Economy
N40b Debt: MRS Oil, AMCON Agree Out-of-Court Settlement
In a bid to settle out of court the debt of N40billion,Asset management Corporation of Nigeria AMCON and MRS Holding limited has filed terms of settlement before a Federal High court in Lagos south west Nigeria.
MRS Oil and Gas Company limited and its subsidiaries are primary obligors under a syndicated loan facility in the sum of $40 million availed to them by a consortium of Nigerian banks pursuant to a bridge facility agreement dated November 18, 2008 and a supplemental bridge facility agreement dated September 18, 2009.
The syndicated loan facility was for the purpose of acquiring Chevron Texaco downstream operations in West Africa.
The security package for the syndicated loan facility included a personal guarantee from the Chairman of MRS Oil and Gas company Mr Sayyu Dantata, as well as a corporate guarantee and indemnity from each of Corlay Global S. A., Ovals Trading S. A. and Societe Nationale D’Operations Petrolieres de Cote D’Ivoire.
The syndicated loan facility was subsequently classified as non-performing loan and acquired by AMCON pursuant to the provisions of the AMCON Act.
In a bid to recover the debt AMCON instituted a suit AMCON versus Petroci and another,. MRS subsequently applied to be joined as a party to the action and filed a counter -claim against Petroci.
In that suit, AMCON and Petroci executed Terms of Settlement on June 16, 2015 in the sum of $90 million, the terms were subsequently entered as the consent judgement on June 29, 2015.
In relation to the proportion of the debt that remains outstanding AMCON commenced suit (winding Up Proceedings) on July 4, 2016 against MRS as the respondent on the ground of MRS inability to pay its debt.
The winding up proceedings seeks an order of the court winding up MRS for being insolvent company.
AMCON also commenced suit number FHC/L/BK/04/2016(the bankruptcy Proceedings against Mr Sayyu Dantata, Chairman of MRS, on the basis of a personal guarantee dated September 17, 2008 to repay the sum of N350 million in the event of a default by MRS to repay the syndicated loan facility.
The parties now agreed to settle fully and finally the dispute concerning the debts
Now it is hereby agreed that:
- MRS shall pay to AMCON, the sum of N42 billion in full and final settlement of all sums due and owing to AMCON by MRS pursuant to the syndicated loan facility extended to MRS, and AMCON shall hereby release and forever discharge all claims against MRS, its parent, subsidiaries, assigns, transfees, representatives, principals, agents, officers, and directors subject to the following terms and conditions:
MRS shall between the 1st day of February 2018 and 10th day of April 2018 pay over to AMCON the sum of N2 billion of which the sum of N1 billion is acknowledged as having been paid.
(b)MRS shall pay the balance of N40 billion over a period of four years at an interest rate of 9% per annum on a quarterly basis.
(c)The sum of N2.5 billion plus accrued interest shall be paid by MRS on a quarterly basis, commencing ninety days from the effective date being 1st February 2018.
(d)MRS shall provide an acceptable unconditional bank guarantee with four year tenor from a reputable bank to back up the quarterly payment envisaged under this Terms of Settlement. A maximum period of ninety days shall be afforded to MRS to procure and provide the bank guarantees envisaged under this Terms of Settlement.
(e)MRS agrees to be bounded by the terms and conditions contained in the offer letter dated March 22, 2018 to which a breach of any of these terms would automatically become enforceable.
(f)AMCON shall accept lump sum prepayment without penalty.
2 AMCON shall be entitled to call in the bank Guarantee in the event of a default in making the quarterly payments, without the requirement to give notice.
AMCON shall be entitled to cancel all the concessions granted under this terms of settlement and call in the total balance outstanding in the event of default of any of the terms and conditions undertaken by MRS under the terms of Settlement
- Upon full payment of the total sum of N42 billion in full and final settlement of all sums due and owing to AMCON, AMCON agrees to release and discharge MRS, its parent, agents and Directors from liability and obligation to it in connection with the debts.
- It is expressly agreed between parties that the terms of settlement herein compromises all prior and existing judgement obtained against MRS and its directors.
