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Asset management Corporation of Nigeria AMCON has renewed its legal battle against Mobil workers (EKET) Multipurpose co-operative,in order to recover a debt of N14,733,502,334.06

The plaintiff, AMCON is a body established by an Act of the National Assembly of Nigeria to assist eligible financial institutions to efficiently acquire or dispose of eligible bank assets in accordance with the provisions of the Act, amongst others.

 

Mobil workers (EKET) Multipurpose co-operative society Limited, is a Multipurpose Cooperative Society registered under the Laws of the Federal Republic of Nigeria and Cross-River State of Nigeria.

 

According to amended statement of claim granted pursuant to order of the court dated 4th of December,2023 and filed before the court by a Lagos Attorney on behalf of AMCON before a Federal high court in Lagos,the Plaintiff avers that in 2012, it acquired and took over the non-performing loan of the Defendant with United Bank of Africa Plc., the “Bank”, pursuant to its powers under the Asset management Corporation of Nigeria Act 2019.

 

AMCON avers that prior to acquiring the Defendant’s loan, the Bank granted upon request a #7, 000,000,000,00 (Seven Billion Naira) Term Loan facilities to the Defendant to finance the personal need of their members.

 

The security for the facilities was:

Irrevocable domiciliation of all the Defendant’s members’ monthly contributions and deduction by Mobil Producing Nigeria Unlimited-the parent company of the Defendant, to be paid to the Bank.

The Defendant duly accepted the facilities by its board resolutions held on the 15th September, 2007 and 11th March, 2008.

The Defendant made a complete drawdown of the N7 billion availed it by the “Bank” for the purposes for which it was disbursed.

One of the terms in the accepted offer letter was that the Defendant would forward to the “Bank” a letter to its parent Company-Mobil Producing Nigeria Unlimited,instructing it to irrevocably domicile monthly contributions/deductions of the Defendant with the “Bank” until the entire sum advanced is completely paid off.

Pursuant to this agreement above,the Defendant duly instructed the Pay master of the parent Company-Mobil Producing Nigeria Unlimited to pay directly to the “Bank” all deductions/contributions of its members which said letter was duly acknowledged by the parent company -Mobil -Producing Nigeria Unlimited.

The Parent Company failed to carry out the instruction by domiciling the deductions/contributions of members of the Defendant as conveyed in the letter dated the 14th December, 2007 and 11th March, 2008 as agreed between the parties leading to the Defendant’s multiple defaults in its monthly interest and half-yearly principal repayment of the facility disbursed.

The Plaintiff avers it has cause to believe that the Defendant’s company failed to make the necessary payments because the Defendant’s surreptitiously withdrew the said instruction which explains why the anticipated payments ceased.

The tenor of the facility was for five years,while the defendant was to make

half-yearly repayment on the principal and interest serviced monthly.

 

The defendant by its letter dated 15th September,2007 and 10th March, 2008 authorized the ‘Bank’ to exercise a right of Lien over its money held in another account with the bank in the event of default.

The Plaintiff avers that it was a term of the facility among other terms that the “Bank” reserves the right to call in the facility if the Defendant fails to settle as and when due any outstanding amount owed to the Bank.

It was also a term of the facility that the repayment of the availed sum shall be monthly deductions from the Defendant’s members’ salaries and inflow from investments of the Defendant to be paid directly to the Bank.

The Defendant bought properties and shares of various Companies with the funds availed it by the Bank and kept same with various stock broking Companies.

However,AMCON discovered that the Defendant purchased various stock broking companies.It discovered that the defendant purchased various shares to wit: FCMB, UBA PLC, Access Bank, AFRINSURE, First Bank of Nigeria Holding Company, Etisalat, and many others.

The Bank was constrained to write several correspondences to the Defendant on the need to adequately fund its account and the consequences thereof which could make the entire facility liable to be recalled.

When it became obvious to the Bank that the Defendant was determined to deliberately breach vital terms of the facility, the Bank in line with the offer letter called-in the entire facility by its letter dated the 17th September 2009.

Despite several demands made by the bank on the defendant,the defendant refused and or otherwise neglected to fulfill its obligation to the bank.

