A Federal High Court in Lagos has ruled in favor of Union Bank Plc, ordering petroleum marketer Kehinde Ogbor and his company, Danium Energy Services Limited, to pay N20.7 billion over unpaid loans obtained under a previous settlement agreement.
Delivering the judgment, Justice Deinde Dipeolu also granted Union Bank exclusive possession of several high-value properties owned by Ogbor and his company, including:
- Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate, Ikoyi, Lagos
- Plot 197 (now Plot 325), Victoria Island Annex, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island, Lagos
- 3A, Bose Enemoh Close, Off Inupa Drive, Ikoyi, Lagos
- Danium Energy’s head office at 10, Anifowoshe Street, Off Adeola Odeku Street, Victoria Island, Lagos
The court’s decision follows Union Bank’s lawsuit (FHC/L/CS/1905/2023), filed through its counsel, Adetunji Adeniyi-Adedoyin, seeking enforcement of a Memorandum of Settlement executed with the defendants on 6 March 2018. The bank requested the court to interpret the agreement and compel payment of the outstanding balance of N20,732,299,999.21 as of 24 July 2023.
Union Bank also sought court approval to take possession of the mortgaged properties and exercise its statutory power of sale.
After reviewing submissions from both parties, Justice Dipeolu ruled that the 2018 Memorandum of Settlement and Consent Judgment were legally binding. He affirmed that Ogbor and his company had breached the settlement by failing to make scheduled payments, entitling the bank to recover the debt and enforce the collateral.
The court ordered the defendants to immediately settle their indebtedness and authorized Union Bank to foreclose and sell the mortgaged properties to recover its funds. Security agencies, including the Inspector-General of Police, were directed to assist in taking possession of the assets.
Defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolagi Sons (Nigeria) Company, had filed a counter-affidavit and counterclaim through counsel Ikenna Emeh, claiming the settlement was invalid due to fraud, misrepresentation, undue influence, and economic duress. They also alleged illegal charges by the bank, requesting refunds, release of collateral, and N25 billion in damages.
However, the court dismissed the defendants’ claims entirely, labeling them lacking in merit and substance, and granted all reliefs sought by Union Bank, reaffirming the lender’s right to recover its debt and take control of the properties.
This ruling underscores Union Bank’s ability to enforce loan agreements and recover debts, sending a strong signal to borrowers in default across Nigeria.
