Court orders Ogbor to pay Union Bank N20.7bn and grants the bank ownership of prime Lagos properties after breach of loan settlement

Court orders Ogbor to pay Union Bank N20.7bn after a Federal High Court sitting in Lagos ruled that the petroleum marketer and his company, Danium Energy Services Limited, defaulted on a settlement agreement signed with the bank.

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In a judgment delivered by Justice Deinde Dipeolu, the court also granted Union Bank exclusive possession of several prime Lagos properties belonging to Ogbor and his firm, including luxury assets in Banana Island, Ikoyi, and Victoria Island.

The affected properties include Plot 13, Zone R, Federal Government Layout, Banana Island Foreshore Estate; Plot 197, Victoria Island Annex (now Plot 325, Akin Ogunlewe Street, Off Ligali Ayorinde Street); 3A, Bose Enemoh Close, Ikoyi; and Danium Energy’s head office on Anifowoshe Street, Victoria Island.

Union Bank had filed suit FHC/L/CS/1905/2023 through its counsel, Adetunji Adeniyi-Adedoyin, seeking to enforce a Memorandum of Settlement executed with the defendants on 6 March 2018.

The bank urged the court to interpret the agreement and compel repayment of N20,732,299,999.21 — the balance outstanding as of 24 July 2023.

After hearing both sides, Justice Dipeolu held that the Memorandum of Settlement and the 2018 Consent Judgment were valid, binding, and enforceable.

The court found that Ogbor and Danium Energy breached the agreement by failing to make scheduled payments, entitling Union Bank to recover its funds and enforce the collateral securities.

The Court orders Ogbor to pay Union Bank N20.7bn ruling also authorised the bank to foreclose and sell the mortgaged properties to recover the debt, directing the Inspector-General of Police and other security agencies to assist with possession and enforcement.

The defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, had argued that the settlement was obtained through fraud, misrepresentation, and economic duress.

They counterclaimed that Union Bank owed them N42.4bn in excess deductions and sought N25bn in damages.

Justice Dipeolu, however, dismissed their counter-affidavit and counterclaim, describing them as baseless and lacking in merit.

The court consequently granted all the reliefs sought by Union Bank, affirming its legal right to recover the outstanding debt and assume control of the listed properties.

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The judgment marks a decisive victory for the lender in its long-running dispute with Danium Energy, reinforcing the enforceability of loan settlements within Nigeria’s banking sector.