Instead of paying down on the entire facility as demanded the Defendant wrote the Plaintiff via its letter dated the 13th October, 2009 requesting that the facility be restructured.

The Bank via its letter dated 19th October, 2009 rejected the application of the Defendant for a restructuring of the facility and demanded for the immediate repayment of the facility.

The Plaintiff avers that the Central Bank rate at the relevant period was 22.5%inclusive of additional to other penal charges for default on repayment a rate which is public knowledge and of which the Defendant had knowledge and or was deemed to know.

By banking custom and practice, the Bank is entitled to continue to charge interest on the sums owed by the Defendant until same is fully repaid. I am aware that the parties to the transaction already agreed on the application rate to be charged on the facility.

The Defendant also operates as a thrift and credit Society interest and other fees like the Plaintiff.

Whereof,the Plaintiff claims against the Defendant as follows:

Judgment against the Defendant in the sum of #14, 733, 502, 334.06(Fourteen Billion, Seven Hundred and Thirty-Three Million, Five Hundred and Two Thousand, Three Hundred and Thirty-Four Naira and Six Kobo)being outstanding sum owed by the Defendant to the Plaintiff as of 4th April, 2022.

Interest at the rate of 14%Per annum from the 4th of April, 2022 until Judgment is delivered in this case.

Interest at the rate of 25% per annum from the date of Judgment is delivered till the final liquidation of the entire judgment debt.

General Damages in the sum of N500, 000,000.00 (Five Hundred Million Naira)

Cost of this action.

The case has been adjourned till February 19,2024 for hearing.

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Business

Baba Adinni and Iya Adinni: Harmony Gardens Chairman and Wife Inducted into Spiritual Roles

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In a momentous occasion of spiritual significance and community recognition, the Chairman of Harmony Gardens and Estates Development LTD, Hon. Dr. Saheed Audullahi Mosadoluwa, popularly known as Mr. Ibile, and his wife, Hadjia Aishat Adebimpe, were recently installed with revered titles at an event hosted by the Al-Irshad Islamic Foundation.

 

Hon Saheed Mosadoluwa Ibile inaugurated a multi-billion naira ultra-modern Central Mosque at Ibeju-Lekki immidiately after he got recognized by the West Africa Islamic Council as the AL Mujaddid in Rabbat, Morocco.

 

According to popular Muslim tradition, the term refers to an individual who emerges at the turn of each century in the Islamic calendar to rejuvenate Islam, purging it of extraneous elements and restoring it to its original purity. In contemporary times, a mujaddid is regarded as the preeminent Muslim figure of a century.

 

The concept of Mujaddid is based on a hadith (a saying of Islamic prophet Muhammad), recorded by Abu Dawood, narrated by Abu Hurairah who mentioned that Muhammad said:

 

Allah will raise Mujaddid for this community at the end of every 100 years the one who will renovate its religion for it.

 

Recall that in a grand ceremony attended by distinguished personalities and spiritual leaders, Hon Saheed Audullahi Mosadoluwa, Chairman and CEO of Harmony Gardens and Estates Development LTD, officially commissioned and handed over a state-of-the-art central mosque in Ibeju-Lekki, Lagos State, on Friday, January 19th, 2024.

 

The auspicious event witnessed the presence of esteemed religious leaders, including Sheik Semiu .A. Opeloyeru, The Grand Chief Imam and General President of the League of Imam and Alfa in Ibeju-Lekki L.G.A. The ceremony commenced with the arrival of Sheik Semiu .A. Opeloyeru, setting the tone for a day of spiritual significance and community celebration.

 

Representing the executive governor of Lagos State, His Excellency Babajide Sanwoolu, was Hon. Ahmed Abdulai Jembe, the Special Adviser on Islamic Affairs to the governor, graced the ceremony. The Onibeju in attendance emphasizing the significance of the event in the cultural and traditional context.

 

The event saw the attendance of various traditional rulers, highlighting the communal and inclusive nature of the mosque inauguration. Notably, the newly appointed Lagos NURTW Chairman, Mustapha Sego, drew attention as his presence added an extra layer of recognition to the occasion.

