Business
GTBank drags 60 bank CEOs to court over N17bn debt
One of Nigeria’s commercial retailing bank, Guaranty Trust Bank has dragged about 60 bank executive officers to court over outstanding debt to the tune of a whopping N17 billion.
The executives belong to 13 commercial banks who are involved in a suit between GTBank and Afex Commodity Exchange for not being able to liquidate the Anchor Borrowers Programme loan since 2020.
The 60 executives including the chairmen, chief executive officers, directors, and company secretaries of the 13 banks are facing contempt proceedings for allegedly failing to implement a No-Debit-Order reportedly placed on the accounts of Afex Commodity Exchange with the banks.
In suit no FHC/L/CS/911/2024 involving Guaranty Trust Bank Limited and AFEX Commodities Exchange Limited, the Federal High Court, Lagos division presided by Justice CJ Aneke signed an order for the bank chairmen, MDs, directors, company secretaries and the liquidator of Heritage Bank (Nigeria Deposit Insurance Corporation) to be committed to jail for failing to obey its May 27, 2024 ruling.
A legal notice titled ‘Order to serve notice of disobedience to order of court vide newspaper publication’ published in some national dailies including The PUNCH on Thursday, partly read, “An order granting leave to the Plaintiff Applicant to serve Form 48 (Notice of Consequences of Disobedience to Order of Court) dated 11th June, 2024 and all other forms and processes that may be issued in this contempt proceedings inclusive of Form 49 on the 1st-60st parties cited for contempt
The matter was adjourned to next Thursday.
Parties cited for contempt include Access Bank, Citibank, Jaiz Bank, Union Bank, Fidelity Bank, First Bank of Nigeria Plc, First City Monument Bank, NDIC (liquidator for Heritage Bank), Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank, Taj Bank, United Bank for Africa and Zenith Bank alongside its principal officers.
In the court ruling dated May 27, 2024, twenty banks were directed to transfer monies standing to the credit of the respondent into the AFEX’s account with GTB until the N17.81bn is repaid.
The N17.81bn loans comprise N15.77bn; the amount outstanding and unpaid, as of April 17, 2024, and the cost of recovery and incidental expenses in the sum of N2.04bn.
The court also granted an injunction allowing GTB to take over AFEX 16 warehouses located across seven states and sell the commodities stored in them, which it said were procured with the Central Bank of Nigeria Anchor Borrowers’ loan facility.
Earlier in the month, the court had served contempt proceedings against AFEX and some of its principal officers including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye and Koonal Ghandi.
According to court papers, AFEX had sourced the Anchor Borrowers Programme Loan facility from GTB to provide finance for smallholder farmers registered under the CBN Anchor Borrower’s programme.
The loan was expected to be repaid from the sale of commodities. However, AFEX failed to uphold its end of the deal even after an extension.
In a statement following the interim court order, AFEX claimed that it had repaid about 90 per cent of the loan facility.
“However, a portion of the loan remains outstanding with the farmers and while we have paid out a portion out of our own purse, we remain in discussions with CBN over the outstanding amounts of the said facility,” the exchange said.
It also said the full value of the loan was utilised to provide input to farmers in three consecutive seasons, starting in 2020.
The exchange added that it had remained consistent with repaying the loans until economic headwinds impacted the operations of the farmers that they had disbursed the money to.
“Over 800,000 hectares of farmland were financed through the course of the programme’s operationalisation; however, significant macro and policy headwinds, including the cash crunch on the back of the Naira redesign policy, severely impacted the productive capacity and market participation of the smallholder farmers in the 2022/2023 season.
“This resulted in less than 40 cent repayment from farmers on their input loan bundles, down from our 90per cent repayment rates in the previous eight years of providing input financing for farmers. The low repayment rate ultimately impacted on our ability to refund the full value of the loan at the end of Q1 2023 and following a 6-month extension period,” AFEX added.
The commodities exchange also stated that the lingering effects of the cash crunch have continued to impact farmers, who sold at below market value to get immediate cash inflows to sustain their families in the period and remain unable to pay back.
Meanwhile, AFEX has called on the Central Bank of Nigeria to activate the collateral guarantee of up to 70 per cent clause included in the Anchor Borrowers programme.
