Banking

Oil Firm Sues Union Bank for N6.7b over Contract Breach

Published

7 years ago

14/05/2018

By Modupe Gbadeyanka

A N6.7 billion lawsuit has been instituted against Union Bank of Nigeria by a multinational oil company, Petrocam Trading Nigeria Limited.

The firm accused the lender of negligence and breaching a contract between them and filed the suit before a Lagos High Court.

Petrocam wants the court to compel Union Bank to credit its current account with N6.7 billion plus interest on the sum at the rate of 22 percent per annum from commencement of suit to date of judgement, with N50 million in general damages.

Counsel to Petrocam, Barrister Gboyega Oyewole (SAN), claimed Union Bank flouted the joint venture agreement entered with his client to jointly collaborate in opening letters of credit confirmation lines for the importation of petroleum products.

The joint venture accounts are domicile with the bank and in executing the letter of credit confirmation lines, the bank is expected to use the Naira sum in the account in bidding and purchasing foreign exchange for liquidation of mature letters of credit.

Sometimes in 2014, the company was said to have approached the bank for an import finance facility line of $45 million in its favour to finance the importation of petroleum products, upon securing the finance facility, various letters of credit were raised to utilize the dollar facility. The import finance facility was later increased to $100 million.

The letters of credit were to be paid back with sales proceeds and subsidy reimbursement and bank guarantee was provided as security for the sale proceeds.

However, the bank was alleged to have failed, neglected and refused to perform its duty as an agent between the company and Central Bank of Nigeria and as a bank to secure foreign exchange for the liquidation of matured letters of credit as at when due.

The bank, rather than make bids on behalf of the company within the period of 2014/2015 in the first quarter of the transaction when the letter of instructions were given by the company, was only able to purchase forex to liquidate these mature letters of credits within the period of 2016/2017,whereas 90% of the transactions were done in 2014/2015 when dollar was at the rate of N155-N160 per Dollar.

However, the company failed to bid on these transactions until when foreign exchange has moved to N288-N320 per dollar.

The company averred further that over N4 billion was domicile with the bank in the joint venture account as at February, 2015 and over N2.4 billion in Petrocam current account for purchase of foreign exchange to liquidate these matured letters of credit, but that the bank was only able to secure bid for $21,625,935.30 within the period of 90 days when they were expected to liquidate the full value of $76,369,569.30 which exposed the company to heavy losses as a result of the failure to bid as at when due by the bank within the transaction cycle.

By reason of the several acts of gross negligence and breach of the banker-customer relationship subsisting between the company and the bank, the company joint venture account maintained with the bank for the funding of trade facility has been allegedly unlawfully debited with a total sum in excess of N6,704,918,533.71.

The company also averred that the various exorbitant charges made on the company’s account by the bank was revealed by the report of the independent consultant engaged by the company.

As a result of these alleged breaches, Petrocam wants an order directing Union bank to credit or reverse the wrongful debit on the company’s current account maintained with the bank for the funding of the letter of credit totaling the sum of N6,704,918,533.71 arising from the bank’s breach of its duty to the company, interest on the said sum of N6,704,918,533.71 at the rate of 22%per annum being the prevailing interest rate from commencement of this suit to the date of judgement, and thereafter 7% interest from the date judgement is given till the final liquidation of the judgment sum as well as N50 million as general damages in favour of the Petrocam company.

But Union bank did not file any defence to this suit, rather it has filed another suit against Petrocam Trading Company Limited and its Managing Director, Mr Patrick Ilo, before a Federal High Court in Lagos, claiming the sum of N10,062,643,928.72 and $5,247,693.82 plus interest at the rate of 27% per annum and N20 million as cost of instituting the said legal action against Petrocam Trading company and its Managing Director.

This has forced Petrocam and its Managing Director to file a preliminary objection against this suit, drawing the attention of the court to their pending suit against the bank at a Lagos High Court.

Banking

No Need to Worry, Your Funds Safe With us—Access Bank Assures Customers

Published

1 day ago

25/11/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

Access Bank Plc has assured customers that their funds are safe with the company, stressing that there’s nothing to worry about.

The lender gave this assurance in reaction to a video making the rounds on social media that about N500 million belonging to a customer was missing.

The financial institution described this allegation as “baseless,” denying any involvement in “any unethical behaviour.”

“Our attention has been drawn to a video on social media wherein allegations of missing funds and unethical behaviour have been made against Access Bank PLC.

“First and foremost, we wish to emphasise that the safety and security of our customers’ funds are core priorities which we take seriously. Second, Access Bank Plc does not engage in or condone any unethical behaviour.

“In the instant case, the allegations of missing funds in the Bank are most untrue and baseless.

