Justice Chukwujekwu Aneke of the Federal High Court in Lagos has mandated the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to investigate the accounts of Afex Commodities Exchange Limited across 28 commercial banks in Nigeria.
The decision followed Afex’s failure to repay loan facilities amounting to N17.8 billion obtained from Guaranty Trust Bank (GTBank).
The order was granted following an application by Chief Ajibola Aribisala, Senior Advocate of Nigeria (SAN), representing GTBank. The investigation will cover the period from February 27, 2024, to May 27, 2024, aiming to determine if Afex maintains accounts with these banks and to verify the authenticity of their account statements.
The court also instructed the CBN and EFCC to submit their findings within 30 days from the date of service of the orders. Chief Aribisala requested an adjournment to allow these agencies time to comply with the court’s directives, citing concerns that most of the banks had not accurately disclosed the funds held in Afex’s accounts.
However, Afex’s legal representative, Professor Olawale Olawoyin (SAN), opposed the adjournment request, urging the court to consider the defendants’ Preliminary Objection and to release individuals cited for contempt who were not directly involved in the case.
Justice Aneke adjourned the matter to September 26, 2024, for the hearing of pending applications. Previously, the court had authorized GTBank to temporarily seize Afex’s funds and assets due to the unpaid debt, which includes N15.8 billion in outstanding loans and accrued interest as of April 17, 2024. These loans were part of the CBN Anchor Borrowers’ Programme, intended to support smallholder farmers, with repayment expected from the sale of maize by April 22, 2021. Afex’s failure to honor this agreement led to GTBank seeking legal recourse.
Justice Aneke also ordered a “No Debit” restriction on all funds in Afex’s accounts held by the 28 respondent banks as of the service date of the order.