“Evidenced in the attached letters, our engagements with Guaranty Trust Bank Limited, a Participating Financial Institution in the program, as well as the apex bank have seen us highlight these limitations on the part of the defaulting farmers with suggestions being made to the CBN to activate the risk-sharing structure put in place for the program and release funds accordingly to sustain activities and allow for needed recovery efforts in our agriculture sector.
Business
FCT Minister reveals how he would aggressively pursue revenue collection, tours infrastructure
Minister of the Federal Capital Territory (FCT), Barr. Ezenwo Nyesom Wike has advocated for increased revenue generation through taxes and ground rent payments in the FCT to fund impactful projects, stating the intent to aggressively pursue revenue collection within legal boundaries.
The FCT Minister made the disclosure in Abuja on Friday, March 28, 2025 during a rigorous tour of ongoing critical infrastructure projects slated for commissioning in May, coinciding with President Tinubu’s second anniversary in office.
The Minister’s itinerary included a comprehensive assessment of the 15-kilometer left-hand service carriageway of the Outer Southern Expressway (OSEX) from Ring Road 1 to Wasa Junction, Construction of the 16-kilometer one service carriageway of the Inner Northern Expressway (INEX) from Ring Road III to the Idu Industrial area connecting the Kubwa/Zuba expressway and the Abuja Division of the Court of Appeal office Complex in Dakibiu, Jabi District, and its access road from the Obafemi Awolowo Way which is is expected to be completed by September.
According to him “We are going to be very aggressive in our revenue drive to achieve more projects. When people complain that we are revoking C of Os, they need to understand that it’s from only payment of taxes that we will be able to carry out projects that will be meaningful, that will have positive impact on the lives of the people. Imagine when this road is completed, the impact it will have. It’s not something you can underestimate.
“So, we are appealing to our people. It’s not politics. It’s about being responsible and being responsive. Government has given you land for you to pay yearly annual ground rent for us to use for the development. So many people call me everyday, oh we see what you are doing. Can you extend it to our own area. Yes, we want to extend if the money is there. How the money will be there is only when you pay your taxes. So, we will be very, very aggressive within the limit of the law, in our revenue drive so that we can complete all the projects that we have started” he added.
On the progress of work across all project sites visited, the Minister expressed satisfaction with the pace and quality of work. He noted repeated visits to the INEX and commended the contractor’s progress, expressing belief in their assurance of meeting the May deadline.
According to the FCT Minister, “This is my 4th time, if I can remember very well of coming to this site. This project has been a headache for me. Like the contractor said, the job was awarded in 2014, taking us 11 years. That tells you, obviously the price can’tno longer be the same. So, when I came, there was price variation. I commend Salini Nigeria Limited on this particular project. I never believed that it would be actualized in May, but they are talking with authority and I believe them. The last time we came, we stopped at the back there but see where we are today, which means in the next few weeks, they would have completed the bridge. I’m happy with what we have seen,” stated the Minister.
The Minister emphasized the administration’s dedication to fulfilling its “Renewed Hope Agenda,” and stressed the importance of delivering dividends of democracy.
“How happy we would be in life that you made a promise and you fulfilled the promise. I have to thank Mr. President. This is really actually what we call Renewed Hope Agenda, that hope has come back to our people, and they are happy. Promises made, promises fulfilled and that’s all about dividends of democracy,” he said.
Barr. Wike reiterated the government’s commitment to building trust and confidence with contractors and the public, attributing current achievements to this approach. “You must create that level of confidence and that’s what we have done. Creating confidence in our people and the contractors. That is what is supposed to be and that’s why we are achieving what we are achieving today,” he concluded.
The National Progressives Hub (NPH), a support group for the ruling All Progressives Congress (APC), has trained over 50 women entrepreneurs running Micro, Small, and Medium-sized Enterprises (MSMEs) to enhance their financial inclusion and business growth.
The women, selected from NPH and other support groups, participated in the training held in the Asokoro area of Abuja on Tuesday.
The National Coordinator of NPH, Hon. Bukie Okangbe, stated that the event was part of activities to celebrate the 2025 International Women’s Day.
