Court Orders Kehinde Ogbor and Danium Energy to Pay N20.7bn to Union Bank, Grants Bank Possession of Assets

A Federal High Court in Lagos has directed petroleum marketer Kehinde Ogbor and his company, Danium Energy Services Limited, to pay Union Bank Plc N20.7 billion for failing to honor loans obtained under a settlement agreement.

Delivering the judgment, Justice Deinde Dipeolu also granted Union Bank exclusive possession of several high-value properties owned by Ogbor and his company. The assets include prime real estate in Ikoyi, Victoria Island, and the company’s head office on Victoria Island. The court instructed the Inspector-General of Police and other security agencies to assist in securing the properties.

The defendants, including Ajibola Bankole Adetutu, Garba Mohammed, and Lolag Sons (Nigeria) Company, had filed a counter-affidavit and counterclaim through their lawyer, Ikenna Emeh, arguing that the settlement agreement was void due to fraud, misrepresentation, undue influence, and economic duress. They also alleged that Union Bank imposed illegal charges, owed them N42.4 billion in excess deductions, and sought N25 billion in damages for alleged fraud and reputational harm.

Justice Dipeolu dismissed the defendants’ claims, ruling that the 2018 Memorandum of Settlement and Consent Judgment were valid and enforceable. He held that Ogbor and Danium Energy breached the agreement by failing to make required payments and authorized Union Bank to recover the debt by foreclosing and selling the mortgaged properties.