Connect with us

Business

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

Published

on

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
Share
Also Read:  How Nigerians Wasted Billions On New Plate Number
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Ugo Set To Take Music Industry By Storm

Published

on

Ugo

 

German-based Nigerian music artiste, Ugo, has started the year with a bang, as he recently dropped a new single titled ‘Life Is Banana’.

The song is currently receiving positive reviews among Afrobeat music lovers.

Off the current rave from ‘Life Is Banana’ single, he has also revealed plans for future collaborations.

Also Read:  I dont have anything to hide-Saraki

Known to have consistently dropped singles since making his debut in 2014, the Ihitenansa, Imo State-born artiste is proud of his roots, as he maintains his real name, “Ugonna” and plays a vibe which crisscrosses between local and international vibes.

Already working on an RnB song likely to be released on 14 February, there is no doubt that lovers of good music will be hearing more from the artiste this year through his thrilling melody and sensational rhythm that has seen him maintaining his consistency.

Share
Continue Reading

Business

Galaxy Of Stars As Adenuga, Otedola, Wigwe Shine

Published

on

goods

 

The trio of Mike Adenuga, Femi Otedola, and Herbert Wigwe share one thing in common, they are excellent in their individual businesses.

Over the years, Adenuga has turned Globacom into one of the leading telecommunication outfits in Africa, while Otedola has gone from being a success in the oil and gas industry to forging new frontiers in the energy industry.

Mike

Otunba Mike adenuga, CEO Globacom Limited

On his part, Wigwe has led Access Bank from a mere middle-level bank to an enviable financial institution providing support for the most elitist businesses.

Also Read:  P+ Measurement Services Partner Media Monitor Ghana to Co-Host  AMEC Measurement Month in Ghana

Such is the achievements of these men that they couldn’t have gone unnoticed.

philanthropist

The business and personal excellence of the trio got celebrated recently when they picked up medals at the prestigious Thisday Award presentation.

While Adenuga was celebrated as Entrepreneur of the Decade, his firm, Globacom won the brand category. Otedola and Wigwe were celebrated with the former emerging Philanthropist of the Decade. Access Bank’s Wigwe emerged Banker of the Decade as his financial institution.

Share
Continue Reading

Business

FIRSTBANK WINS BEST MOBILE BANKING APP AND FASTEST GROWING RETAIL BANK AWARDS

Published

on

FIRSTBANK

First Bank of Nigeria Limited has been named 2019 “Best Mobile Banking App” and “Fastest Growing Retail Bank” winner  by Global Business Outlook. The Global Business Outlook Award recognises and rewards excellence in business in companies across the world, both in the public and private sectors. The award rewards innovation, creativity and the drive to create value.

FirstBank earned the Fastest Growing Retail Bank recognition because of its leading role in promoting financial inclusion in the country, a drive which has resulted in its 44,000 Agent Banking network designed to complement the provision of bespoke financial services at its over 750 branches nationwide.

It also won the Best Mobile Banking App award thanks to its Firstmobile banking app’s capability at performing a wide range of financial transactions in a safe, adaptable, futuristic and efficient manner. The user friendly app is widely renowned for its ease of navigation and state of the art security features to mitigate risk against fraud.

In the course of 2019, FirstBank bagged numerous awards across various areas of its business operations. The awards comprise Women Empowerment Category – Sustainable Banking Awards by CBN Bankers Committee, Best Private Bank in Nigeria 2019 by Global Finance Magazine and World Finance Magazine respectively; Best Process Automation Initiative, Application or Programme by Asian Banker International Excellence in Retail Financial Services; Best Banking Brand Nigeria 2019 by Global Brands Magazine; Best Retail Bank in Nigeria by Global Banking and Finance Review and Asian Banker International Excellence in Retail Financial Services Awards respectively; Cashless Driver: Highest Volume in Bill Payments and Highest Transaction Volume in Real-Time Payments by CBN Electronic Payments Incentive Scheme (EPIS) – Efficiency Awards; Long Service Corporate Award by Nigerian Economic Summit Group; Best Financial Inclusion Program – Nigeria 2019 and Bank of The Year – Nigeria 2019  by International Investor, amongst many others.

Also Read:  Humbling: Emeka Ike Slams Segun Arinze***Say Arinze Doesn’t Have A BSc, He Is Not Fit To Be In Power In AGN

Speaking on the awards, Folake Ani-Mumuney, the Bank’s Group Head, Marketing & Corporate Communications said, ”We appreciate the recognition of these awards by the respective awarding bodies. The awards are dedicated to all our customers across the globe as their continued patronage of our services is appreciated. We remain steadfast and would not rest on our laurels at rendering bespoke financial services tailored to meet the financial needs of our valued customers, irrespective of where they may be.”

 

About FirstBank

First Bank of Nigeria Limited (FirstBank) is the premier Bank in West Africa with its impact woven into the fabric of society. The Bank which has been sustaining its development-oriented services for over 125 years as the region’s foremost financial inclusion services provider, offers a comprehensive range of retail and corporate financial services through more than 44,000 business outlets to over 17 million customer accounts.

As a national icon and an international player, FirstBank is one of the most enduring financial services brands in Africa with international footprints extending through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.

FirstBank has been nimble at promoting a digital economy in Africa and has issued over 10 million cards, the first bank to achieve such milestone in Nigeria. FirstBank’s financial inclusion and cashless transaction drive have resulted in over 228 million users on its USSD banking service through the nationally acclaimed *894# banking service and over 3.4 million users on its Firstmobile platform.

Also Read:  Land Use Charge: LSG Gives Clarity At A Stakeholder Meeting

Since its establishment in 1894, FirstBank has consistently built relationships with customers, focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership. Over the years, the Bank has led the financing of private investment in infrastructure development in the Nigerian economy by playing key roles in the Federal Government’s privatisation and commercialisation schemes. With its global reach, FirstBank, one of Africa’s most sustainable financial services brands, provides prospective investors wishing to explore the vast business opportunities that are available in Nigeria, an internationally competitive world-class brand and a credible financial partner.

FirstBank has been named “Most Valuable Bank Brand in Nigeria” six times in a row (2011 – 2016) by the globally renowned “The Banker Magazine” of the Financial Times Group; “Best Retail Bank in Nigeria” for eight consecutive years (2011 – 2018) by the Asian Banker International Excellence in Retail Financial Services Awards and “Best Bank in Nigeria” by Global Finance for 15 years. Our brand purpose is to always put customers, partners and stakeholders at the heart of our business, even as we standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in consonance with our brand vision “To be the partner of first choice in building your future”. Our brand promise is to always deliver the ultimate “gold standard” of value and excellence. This commitment is anchored on our inherent values of passion, partnership and people, to position You First in every respect.

Share
Continue Reading

Facebook

Trending

Copyright © 2019, February13 Media