A Federal High Court in Lagos has ordered petroleum marketer Kehinde Ogbor and his company, Danium Energy Services Limited, to pay Union Bank Plc N20.7 billion for failing to honor loans under a 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. The assets include:

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 ruling followed Union Bank’s suit, seeking enforcement of a Memorandum of Settlement executed on 6 March 2018. The bank asked the court to interpret the agreement and compel the defendants to pay the outstanding N20.73 billion owed as of 24 July 2023. Union Bank also requested permission to take possession of the mortgaged properties and exercise its statutory power of sale.

After reviewing submissions from both sides, Justice Dipeolu ruled in favor of Union Bank, affirming that the 2018 Memorandum of Settlement and Consent Judgment were binding and enforceable. The judge found that Ogbor and his company breached the settlement terms by failing to make the agreed payments, entitling the bank to recover the debt and enforce collateral securities.

The court ordered the defendants to immediately settle their debt and authorized Union Bank to foreclose and sell the mortgaged properties. Security agencies, including the Inspector-General of Police, were directed to assist in taking possession of the assets.

The defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, had filed a counterclaim alleging that the settlement was invalid due to fraud, misrepresentation, undue influence, and economic duress. They also claimed the bank imposed illegal charges and owed them N42.4 billion in excess deductions, seeking refunds, release of collateral, and N25 billion in damages.

Justice Dipeolu dismissed the defendants’ counterclaim in its entirety, describing it as without merit. The court granted all reliefs sought by Union Bank, reaffirming the lender’s right to recover the debt and take over the defendants’ properties.