“There is no N500 million or any other fund or amount missing from the subject customer’s account or any other customer’s account with us.

“We and other independent stakeholders in the banking industry have thoroughly investigated these allegations and independently arrived at the same conclusions.

“Access Bank PLC operates with the highest ethical standards, and we protect our customers’ interests whilst also respecting privacy laws.

“Consequently, whilst we have engaged and will continue to engage with our customers, we must advise the public not to rely on or believe sensational and unverified claims that are designed to titillate and mislead the public,” a statement from the firm stated.

Banking

Yuletide: Zenith Bank Lights up Ajose Adeogun

Published

2 days ago

25/11/2024

Modupe Gbadeyanka

By Modupe Gbadeyanka

The Ajose Adeogun Street in the Victoria Island area of Lagos State has been decorated by Zenith Bank Plc in line with its yearly tradition.

The area was lightened up by the financial institution ahead of the yuletide season and at the unveiling on Saturday, November 23, 2024, the lender said it was happy to do it again for the 18th year.

“Over the years, Zenith Bank has hosted this spectacular event, transforming the entire Ajose Adeogun Street into a breathtaking yuletide wonderland.

“Our beautiful and elaborate Christmas decorations have become a centre of attraction and shared on social media platforms globally.

“As we light up the street tonight, we celebrate the essence of Christmas and Zenith Bank’s unparalleled Corporate Social Responsibility (CSR).

“Our customers will always be at the centre of all that we do in Zenith Bank,” the chief executive of Zenith Bank, Ms Adaora Umeoji said.

She urged everyone to imbibe the message and spirit of Christmas which is about love, kindness, generosity and respect for humanity, and thanked the Lagos State Government for creating an enabling environment for the initiative.

She also praised the efforts of Quantum Markets, who have been responsible for the annual decorations, for their expertise and creativity in putting together the lovely decorations.

“I want to thank the management of Quantum Markets for all the beautiful, creative and innovative ideas they keep coming up with. Quantum Markets always make it bigger and better every year, and we are always looking forward to it,” she stated.

The beautiful Christmas decoration, which transforms the entire stretch of Ajose Adeogun Street (home to Zenith Bank’s corporate headquarters) and roundabout into a breathtaking yuletide wonderland, has come to be recognized as an iconic tourist attraction, bringing visitors from far and wide who visit with their families and friends to take pictures and enjoy the ambience of the street.

The company’s sustainability and CSR initiatives are hinged on the belief that today’s business performance is not all about the financial numbers – the bank believes that an institution’s social investments, contributions to inclusive economic growth and development as well as improvements in the condition of the physical environment, all constitute a balanced scorecard.

Banking

Zenith Bank Introduces EazyByZenith Digital Wallet

Published

4 days ago

22/11/2024

Dipo Olowookere

By Modupe Gbadeyanka

One of the leading financial institutions in Nigeria, Zenith Bank Plc, has launched a digital wallet known as EazyByZenith.

This was unveiled at the 2024 Zenith Tech Fair held on Thursday, November 21, 2024, at the Eko Hotels and Suites, Lagos.

The lender said this wallet will help to support its retail and financial inclusion strategy, as the company further pushes to expand its share of the retail banking space in Nigeria.

The chief executive of Zenith Bank, Ms Adaora Umeoji, said the bank cannot sit back as the world moves into the digital age.

“It is paramount that we adapt and adopt technology to stay ahead of the curve. We have seen various cases of companies that failed because of their lack of innovation.

“It is quite obvious that when companies fail to innovate; they can easily be displaced, so this is not the time to be orthodox, innovation should be a top priority for us,” she stated.

Explaining why Zenith Bank came up with the fair themed Future Forward 4.0: Embedded Finance, Cybersecurity and Growth Imperatives – The Impact of AI, she said it was to “empower and nurture young fertile minds,” with the mindset to “produce the likes of Bill Gates, Mark Zuckerberg, Steve Jobs and Elon Musk” in the nearest future.

“According to the Nigerian Bureau of Statistics (NBS), about 70 per cent of Nigeria’s population are youths which is an economic asset when properly harnessed.

This is part of the reason why Zenith Bank is hosting this event to support the development of technology startups.

“Their success not only fosters innovation and growth in Nigeria, but it also plays a vital role in creating employment opportunities for our youth,” Ms Umeoji also said, stressing the importance of innovation and embedded finance in ensuring strong and enduring institutions.

Business Post reports that the fair also included presentations on the leading technological innovations that cut across different aspects of life, such as Artificial Intelligence, Cybersecurity, Risk Management, Compliance, Financial Intelligence, Cloud Computing and Communication Technologies, with the keynote address, Banking Transformation in a Digital World, delivered by Robin Speculand, a renowned Strategy and Digital Implementation Specialist.