- Upon execution of this agreement and payment of the sum of N2 billion, as contained in clause 1(a) above, AMCON shall immediately discontinue and withdraw all pending court case between parties in relation to the debt subject mystery of this settlement agreement, the winding up proceeding and the Bankruptcy proceedings and filed and adopt these terms as a consent judgement in the winding up proceedings.
- These terms of settlement are expressly without prejudice to MRS’s ability to maintain and pursue the MRS’s Counter Claims in the Petroci Proceedings and/or purse the MRS’s counter claims against Petroci in arbitration or otherwise.
- AMCON agrees, on behalf of itself and on behalf of its parent and agents or Directors, not to sue, commence, voluntarily aid in any way prosecute against MRS or it agents or Directors any action or proceedings concerning the release claims, in this jurisdiction or any other
- Parties to bear their respective litigation cost.
The terms of Settlement was endorsed on behalf of AMCON by: their counsel Adeniyi Adegbomire SAN, Head, Energy group, Sulaiman Abdul Majeed, Group Head, Credict Joshua Ikioda, and a Director, Secretary, and a lawyer Oladapo Ajayi on behalf of MRS Holding limited.
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to prioritise reforms that address constraints in the manufacturing sector as it tackles broader macroeconomic and fiscal challenges facing the Nigerian economy.
President of LCCI, Mr Leye Kupoluyi, gave the advice on Thursday in Lagos, at the chamber’s quarterly state of the nation’s economy news conference.
He stated that the manufacturing sector remained a critical driver of revenue and industrial growth, citing a strong performance in 2025.
Mr Kupoluyi noted that the sector contributed N1.17 trillion in Value Added Tax (VAT), representing a 45.61 per cent increase from N803.53 billion recorded in 2024, adding that the Company Income Tax (CIT) from the sector rose to N881.29 billion, up by 32.83 per cent from N663.46 billion in the previous year.
“This strong year-on-year growth reinforces the sector’s expanding role in generating government revenue and in Nigeria’s industrial development.
“Following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions,” he said.
On the global terrain, the LCCI president noted that the global economy remained unsettled, shaped by geopolitical tensions, supply chain disruptions and monetary tightening in advanced economies.
He said these trends had sustained inflationary pressures globally, while exposing emerging markets, including Nigeria, to capital outflows and currency volatility.
Mr Kupoluyi noted that Nigeria had benefited from high crude oil prices, warned against mismanaging the resulting windfall, urging the government to channel oil revenues into the Sovereign Wealth Fund, critical infrastructure and diversification initiatives to reduce import dependence and support long-term growth.
On monetary policy, the chamber’s president commended the Central Bank of Nigeria’s Monetary Policy Committee for reducing the Monetary Policy Rate by 50 basis points to 26.5 per cent at its February meeting.
He described the move as a cautious but important shift, reflecting growing confidence amid improvements in inflation and external sector performance.
Mr Kupoluyi also highlighted improvements in the foreign exchange market, noting that the naira had shown relative stability and appreciated to about N1,350.79 to the Dollar in the official market.
He said the performance reflects improved liquidity, investor confidence and the impact of ongoing reforms, but called for stronger policy coordination, increased FX inflows and fiscal discipline to sustain stability.
On fiscal operations, the LCCI president raised concerns over weak capital budget implementation, citing the rollover of N7.71 trillion in unexecuted 2025 capital projects.
He said delays in fund releases, bureaucratic bottlenecks and inefficiencies had continued to undermine project delivery and strain contractors.
He urged the government to develop a more effective framework for capital budget releases to ensure timely funding and execution of projects.
Addressing the oil and gas sector, Mr Kupoluyi welcomed the ongoing reform efforts aimed at boosting crude oil production and improving regulatory processes.
He called for a fully digital regulatory ecosystem to enhance transparency, accelerate approvals and restore investor confidence.
The official added that high global oil prices presented an opportunity for Nigeria to strengthen its position as a major supplier, provided local production and refining capacities are improved.
The LCCI president, however, expressed concern over high import duties on paper, printing materials and related inputs, noting that the policy had increased production costs across several value chains.
