A Federal High Court in Lagos has awarded N20,732,299,999.21 in favour of Union Bank Plc against a petroleum marketing company, Danium Energy Services Limited, and its promoter, Kehinde Elliot Ogbor.
Justice Deinde Dipeolu, of the Lagos Judicial Division, who delivered the judgment in Suit FHC/L/CS/1905/2023, also granted Union Bank exclusive possession of all properties belonging to Ogbor and Danium Energy that were pledged as security for the loan.
These securities include properties in Ikoyi, Banana Island, and Victoria Island in Lagos, as well as the company’s head office.
By the Originating Processes, Union Bank approached the Federal High Court, seeking the interpretation and enforcement of a Memorandum of Settlement between the parties dated March 6, 2018, and a Consent Judgment of April 25, 2018, which according to the bank were breached by the respondents.
The bank argued that the settlement agreement, along with personal guarantees executed by the defendants, created valid contractual obligations and that the respondents’ failure to settle their debts had triggered the bank’s statutory power to foreclose on the pledged securities.
In its Originating Processes, the bank sought the immediate recovery of the outstanding debt, enforcement of the terms of the settlement, and authorisation for foreclosure and sale of the properties used as collateral.
In response, Respondents filed a joint counter-affidavit and counterclaim, challenging the bank’s case for lacking merit.
The defendants sought dismissal of the Bank’s suit, on the ground that the Memorandum of Settlement and Consent Judgment were vitiated by fraud, misrepresentation, undue influence, and economic duress, making the agreements voidable.
The respondents argued that Danium Energy had fulfilled its obligations under a 2019 offer letter, including repayment through the crystallisation of a Keystone Bank guarantee and delivery of petroleum cargo to an off-taker, and requested refunds of any amounts allegedly wrongfully demanded by Union Bank.
The Respondents, by their counterclaim also sought damages for alleged conspiracy, fraud, and injury to reputation, as well as the return of all collateral securities, including properties and the vessel MT Elohim.
After considering all submissions and reviewing the evidence, Justice Dipeolu dismissed the respondents’ counter-affidavit and counterclaim.
Another supportive factor for cocoa is the smaller cocoa production in Nigeria, the world’s fifth-largest cocoa producer. Nigeria’s Cocoa Association projects Nigeria’s 2025/26 cocoa production will fall -11% y/y to 305,000 MT from a projected 344,000 MT for the 2024/25 crop year. In related news, Nigeria reported that its August cocoa exports rose +15% y/y to 17,239 MT.
