Guaranty Trust Bank (GTBank) has secured a court order to freeze the assets of Afex Commodities Exchange Limited following a N17.8 billion loan default. The loan was provided under the Central Bank of Nigeria’s Anchor Borrowers’ Programme to support smallholder farmers.
The Federal High Court in Lagos granted GTBank an interim Global Standing Instruction (GSI) on May 27, 2024. This order allows GTBank to freeze Afex’s accounts at all Nigerian banks and transfer those funds to a GTBank account until the N17.8 billion debt is repaid. The debt includes the original loan amount, accrued interest, and legal fees.
GTBank alleges that Afex failed to repay the loan, which was due in April 2021. The funds for repayment were expected to come from the sale of maize produced by the farmers financed through the loan program. Afex has not yet commented on the lawsuit. The court will hear the full case on June 10, 2024.
Source: Vanguard