Union Bank Secures ₦20.7 Billion Judgment Against Oil Marketers

 In a decisive ruling, a Federal High Court in Lagos has awarded ₦20,732,299,999.21 in favour of Union Bank Plc against petroleum marketer Danium Energy Services Limited and its Chief Executive Officer, Kehinde Elliot Ogbor, demanding full payment and granting the bank exclusive rights over pledged properties.

Presiding over the matter, Justice Deinde Dipeolu affirmed that the bank’s loan agreement, supported by a Memorandum of Settlement dated March 6, 2018, and a consent judgment from April 25, 2018, were binding contracts. The court found that Danium Energy and Ogbor had defaulted on their obligations and ruled that the bank could enforce recovery through property seizure.

The judgment grants Union Bank possession of several high-value real estate assets located in Lagos, including a plot at Banana Island Foreshore Estate, Ikoyi; a site on Akin Ogunlewe Street, Victoria Island; and the company’s head office at Anifowoshe Street, Off Adeola Odeku Street, Victoria Island.

Union Bank had filed the suit to obtain interpretation and enforcement of contractual obligations arising from multiple credit facilities extended to the oil marketing firm. Counsel for the bank, Mr. Adetunji Adeniyi-Adedoyin, told the court that despite repeated restructuring efforts, the defendants failed to repay the debt, thereby triggering enforcement actions.

In their defence, Danium Energy and Mr. Ogbor contended that the settlement instruments were vitiated by fraud, misrepresentation, undue influence and duress, and also claimed that the bank had altered terms without proper notification. They sought to set off over ₦65.72 billion against the purported indebtedness, but the court dismissed these claims as lacking merit.

Justice Dipeolu observed that the defendants did not provide credible evidence to substantiate any of the allegations of coercion or contract invalidity. “The obligations were voluntarily undertaken,” the judge held, going on to dismiss the counterclaim and grant all reliefs sought by the bank.

Legal practitioners are describing the decision as a landmark for credit enforcement in Nigeria’s banking and oil-marketing sectors. An industry analyst noted that it sends a strong message to borrowers that contractual compliance is non-negotiable and that banks will pursue defaults through the courts.

For Union Bank, the ruling could significantly boost its efforts to reduce exposure to non-performing loans and support its ongoing balance-sheet recovery strategy. While the process of asset realisation remains subject to further legal steps and enforcement, the judgment brings clarity to the bank’s recovery path.

Commenting on the ruling, the bank said it “welcomes the court’s decision and remains committed to transparent, sound credit administration and the rule of law.” It added that it will pursue the recovery process in accordance with legal and regulatory requirements.

The oil marketing sector has faced liquidity and regulatory headwinds in recent years, with foreign-exchange pressures and margin squeezes affecting ability to service debt. Analysts suggest the judgment may prompt other lenders to tighten credit risk controls and collateral monitoring in the sector.

A commercial-law expert, Mrs. Gloria Nwachukwu, said the ruling reinforces the sanctity of contracts and enhances investor confidence. “When courts uphold commercial obligations consistently, the business environment improves. This case sets a precedent,” she said.

While the judgment favours the bank, practical recovery of the debt and the assets pledged will depend on the processes of possession and sale of the secured properties. Observers note that although enforcement often takes time, the clear judicial backing strengthens the bank’s recovery position.

In sum, the Federal High Court’s decision affirms Union Bank’s right to recover the outstanding debt from Danium Energy and Mr. Ogbor, underlining the legal consequences of defaulting on sizeable credit facilities in Nigeria’s petroleum-marketing landscape. The outcome is expected to influence lending behaviour and credit-management practices across the banking industry.