AFEX Commodities Exchange Limited and Guaranty Trust Bank (GTBank) have finally settled their long-running legal battle over a debt of N17.8 billion. The two parties reached an agreement after months of tension, court orders, and legal processes involving multiple financial institutions.
The matter was resolved on Tuesday, May 7, 2025, when the Federal High Court sitting in Ikoyi, Lagos, adopted the settlement agreement as a consent judgment. Lawyers from both AFEX and GTBank told the court that they had agreed on the final terms. As part of the settlement, the court granted permission for GTBank to transfer the money to a new account provided by AFEX. This was done after AFEX submitted an affidavit to correct some earlier errors in the case documents.
The issue started when GTBank gave a loan of N15.77 billion to AFEX under the Anchor Borrowers’ Programme of the Central Bank of Nigeria (CBN). This programme was created to support small-scale farmers across Nigeria. The loan also had additional charges and interest amounting to N2.04 billion, making the total debt N17.8 billion.
But after AFEX failed to repay the loan as agreed, GTBank went to court in March 2024 to recover the money. The bank asked the court for help and received an interim Global Standing Instruction (GSI) order. This order gave GTBank the power to collect the money directly from AFEX’s accounts in other banks. The court also placed a “No Debit” order on AFEX’s bank accounts, meaning the company could not withdraw money until the matter was resolved.
The court also gave GTBank permission to begin contempt of court proceedings against some banks and individuals that were believed to have ignored the earlier court orders. These included banks like Zenith Bank, Sterling Bank, Union Bank, and even some CBN officials. The accusations were that these banks either refused to enforce the “No Debit” order or helped AFEX move funds after the court ruling.
With the new agreement in place, all legal actions, including those contempt charges, have now been dropped. The court’s decision to adopt the settlement as a consent judgment means the matter is officially closed, and both parties have agreed to the terms without further arguments.
This resolution is being seen as a positive step for the Nigerian financial sector. Industry observers believe it shows that even large debt disputes can be settled through dialogue and legal channels rather than endless court battles. It also sends a strong message to both lenders and borrowers about the importance of transparency and accountability when dealing with public and private funds.
The Anchor Borrowers’ Programme has come under scrutiny in recent times for poor repayment rates and weak monitoring. The CBN, which provided the original funds to GTBank for onward lending, may now review its strategies for managing such schemes. AFEX, on the other hand, will need to rebuild trust in its ability to manage funds and support farmers effectively.
As it stands, this agreement has not only ended a financial dispute but may also influence how future commercial disagreements are resolved in the Nigerian business space.
