Guaranty Trust Bank’s Pursuit of N17.8 Billion Debt from Afex Commodities Exchange Limited
Guaranty Trust Bank (GTBank) has initiated legal proceedings against Afex Commodities Exchange Limited to recover a substantial debt of N17.8 billion. This debt stems from a loan facility provided to Afex under the Central Bank of Nigeria’s Anchor Borrowers’ Programme, designed to support smallholder farmers engaged in maize production. The loan, initially granted for a nine-month period, matured on April 22, 2021, but Afex allegedly defaulted on its repayment obligations. GTBank’s claim includes the outstanding principal, accrued interest, pre- and post-judgment interest, and recovery costs.
On July 4, 2025, Justice Chukwujekwu Aneke of the Federal High Court in Lagos granted GTBank’s request for a garnishee order, freezing Afex’s accounts across sixty banks. This order, obtained through an ex parte application, effectively restricts Afex from accessing or manipulating the funds held in these accounts. The court further directed the banks to disclose, under oath, all accounts maintained by Afex or connected to its Bank Verification Numbers (BVNs) within seven days. This measure allows GTBank to identify and potentially seize assets held by Afex to offset the outstanding debt. The court’s decision represents a significant escalation in the legal battle between the two entities.
The garnishee order follows a previous Global Standing Instruction granted in favor of GTBank on May 27, 2024. This instruction authorized the bank to temporarily control Afex’s funds and assets in pursuit of debt recovery. The sequence of events underscores GTBank’s determined efforts to recoup the substantial sum owed by Afex. The underlying loan agreement was structured to bolster agricultural activities, specifically maize production by smallholder farmers, a key sector in Nigeria’s economy. Afex’s alleged default raises concerns about the effective utilization of funds allocated under the Anchor Borrowers’ Programme and the potential repercussions for the agricultural sector.
The core of GTBank’s case revolves around Afex’s alleged breach of contract by failing to repay the loan as agreed. The bank asserts that despite repeated demands, Afex has not fulfilled its financial obligations. GTBank’s legal team, led by Chief Ajibola Aribisala (SAN) and A. Adedeji (SAN), presented compelling evidence to secure the garnishee order. A detailed affidavit submitted by Ifeoma Esemudje, a GTBank staff member, outlines the specifics of the loan agreement, the outstanding debt, and the accrued interest. This comprehensive documentation strengthens GTBank’s legal standing and underscores the magnitude of Afex’s alleged default.
The legal battle between GTBank and Afex carries significant implications for the Nigerian financial and agricultural sectors. A successful recovery by GTBank would reinforce the importance of honoring contractual obligations and maintaining financial integrity within the lending ecosystem. Conversely, a ruling in favor of Afex could potentially raise questions about the enforceability of loan agreements and the effectiveness of debt recovery mechanisms. The outcome of this case will likely influence future lending practices and risk assessments within the agricultural sector, particularly under government-sponsored programs like the Anchor Borrowers’ Programme.
The unfolding legal proceedings underscore the challenges associated with lending within the agricultural sector, where factors such as market volatility and unforeseen circumstances can impact borrowers’ ability to repay loans. This case also highlights the role of the judiciary in upholding contractual agreements and ensuring the stability of the financial system. As the case progresses, the court’s decisions will provide valuable insights into the legal framework governing debt recovery and its impact on businesses operating within the agricultural sector. The adjourned date of July 18, 2025, will be a critical juncture in this legal battle, potentially shaping the financial futures of both GTBank and Afex Commodities Exchange Limited.
