Afex debt court freeze sees 60 bank accounts frozen over N17.8bn owed to GTBank, sparking legal battles and financial scrutiny

Afex debt court freeze has ignited intense legal drama in Nigeria’s financial sector as the Federal High Court in Lagos ordered a freeze on Afex Commodities Exchange Limited’s accounts across 60 banks.

Also read: Over 80% of Nigerian farmers poor – AFEX

The move stems from an alleged N17.8 billion debt owed to Guaranty Trust Bank. Justice Chukwujekwu Aneke issued the freeze order on 4 July 2025 following an ex parte application by GTBank’s counsel, Chief Ajibola Aribisala (SAN) and A. Adedeji (SAN).

The court’s order restrains all listed banks from tampering with or transferring funds from the affected accounts, which are linked to Afex’s Bank Verification Numbers.

Justice Aneke declared, “Having carefully considered the application and the submissions of counsel, an Order Nisi is hereby granted as in Form 26 of the Judgement Enforcement Rules.”

The judge further ordered the banks to disclose, under oath and within seven days, all accounts linked to Afex or associated with its BVNs.

This freeze follows a previous ruling on 27 May 2024, when the same court approved a Global Standing Instruction allowing GTBank to take temporary control of Afex’s funds.

That earlier order aimed to facilitate debt recovery after Afex allegedly defaulted on a loan granted under the Central Bank of Nigeria’s Anchor Borrowers’ Programme.

The case, listed under suit number FHC/L/CS/911/2024, was filed after GTBank claimed that Afex failed to repay a nine-month loan facility meant to support smallholder farmers involved in maize production.

The facility matured on 22 April 2021, but Afex allegedly did not meet its repayment obligations.

According to a sworn 285-paragraph affidavit submitted by GTBank staff member Ifeoma Esemudje, the debt comprises a principal and accrued interest totalling N15.766 billion as of 17 April 2024.

In addition, the bank is claiming pre-judgement interest at 28 per cent, post-judgement interest, and N2.041 billion in recovery and incidental costs. These demands raise the total claim to N17.808 billion.

GTBank maintains that Afex has consistently failed to honour its repayment terms despite multiple attempts at recovery.

The court’s action now places a legal hold on all financial activities tied to the company’s accounts, potentially paralysing its operations while the matter unfolds.

While Afex has yet to release an official statement, financial analysts suggest the ruling may have significant implications for commodity exchanges and agricultural financing across Nigeria.

The Anchor Borrowers’ Programme, which was designed to empower local farmers, is now under scrutiny due to the legal entanglements surrounding one of its major intermediaries.

“The financial sector is watching this case closely,” said one legal analyst. “It raises questions about how agricultural loans are structured and monitored in Nigeria.”

The case is scheduled to continue on 18 July 2025, when the court will hear further submissions and potentially review the disclosures from the garnishee banks.

Legal observers anticipate that the final ruling could shape the future of public-private financing partnerships within Nigeria’s agricultural sector.

In the meantime, the court’s directive stands firm, and banks are expected to comply fully. The judgment underscores the growing resolve of financial institutions to use legal channels to recover high-stake debts.

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As legal proceedings continue, the spotlight remains fixed on Afex and its ability to defend itself in court. With N17.8 billion at stake and a freeze affecting 60 banks, the outcome of this case may reverberate beyond the courtroom.