Connect with us

BUSINESS

Firm drags Union Bank to court over N6.7bn

Published

on

A Lagos based oil and gas firm, Petrocam Trading Nigeria Plc., has dragged Union Bank of Nigeria Plc (UBN). before a Lagos High court over a breach of contract. The firm slammed a N6.7 billion suit against the lender.

In the case before the High Court in Lagos, Petrocam’s lawyer, Barrister Gboyega Oyewole (SAN) contended in the filed statement of claim that Union Bank flouted the joint venture agreement entered with the plaintiff to jointly collaborate in opening letters of credit confirmation lines for the importation of petroleum products.

The plaintiff averred that it had sometimes in 2014 secured an import finance facility from Union Bank for importation of petroleum products and raised letters of credit to utilize this import facility. The initial facility of $45 million was increased to $100 million. The company duly provided bank guarantees for the facility. There was also an understanding that the facility would be repaid from sales proceeds and oil subsidy reimbursements.

Under the agreement, Union Bank would secure foreign exchange for the company to enable it finance its international oil purchases. The company however claimed that the bank defaulted by failing to secure forex from the CBN during the 2014/.2015 period when 90 percent of the company’s import transactions were being conducted thereby causing the company to suffer huge losses.

It further claimed that out of the $76 million it required to finance the transactions covered by the agreement, Union Bank was only able to produce about $22 million, meaning that Petrocam could not complete a large percentage of the deals, leading to huge profit loss.

The company contended further that Union Bank failed to bid for foreign exchange when the exchange rate was between N155-160 to the dollar but only bided when the rate had increased to N288-320 per dollar, thereby deliberately inflating the costs of maintaining the dollar credit facility.

In light of these claims, Petrocam is seeking a declaration that Union Bank’s breach of duty under extant laws resulted in unlawful debits and exorbitant interest charges on the company’s current accounts with the bank, and an order compelling the bank to reverse all wrongful debits on the company’s current account.

It is asking the court to compel Union Bank to credit the company’s current account to the tune of N6.7 billion plus interest on the sum at the rate of 22% per annum from commencement of suit to date of judgement, and thereafter &% per annum from date of judgement to final liquidation of the sum. It is also seeking N50 million in general damages.

Continue Reading
Click to comment

Leave a Reply

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

BUSINESS

Fidelity Bank doles out N16m to 13 customers

Published

on

L-R: Divisional Head, Operations, Fidelity Bank Plc., Martins Izuogbe; Baale of Dankaka and N1 Million GAIM 3 Promo Winner, Alhaji Oluwa Kareem Amodu; his wife, Alhaja Amodu; Regional Bank Head, Apapa, Fidelity Bank Plc, Jude Monye at the 3rd Monthly Prize presentation ceremony of the Fidelity Get Alert in Millions Promo Season 3 (GAIM 3) held at the Fidelity Bank Trinity, Apapa Branch. Lagos ….yesterday.

Fidelity Bank Plc on Tuesday splashed 13 customers with N16 million under the Get Alert in Millions Savings (GAIM) season three initiative.

Mrs Chijioke Ugochukwu, the bank’s Executive Director, Shared Services and Product, stated this at the third monthly prize presentation in Lagos that the promo was an initiated aimed at boosting financial inclusion and saving culture.

Ugochukwu said that the bank, through the GAIM, had made significant impact on its customers.

She said that the monthly draw produced 13 cash winners and 18 consolation prizes, comprising refrigerators, generators and television sets.

Ugochukwu said that the bank had also given out N50 million and 54 consolation prizes under the GAIM season three initiative.

According to her, N60 million remains outstanding for grab by lucky customers in the course of the promo, adding that the bank has also earmarked N110 million to be won by customers for the GAIM season three initiative.

Ugochukwu further disclosed that the bank had given N2.67 million worth of airtime to about 1,964 customers, comprising of first 100 accounts opened weekly.

She said that the savings promo allowed the bank to go into nooks and crannies of the country to enlighten people on financial inclusion.

Mr Richard Madiebo, the bank’s Divisional Head, Retail Banking, said that the bank had made banking easy through the promotion.

Madiebo called on Nigerians to take advantage of the initiative to open account with Fidelity Bank, assuring customers that they had the chance of winning N1 million, N 2 million and more.

Alhaji Oluwakareem Amodu, the Bale of Dankaka, Ajeromi Ifelodun Local Government Area of Lagos State, who won N1 million lauded the bank for the initiative, saying that he opened the account with N1, 000, describing he promo as genuine.

