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Obat Petroleum In N1. 558, 214, 525. 79 Billion Debt Mess

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Federal High Court, Lagos, has ordered the Federal Ministry of Finance and Debt Management Office (DMO) to pay all monies and other payment  instruments  amounting to N1. 558, 214, 525. 79 billion accrued to Obat Oil Petroleum Limited as subsidy claims to Sterling Bank Plc.

The Court also restrained Obat Oil and Petroleum Limited, its agents, privies and any other person on behalf of the oil company, from dealing  any monies, instruments, sovereign debt notes and promissory notes standing in the company’s accounts, records and whatsoever, held with the Federal Ministry of Finance and DMO, to the tune of N1. 558, 214, 525.79 billion.
The court further ordered the Finance Ministry and DMO to disclosed on oath the total sum of money, funds,Sovereign Debit Notes (SDNs) either processed or yet to processed within purview of Petroleum Subsidy Scheme in their custody or possession or that may come into their possession or custody belonging to Obat Oil and Petroleum Limited for the further direction of the court.
The court presided by Justice Nicholas Oweibo, gave the directives while ruling in a mareva order application to preserve the monies and other financial instruments as subsidy payment, due to Obat Oil and Petroleum Limited by the Federal Ministry of Finance and DMO, filed by Sterling Bank and Petrocam Trading Nigeria Limited by their lawyer, Gbenga Akind-Peters of Temilolu Adamolekun Law firm.
The order, according to Justice Oweibo, will subsist till the determination of suit marked FHC/L/CS/1100/19, filed against Obat oil and Petroleum Limited by the Sterling Bank Plc and Petrocam Trading Nigeria Limited.
In urging the court to grant the mareva order, Sterling Bank Plc and Petrocam Trading Nigeria Limited, stated that the request for order was due to the failure of the Obat oil company to pay back credit facilities of N1, 558, 214, 525. 79 billion granted to it.
The plaintiffs in a 59 paragraph-affidavit deposed to by Segun Omosola, a litigation officer in the office of Temilolu Adamolekun Laws firm, stated that the oil after gotten allocation from the federal government through Petroleum Products Pricing Regulatory Agency (PPPRA), for importation of Premium Motor Spirit (PMS) approached Petrocam Trading Nigeria Limited to finance the important of the Petroleum product. Consequently, which the Petrocam applied to the bank for enhancement of its existing trade facility to accommodate the transaction of Obat oil and Petroleum Limited.
The deponent states that having considered the application Petrocam, the bank graciously granted the facility enhancement of $3 million USD, to accommodate the importation of the Petroleum product for the importation transaction of Obat oil through a joint venture transaction between the second plaintiff and Obat oil.
He also stated that for the proper management of the transaction, the second plaintiff and Obat oil entered into a service agreement on April 25, 2014, which enable the second plaintiff to utilize its credit facility with the bank for the benefit of Obat oil. Adding that Obat oil opened a collection account with the bank to receive the receivables on the sales and all payments from the Federal government. And based on this agreement, Obat oil applied to the bank at different times, for opening Form M and establishment of letters of credits facilities under the umbrella of the second plaintiff’s credit line. And that based on that agreement, the bank secured approval of the Central Bank of Nigeria, forms numbers, MF20140131150;   MF20140064023; MF20140149022; MF20140101134 and MF20140101100.
The deponent states further that upon confirming the authenticity and veracity of the letters of credits through its letter dated July 25 and 30 and November 25, 2014, to the Department of Petroleum Resources (DPR), the Petroleum product was eventually delivered to Obat oil’s storage facility and sold to the public I line with the extant regulation from PPPRA under Petroleum Support Fund (PSF) scheme being regulated product.
The deponent states that contrary to the agreement of the parties and consternation of the plaintiffs, Obat Oil diverted all monies paid by the Federal government representing accrued interest amongst others things over the transaction into account different from the collection account. The funds which ought to have been paid into collection account to reduce Petroleum’s indebtedness to the bank.
The deponent also states that despite several reconciliation meetings, Obat oil continues to perform acts to worsen the position of the collection account. And that upon investigation carried out by the plaintiffs, it was discovered that the funds were actually diverted for the personal use of the Obat oil’s Alter Ego (owner).
He also stated that despite several letters and agreement of parties, the Obat oil’s action now threaten the actualization of receiving the receivables as the defendant is currently making plans and has in fact perfected the plans to divert the promissory notes/sovereign debt notes excepted to be received from the Federal Ministry of Finance and DMO. Adding that the ‘res’  of the suit is in real and complete danger by being completely dissipated any moment by Obat Oil and unless the court intervenes, the plaintiffs will definitely be left in the lurch.
He also stated that it would be in the overall interest of justice to grant the orders as the defendants (Federal Ministry of Finance and DMO) will not be prejudiced by granting same.
The hearing of the motion on notice on alleged indebtedness has been adjourned till August 15, 2119.
     Culled://shybellmedia.com
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Ibukun Awosika’s Other Love

