Court orders petroleum marketer to pay Union Bank ₦20.7bn

The Federal High Court in Lagos has ordered petroleum marketer Kehinde Elliot Ogbor and his company, Danium Energy Services Limited, to pay ₦20,732,299,999.21 to Union Bank Plc.

Delivering judgment, Justice Deinde Dipeolu also granted the bank exclusive possession of all properties belonging to Ogbor and his company, including their high-value assets located at Banana Island Foreshore Estate, Victoria Island, and Ikoyi in Lagos.

Among them are the properties at Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate; Plot 197, Victoria Island Annexe (now Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island); 3A, Bose Enemoh Close, Off Inupa Drive, Ikoyi; and the company’s head office building at 10, Anifowoshe Street, Off Adeola Odeku Street, Victoria Island.

The judgment followed a suit filed by Union Bank Plc, represented by Adetunji Adeniyi-Adedoyin, seeking the interpretation and enforcement of several offer letters and a Memorandum of Settlement dated March 6, 2018, alongside a Consent Judgment delivered on April 25, 2018.

The bank had asked the court to determine whether the defendants’ failure to repay their debt constituted a breach of binding contractual obligations and to authorize recovery of the ₦20.73 billion loan secured against the listed assets.

In response, the defendants — Ogbor, Danium Energy Services, Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company — through their counsel Ikenna Emeh, filed a counterclaim, alleging that the settlement agreement was tainted by fraud, misrepresentation, undue influence, and duress.

They also sought to set off ₦65.72 billion against the debt, demanded ₦42 billion in refunds and damages for alleged excess charges, and accused the bank of breaching an agreement to facilitate the unfreezing of their accounts by the EFCC.

After reviewing all submissions, Justice Dipeolu dismissed the defendants’ counterclaims in their entirety, declaring them unsubstantiated and without merit.

The court upheld the validity of the 2018 Memorandum of Settlement and Consent Judgment, ruling that the defendants were in breach of their repayment obligations.

With this ruling, Union Bank has full authority to take possession of and sell the petroleum marketer’s prime Lagos properties to recover the ₦20.73 billion debt under its statutory power of sale.