Mr Rahman Yusuf, a star prize winner of N 2, appreciated the bank for its kind gesture of instituting the promo.

“I want to say a very big thank you to Fidelity Bank for this opportunity. I did not believe in it until I got here and confirmed that I won,” Yusuf said.

Yusuf said he opened the account with zero balance..(NAN)

Continue Reading

BUSINESS

AMCON seeks buyers for Polaris Bank

Published

on

The Asset Management Corporation of Nigeria (AMCON)  is  seeking new investors to take over nationalised lender, Polaris Bank after elections next month. It is also taking stock of the bank’s assets ahead of the sale, its spokesman, Jude Nwauzor, said yesterday.

“The election season has slowed down things,” Nwauzor, said.

Nigerians will vote on February 16 in a presidential election where incumbent Muhammadu Buhari is seeking a second term.

“We would advertise for Expressions of Interest from investors after elections and commence the sale process,” Nwauzor said.

Some of Nigeria’s banks have faced tough times since low oil prices put pressure on their business of lending to the oil and gas industry. The country emerged from a recession in 2017 but economic growth remains sluggish and this has weighed on credit growth.

Polaris Bank was set up last year to take over the assets of Skye Bank which collapsed and had its operating licence revoked by Nigeria’s central bank.

Polaris was then transferred to the state-owned bad bank for sale to investors. AMCON has previously sold three other nationalised banks.

The AMCON spokesman said the bad bank was seeking to recover debts owed to Polaris that were non-performing and had asked for proposals on repayment.

AMCON was set up in 2010 to take on non-performing loans from banks as part of the country’s efforts to resolve a financial crisis at that time.

Continue Reading

BUSINESS

CBN warns against rising debt, retains rate at 14%

Published

on

All 11 members of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) yesterday, voted to retain the Monetary Policy Rate (MPR) at 14 percent and other key economic parameters in its first meeting in 2019.

The Governor of CBN, Godwin Emefiele, who made this disclosure in a communique read at the end of the meeting in Abuja, warned against the nation’s rising debt profile, even as he revealed that the nation’s foreign reserves now stand at $43.28 billion.

According to Emefiele, the Committee deliberated on external borrowing, where it noted the increase in debt level and thus called  for caution.

He said the debt level, if not checked, could rapidly hit the pre-2005 Paris Club level. The Governor said that Committee recommended the Federal Government to sustain the pace towards addressing infrastructure deficit in Nigeria.

On monies being paid by the Finance Ministry in collaboration with the Debt Management Office (DMO) to the oil and petroleum marketers, Emefiele said there was an agreement that the banks would halt interest charges from July 2017 to date on loans they gave oil marketers.

“So, its an agreement we have and any bank who refuses to do so, the petroleum marketer through his association should please inform the Central Bank”, he said.

On output, the CBN Governor said the real Gross Domestic Product (GDP) grew by 1.81 per cent during the third quarter of 2018 from 1.5 per cent during the second quarter of 2018.

“The services and agricultural sector continued to drive output growth. However, the persistence of herdsmen attacks on farmers, cattle rustling and flooding in parts of the country affected agricultural and livestock output.

“The output for growth however remains fragile as the late implementation of the 2018 budget and the residual impact of flooding and security challenges constituted headwinds to growth.

“The committee therefore believes that effective implementation of the 2018 capital budget and the Economic Recovery and Growth Plan and improvements in the security situation and continued stability in the foreign exchange market will enhance aggregate demand and growth”, he added. 

The communique further noted that the committee observed that the near-term risk to inflation remains the impact of flooding on agricultural output, insecurity on food producing belts of the country, exchange rate pass through to inflation due to weakening of oil price and campaign related spending towards the 2019 general election.

On the MTN penalty, he said: “I am glad to tell you in November we held a round of meetings with MTN officials even from South-Africa and by December we concluded those engagements and the matters were resolved. It resulted in notional I repeat it is not a fine, not a penalty,  reversal of $53million amounting to about N19.5billion and this amount has since been paid by the MTN and terms of settlement of the matters have already been lodged at the Nigerian court”.

On the 41 items restricted from foreign exchange, he said the economic department of the CBN together with Economic and Financial Crimes Commission (EFCC) would investigate any company or any individual suspected of bringing these items either through any border or through smuggling of any means for money laundering and economic sabotage.

Continue Reading
Advertisement

Facebook

Advertisement
Advertisement

Trending