“It is a business clinic. We brought in experts and trainers to conduct the training, including facilitators from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This initiative is designed for APC women and every party member to celebrate Women’s Month. We also want women to be aware of government policies,” she emphasized.
Kingsley Ndimele, a Business Consultant and Financial Economist, noted that while businesses in Nigeria are performing fairly well, there is significant room for improvement, particularly in addressing policy gaps, access to information, and knowledge acquisition.
“I am here to train small business owners on how to grow and scale their enterprises. Although businesses in Nigeria are making progress, challenges persist due to policies, government intervention, and the business owners themselves.
“The average Nigerian entrepreneur has the potential to perform better if key issues such as policy framework, infrastructure, and knowledge gaps are addressed. Growing a business requires a certain level of knowledge capacity. If you lack that capacity, no matter how much funding you receive, you may not succeed,” he explained.
He also highlighted the issue of funding as a shared responsibility between the government and entrepreneurs.
“The Nigerian government has been supporting MSMEs through funding and capacity-building initiatives. However, the question remains: Are Nigerian entrepreneurs ready to maximize these opportunities? Do they meet the eligibility criteria?” he asked.
A representative of the Director-General of SMEDAN, Peter Adeshina, stated that the training aimed to educate small business owners on structuring their enterprises to access available opportunities.
“SMEs are critical to economic prosperity and growth, and our role is to support them. A business clinic is like a medical clinic—when you visit, you receive treatment, feel revitalized, and can then expand and succeed.
“Our objective here is to provide guidance on structuring businesses for growth. Currently, finance in Nigeria is costly due to high interest rates. However, there are measures SMEs can take to secure affordable loans and grants.
“For instance, formalizing a business—something as simple as registering it—can determine whether one can access opportunities or not. Business owners should also open dedicated business accounts to establish a credit history, making them more trustworthy to investors,” he advised.
He also expressed optimism that the training would enhance SMEs’ operations.
“At the end of this event, we expect SMEs to function more effectively. With the information provided, they will be able to restructure their businesses, abandon ineffective practices, and embrace growth.
“Accessing SMEDAN opportunities requires registration with the agency. Fortunately, SMEDAN has state offices nationwide where business owners can seek support. We anticipate that, after this exercise, more entrepreneurs will be better positioned for success,” he added.
Also, the Senior Special Adviser to the Minister of State for Industry, Trade, and Investment, Adeshile Deji, encouraged the trainees to engage in continuous capacity-building programs from relevant agencies to enhance their skills and business operations.
Over 1,500 residents have benefited from a Fidelity Food Bank outreach in Kabuga community, Dala Local Government Area of Kano state.
The Corporate Social Responsibility (CSR) initiative, executed in partnership with Misnoory Foundation, saw staff of the bank distribute essential food items to support people during the holy month of Ramadan.
Commenting on the distribution event, Divisional Head, Brands and Communications, Fidelity Bank Plc, Dr Meksley Nwagboh, emphasized the bank’s dedication to supporting its host communities through impactful projects.
“Social responsibility is at the heart of who we are as a bank. Our Fidelity Food Bank initiative is one of the way we drive social welfare in our host communities. The initiative was launched to support the vulnerable and alleviate the impact of hunger in the society as part of our contribution to Sustainable Development Goal 2, which aims to achieve zero hunger.
“Consequently, we have distributed more than 150,000 food packs at outreach events like this across the country since April 2023 when we launched the initiative. Our outreach in Kabuga is designed to support women, widows, children and the community with food items for the Ramadan season.”
On her part, the Founder, Misnoory Foundation, Maryam Isa Inuwa stated that, “The commitment of the foundation towards poverty alleviation and various humanitarian support to society’s most vulnerable members perfectly aligns with the Fidelity Bank initiative.
“Fidelity Bank is one of the major sponsors of our humanitarian outreaches to the needy in the society. The foundation is delighted to count on the bank as a long-standing partner.
“We seek to touch the lives of many people in need through our various humanitarian efforts across different communities and today, it is the turn of Kabuga community to benefit from the Fidelity Food Bank program”.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards.
It was also recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
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