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Ibukun

 

Love for children naturally come with women. This is a fact.

 

However, there are women whose affection for children is exceptional and unexplainable.

 

Respected Ibukun Awosika, the Chairman of First Bank Nigeria and Chief Executive Officer of The Chair Center Group is such a woman.

 

A success story in several business fronts, the woman has found a way of effectively finding time for her other love, children.

 

Renowned for her women conferences, her undying love for children has also drawn her into the board of some primary schools. 

 

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FIRST BANK: TOWARDS REVIVING NIGERIA’S TEXTILE INDUSTRY

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By Chinyere Joel- Nwokeoma (NAN)

For many years, until the early 1980s, the Nigerian textile industry was the highest employer of labour, after the public sector. Sadly, the industry is in dire straits battling for survival in recent times.

Among the challenges that confronted the sector were policy inconsistency leading to closure of many textile companies occasioned by poor power supply, smuggling, poor access to finance and high operating cost, among others.

It is unarguable that the closure of many textile companies contributed to the rise in the country’s high unemployment rate, rising insecurity and other social vices.

It is against this backdrop that the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, recently lamented the country’s descent from being a textile giant to a mediocre player in the world economy.

Emefiele said Nigeria used to be home to Africa’s largest textile industry in the 1970s and early 1980s with the employment of over 450,000 people.

“The textile industry at that time was the largest employer of labour in Nigeria after the public sector, contributing over 25 per cent of the workforce in the manufacturing sector.

“The industry was supported by the production of cotton by 600,000 local farmers across 30 of Nigeria’s 36 states.

“This sector supported the clothing needs of the Nigerian populace, as our markets were filled with locally produced textiles from companies such as the United Textiles in Kaduna, Supertex Limited, Afprint, Texlon, Enpee and Aswani Mills, among others.

“In addition, the cotton growing sector has gone dead, thereby depriving thousands of smallholder farmers the chance to earn a living.

Furthermore, a large proportion of our clothing materials today are imported from China and countries in Europe,” Emeifele stated.

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It is against this background that First Bank of Nigeria Ltd, in line with its celebratory 125th anniversary , themed, “Woven into the Fabric of Society”, on Oct. 2 commemorated the country’s independence with a locally made textile attire.

Specifically, the bank set aside Oct. 2 to have all staff wear a locally made textile attire adorned in its 125 anniversary logo and over 18,000 staff across the bank and FBN Holdings participated.

The bank in a statement attributed the initiative to moves to celebrate the country’s 59th Independence anniversary and at the same time support the textile industry.

“The native attire fashion statement by FirstBank and the FBN Holdings Group is rooted in our trust in the diverse opportunities the textile industry provides.

“And indeed its contribution to national growth and development, vis-à-vis the job opportunities, youth and women empowerment, as well as the entrepreneurship driven influence its creates cannot be overemphasised.

“The bank is indeed honored to have been woven into the Fabric of Society in the last 125 years and is committed to keep promoting activities and opportunities that contribute to the growth of the textile industry.” it added.

Apart from the above intitative, FirstBank also provide access to market and provide opportunities for entrepreneurs in the Small Medium Scale Enterprise (SMEs) of the fashion industry with an initiative tagged Fashion Souk.

The bank partners with Eventful Nigeria Ltd with Fashion Souk, a platform that creates an opportunity for players in the fashion industry to exhibit and sell their wares to the thousands of event participants.

Textile Industry

FirstBank Chairman, Ibukun Awosika The Octopus News

The bank also in a bid to ensure sustainability of the industry recently introduced fashion design loan specifically designed to offer financial support to the participants in the textile industry.

