Federal High Court sitting in Lagos has ordered petroleum marketer, Mr. Ogbor, and his company, Danium Energy Services Ltd., to pay Union Bank of Nigeria Plc the sum of ₦20.7 billion following a breach of a loan settlement agreement.
Justice Deinde Dipeolu, in a judgment delivered on Monday, held that the Memorandum of Settlement executed between the parties on March 6, 2018, and the subsequent Consent Judgment were valid, binding, and enforceable.
The court found that the defendants defaulted on scheduled payments, thereby breaching the terms of the agreement and entitling Union Bank to recover the outstanding balance of ₦20,732,299,999.21 as of July 24, 2023.
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In addition to the monetary award, the court granted Union Bank exclusive possession of several high-value properties in Lagos, including:
- Plot 13, Zone R, Banana Island Foreshore Estate
- Plot 325, Akin Ogunlewe Street, Victoria Island
- 3A, Bose Enemoh Close, Ikoyi
- Danium Energy’s head office on Anifowoshe Street, Victoria Islan
Justice Dipeolu also authorized the bank to foreclose and sell the mortgaged properties to recover the debt, directing the Inspector-General of Police and other security agencies to assist with enforcement.
The defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, had argued that the settlement was obtained through fraud, misrepresentation, and economic duress.
They counterclaimed that Union Bank owed them ₦42.4 billion in excess deductions and sought ₦25 billion in damages.
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However, the court dismissed the counterclaims as baseless and lacking merit, affirming Union Bank’s legal right to recover its funds and assume control of the listed properties.
The judgment marks a significant victory for Union Bank in its long-standing dispute with Danium Energy, reinforcing the enforceability of loan settlements within Nigeria’s financial sector
