A Federal High Court in Lagos has ruled in favour of Union Bank Plc, awarding the bank N20,732,299,999.21 against petroleum marketer Kehinde Elliot Ogbor and his company, Danium Energy Services Limited.
Delivering judgment in Suit FHC/L/CS/1905/2023, Justice Deinde Dipeolu directed Union Bank to take exclusive possession of all properties pledged as collateral for the loan. These include high-profile real estate assets in Ikoyi, Banana Island, and Victoria Island, as well as Danium Energy’s head office on Anifowoshe Street, Victoria Island.
Union Bank had approached the court to enforce a Memorandum of Settlement dated March 6, 2018, and a Consent Judgment of April 25, 2018, claiming the defendants had failed to meet their obligations. The bank argued that the settlement, alongside personal guarantees executed by Ogbor and Danium Energy, created legally binding obligations, and that the defendants’ default triggered the bank’s statutory right to foreclose on the pledged assets.
The bank also sought court approval for police and security assistance to enforce possession if necessary, aiming to recover the debt immediately and sell the collateral properties.
Ogbor and Danium Energy, however, filed a joint counter-affidavit and counterclaim, arguing that the settlement and judgment were voidable due to alleged fraud, misrepresentation, undue influence, and economic duress. The defendants claimed that Danium Energy had fulfilled its obligations under a 2019 offer letter, including repayment through the crystallisation of a Keystone Bank guarantee and delivery of petroleum cargo to an off-taker. They also sought refunds for amounts they alleged were wrongfully demanded by Union Bank.
The counterclaim included requests for damages, citing conspiracy, fraud, and injury to reputation, and demanded the return of all collateral securities, including the properties and the vessel MT Elohim.
After reviewing submissions from both sides, Justice Dipeolu dismissed the defendants’ counter-affidavit and counterclaim entirely, ruling that Union Bank was entitled to all reliefs sought. The judgment allows the bank to immediately liquidate the outstanding debt and take possession of the pledged properties for sale.