The Federal High Court in Lagos has ordered petroleum marketer Kehinde Ogbor and his firm, Danium Energy Services Limited, to pay Union Bank Plc the sum of N20.7 billion after failing to repay loans obtained under a settlement agreement.
Justice Deinde Dipeolu, who delivered the judgment, also granted Union Bank full possession of several high-value properties owned by Ogbor and his company. The decision followed a long-running debt recovery dispute between the bank and the energy firm.
According to court documents, the affected properties include Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate, Ikoyi, Lagos; Plot 197, Victoria Island Annex (now known as Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street, Victoria Island); 3A, Bose Enemoh Close, Off Inupa Drive, Ikoyi; and Danium Energy’s head office at 10, Anifowoshe Street, Off Adeola Odeku Street, Victoria Island, Lagos.
The case, marked FHC/L/CS/1905/2023, was filed by Union Bank through its counsel, Adetunji Adeniyi-Adedoyin, to enforce a Memorandum of Settlement executed between both parties on March 6, 2018. The bank urged the court to interpret the agreement and compel the defendants to pay the outstanding balance of N20,732,299,999.21, representing the unpaid debt as of July 24, 2023.
Union Bank also sought an order to take possession of the mortgaged assets and exercise its statutory power of sale.
After reviewing all submissions, Justice Dipeolu ruled in favour of the bank, stating that the Memorandum of Settlement and Consent Judgment entered in 2018 were valid, binding, and enforceable.
The court held that Ogbor and Danium Energy violated the settlement terms by failing to make agreed repayments, giving Union Bank the legal right to recover the debt and seize the pledged collateral.
In her ruling, Justice Dipeolu said the defendants must immediately liquidate their indebtedness and authorised the bank to foreclose and sell the mortgaged properties to recover its funds.
The court also directed the Inspector-General of Police (IGP) and other security agencies to assist Union Bank and court officials in taking possession of the assets without interference.
However, the defendants, represented by counsel Ikenna Emeh, alongside Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, filed a counter-affidavit and counterclaim asking the court to dismiss the bank’s suit.
They argued that the 2018 settlement was invalid, claiming it was obtained through fraud, misrepresentation, undue influence, and economic duress. The defendants further alleged that Union Bank imposed illegal charges and owed them N42.4 billion in excess deductions.
They also sought an order compelling the bank to refund the alleged overcharged funds, release their collateral securities, and pay N25 billion in damages for fraud, misrepresentation, and injury to reputation.
But Justice Dipeolu dismissed the defendants’ claims in their entirety, describing them as unsubstantiated and lacking merit. She ruled that the defendants failed to prove fraud or coercion and upheld Union Bank’s right to recover its funds.
Consequently, the court granted all the reliefs sought by Union Bank and affirmed its ownership rights over the mortgaged properties.
The ruling reinforces the court’s position that loan agreements and consent judgments are legally binding and cannot be set aside except on solid legal grounds.
The judgment is expected to strengthen confidence in Nigeria’s financial and judicial systems, where lenders continue to seek judicial enforcement for recovery of bad loans.
