anchor Borrowers Programme loan lingers between GTBank and Afex Commodity Exchange over.
The 60 executives facing contempt proceedings for allegedly failing to implement a No-Debit-Order reportedly placed on the accounts of Afex Commodity Exchange with the banks include the chairmen, chief executive officers, directors, and company secretaries of the 13 banks.
In the suit, no FHC/L/CS/911/2024 involving Guaranty Trust Bank Limited and AFEX Commodities Exchange Limited, the Federal High Court, Lagos division, presided by Justice CJ Aneke, signed an order for the bank chairmen, MDs, directors, company secretaries, and the liquidator of Heritage Bank (Nigeria Deposit Insurance Corporation) to be committed to jail for failing to obey its May 27, 2024 ruling.
Parties cited for contempt include Access Bank, Citibank, Jaiz Bank, Union Bank, Fidelity Bank, First Bank of Nigeria Plc, First City Monument Bank,
NDIC (liquidator for Heritage Bank), Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank, Taj Bank, United Bank for Africa, and Zenith Bank, alongside its principal officers.
The court has granted GTB an injunction to take over and sell the commodities of AFEX 16 warehouses across seven states procured with the Central Bank of Nigeria Anchor Borrowers’ loan facility.
The court papers stated that AFEX is sourcing the Anchor Borrowers Programme Loan facility from GTB to finance smallholder farmers registered under the CBN Anchor Borrower’s program.
However, AFEX still needs to repay the loan, forcing the CBN to halt the program. AFEX stated, Evidenced in the attached letters, our engagements with Guaranty Trust Bank Limited, a Participating Financial Institution in the program,
as well as the apex bank has seen us highlight these limitations on the part of the defaulting farmers with suggestions being made to the CBN to activate the risk-sharing
structure put in place for the program and release funds accordingly to sustain activities and allow for needed recovery efforts in our agriculture sector.
“In light of these engagements, we consider the recent steps by Guaranty Trust Bank Limited to be premature, coming amid open conversations that are being had with all parties to find a path to resolution that does not unduly punish farmers, who have been the biggest hit by macroeconomic conditions they had no control over.”