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The bank’s fashion design loan with a single obligor limit of up to two million naira is targeted at tailors, dressmakers and traders in clothing accessories with no tangible collateral required.

Textile Industry

CEO, FirstBank, Adesola Adeduntan

To be eligible for the loan, applicants must have been in line of business for a minimum of three years.

Commenting on the development, Mr Moses Igbrude,  Publicity Secretary,  Independent Shareholders Association of Nigeria (ISAN), described the initiative as a wonderful concept.

“I hope those in the local textiles value chain will key into it and take advantage of this initiative.

“FirstBank should also ensure that the concept is properly communicated to the larger audience to ensure more patronage of locally made textile,” Igbrude said.

He noted that the Federal Government on its part should encourage institutions that are supporting our local industries by way tax incentives.

Also speaking, Mr Shehu Mikail, National President, Constance Shareholders Association of Nigeria, commended the bank’s support for local fabric and the textile industry.

Mikail said that the initiative would boost the morale of interested bodies who would like to venture into local fabric in promoting our culture to the world.

He said that the bank should focus on the fashion designers who would be ready to promote Nigerian mode of dressing to meet the world class in fashion design.

“This will help in promoting Made in Nigeria fabric and it will also encourage an interested investor to venture into textile industry business and this will tranform our economy,” Mikail stated. (NAN)

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UBA Honours Kola Jamodu after 12 Years of Service; Assures of Solid Governance Processes

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Kola Jamodu

 

Pan African financial institution, United Bank for Africa (UBA) Plc has assured investors and shareholders of her continuous adherence to solid corporate governance processes as the bank honoured its ex-director, Chief Kola Jamodu.

In a glitzy cocktail event and dinner in his honour at the Transcorp Hilton Hotel, Abuja, on Thursday, Jamodu was celebrated for his service on the bank’s board for 12 years as a non-Executive director. Accolades were poured on him, for his remarkable contributions to the group over the period that have helped solidify the bank’s footprints in its many countries of operations. 

Speaking at the event, UBA’s Group Chairman, Tony O. Elumelu, commended Jamodu’s efforts at contributing towards the strong corporate governance policies which UBA currently boasts of.

He said, “Chief Jamodu is a great Nigerian, a respected man and a great non-executive director to UBA. He has been wonderful and instrumental to today’s current standing of UBA across our 20 presence countries in Africa as well as in America, United Kingdom and in Paris. He was on the board of UBA for 12 years, and in line with corporate practices, which says at the end of 12 years, you retire from the board, he is retiring and we are here to celebrate his contribution to the bank.”

While reeling off some of Jamodu’s many achievements, Elumelu said, “He has been extremely supportive to UBA; he served as Chairman of Board Risk Committee, and he has all the experience – a chartered accountant, extremely astute, chairman of Nigerian Breweries, chairman of PZ, chairman of Nutricima; former minister of industry; a great tax expert, financial and management expert and UBA has been extremely lucky to have him on our board for 12 years. So to him and his family, we say thank you for all the support, for the teachings, for being generous with knowledge and for asking those hard questions that made us solidify our governance processes here at UBA.”

On his part, the Group Managing Director/Chief Executive Officer, Kennedy Uzoka, explained in fine details the impact that Jamodu’s experience has had on the bank, adding that he was able to help UBA navigate through some challenges that have now made the bank come out even stronger.

He said, “Chief Kola Jamodu is a very astute financial manager with diverse experience; he is someone that has helped us as managers to look into areas that we may not have looked into. During his time, he helped us to navigate critical issues, and now UBA America is a bank on its own as is UBA UK. He was always asking the right questions which others would have missed, and this is what helped us be where we are today. He started with us when we had just a few countries of operation and now today, UBA is operating in 23  countries. Kudos to Jamodu, he will be missed.”

Jamodu, who attended the event with his beautiful wife Funmilayo, thanked the bank for the opportunity given to him to contribute to the growth of the UBA Group, adding that as a board member one should be able to have an impact in the way things are being done, in governance principles and much more.

Speaking on his most memorable achievements on the board, he said, “I am very happy today that loan loss provisioning in UBA is one of the lowest because of the way we have handled those issues. My door is quite open and I will continue to offer what I can to ensure that this bank which I am still very much a part of continues to flourish.  My advice to the board, is that they should continue to ensure good succession planning which is very important.”

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