 

However, the prestigious ceremony, held at Monarch Hall in Osapa London Lekki, Lagos State, saw Hon. Dr. Saheed Audullahi Mosadoluwa bestowed with the title of Baba Adinni, signifying a revered position within the religious community. His wife, Hadjia Aishat Adebimpe, was similarly honored as Iya Adinni, a title of great respect and responsibility.

 

The Al-Irshad Islamic Foundation, under the guidance of its founder Sheik Rasheed Adeleke, who is also the owner of Al-Irshad Travel and Tours, organized the event as a Pre-Ramadan lecture, award ceremony, and Turbaning ceremony. The atmosphere was filled with spiritual fervor and communal joy as community members gathered to witness the momentous occasion.

 

Notably, Abu Abel and other prominent figures, was also present at the event, adding to the significance of the gathering. The ceremony, held on Sunday, February 25th, 2024, brought together individuals from diverse backgrounds to celebrate the exemplary contributions of Hon. Dr. Saheed Audullahi Mosadoluwa and his wife to both the community and the Islamic faith.

 

The Turbaning ceremony, a traditional rite of passage within the Islamic community, symbolizes a deep connection with cultural heritage and spiritual leadership. The titles of Baba Adinni and Iya Adinni carry great responsibilities, signifying the honorees’ commitment to serving the community and upholding the values of the Islamic faith.

 

As the community celebrates this significant event, the installation of Hon. Dr. Saheed Audullahi Mosadoluwa and Hadjia Aishat Adebimpe as Baba Adinni and Iya Adinni reflects their exemplary leadership and commitment to the principles of Harmony Gardens and Estate Development LTD. The event serves as a beacon of unity, spirituality, and communal recognition within the Osapa London in Lekki community.

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Business

Squad Powers OmniPay’s Trade Business to Simplify Payments for FMCG Industry

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In a strategic move aimed at furthering its mission to empower African traders with the necessary payment solutions for thriving in the digital era, Squad, a fintech subsidiary of Guaranty Trust Holding Company Plc (GTCO), offering comprehensive payment and e-commerce solutions for businesses, has entered a partnership with OmniPay, a subsidiary of OmniRetail Inc.

 

This collaboration has currently benefited more than 65,000 stakeholders, which include retailers, distributors, and manufacturers through improved payment and collection methods using Squad’s Virtual Bank Account without incurring any charges. Additionally, they have gained more accessible and affordable working capital to procure goods on credit for their businesses, contributing to the daily transaction volume exceeding N3 billion, and this figure continues to grow.

 

Adeyemi Atanda, the Chief Marketing Officer, Squad, shared insights on the partnership’s significance, emphasizing, “At Squad, our mission revolves around providing African businesses with the right solutions for effortless payment processes, available at their convenience. We understand the pivotal role small businesses play in our economy. Through strategic alliances like this, we aim to empower even more merchants by granting them access to rapid, user-friendly, and dependable payment solutions that optimize their business operations and, in turn, boost their revenue.”

 

Deepankar Rustagi, CEO of OmniRetail stated, “As we join forces with Squad, we are driven by our shared vision of transforming the digital payment landscape for African businesses. With OmniPay, businesses will gain improved payment methods with zero transfer fees, while retailers and distributors will have easier access to OmniPay’s BNPL (Buy Now Pay Later) solution. This partnership aims to empower businesses, streamline payment processes, and enhance record-keeping accuracy through automated reconciliation for orders. This partnership reinforces OmniRetail’s commitment to innovation and financial inclusion.”

 

About Squad

 

Squad is a complete payment solution that is reliable, secure, and affordable, making receiving in-person and online payments simple and convenient.

 

Our goal is to support SMEs, micro-merchants, large corporations, and other fintechs (Tech Stars) with the tools they need to thrive in an evolving digital economy and expand beyond their current market reach.

 

Squad’s current products and service offerings include SquadPOS, Squad Payment Links, Squad Virtual Accounts, USSD, and E-Commerce Storefront.

 

Find out more at www.squadco.com.

 

About OmniPay

 

OmniPay, a subsidiary of OmniRetail Inc., is a company with a mission to simplify payments in Nigeria and provide working capital to trade businesses. OmniPay provides an API-based wallet built to simplify trade payments.

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