“The situation is worsened by port delays, multiple regulatory checks and inconsistent tariff classifications.
The chamber also called for a review of import duties, integration of regulatory agencies into the National Single Window and measures to reduce cargo clearance timelines.
“A balanced policy mix of moderate tariffs, support for local production and stable macroeconomic conditions would enhance industrial growth and reduce business costs,” he said.
He also reiterated its commitment to continued engagement with government and stakeholders to promote policies that support a thriving business environment.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Thursday, April 29, with the Unlisted Security Index (NSI) returning above the 4,000-point mark after chalking up 6.55 points to settle at 4,005.78 points compared with the previous day’s 3,999.23 points.
During the trading session, the market capitalisation of the platform went up by N3.92 billion to close at N2.396 trillion, in contrast to the N2.392 trillion it ended on Wednesday.
The upliftment of the alternative stock market was influenced by the gains posted by four securities, which offset the losses printed by two securities.
According to data, Central Securities Clearing System (CSCS) Plc chalked up N4.03 to close at N76.02 per share versus the preceding session’s N71.99 per share, Food Concepts Plc appreciated by 24 Kobo to N2.67 per unit from N2.43 per unit, UBN Property Plc climbed 20 Kobo to trade at N2.23 per share versus N2.03 per share, and Geo-Fluids Plc improved by 9 Kobo to N3.00 per unit from N2.91 per unit.
On the flip side, MRS Oil Plc lost N17.65 to end at N178.10 per share compared with the previous price of N195.75 per share, and FrieslandCampina Wamco Nigeria Plc dipped by N9.76 to N90.24 per unit from N100.00 per unit.
The volume of securities traded during the trading day went up by 184.3 per cent to 877,682 units from 308,698 units, the value of securities jumped 5.7 per cent to N26.7 million from N25.2 million, and the number of deals soared by 100 per cent to 56 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value (year-to-date) with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 60.1 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed as the most active stock by volume (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
The market will be closed on Friday, May 1, for Workers’ Day celebration.
By Adedapo Adesanya
The Naira, in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, April 3, further appreciated against the United States Dollar by N4.52 or 0.33 per cent to N1,374.94/$1 from N1,379.46/$1.
Equally, the domestic currency gained against the Pound Sterling in the official market by N3.34 during the session to close at N1,858.24/£1 compared to the previous rate of N1,861.58/£1, and against the Euro, it improved by N5.29 to sell at N1,607.58/€1 versus N1,612.87/€1.
At the GTBank FX counter, the Nigerian Naira gained N4 against the Dollar to settle at N1,384/$1 versus Wednesday’s closing price of N1,389/$1, and at the parallel market, it improved by N5 to trade at N1,385/$1 compared with the N1,390/$1 it was transacted a day earlier.
Nigeria’s external reserves, which provide the Central Bank of Nigeria (CBN) with a buffer to support the Naira, continued their downward trend, declining to $48.36 billion as of April 29, 2026, according to data.
Market activity weakened sharply, with the NAFEM recording zero deals on Thursday, down from 393 deals on Wednesday. Total turnover in the official window also dropped from $802.44 million to zero, underscoring a severe liquidity squeeze.
Thursday’s price formation was driven entirely by the interbank segment, where turnover also fell significantly to $58.03 million from $249.91 million, suggesting that liquidity pressures extended across the broader FX market.
As for the cryptocurrency market, prices were up amid looming US inflation data, while high oil prices and rising bond yields weigh on risk assets.
The appreciation faces headwinds in the form of US March PCE inflation, which lands as oil prices keep pressure on risk assets, as well as reduced traffic through the Strait of Hormuz, which has kept energy markets fragile.
Dogecoin (DOGE) rose by 1.8 per cent to trade at $0.1082, Bitcoin (BTC) appreciated to $76,987.59, Ethereum (ETH) grew by 1.2 per cent to $2,276.11, Cardano (ADA) added 1.1 per cent to close at $0.2484, and Solana (SOL) soared by 1.1 per cent to $83.89.
Further, TRON (TRX) increased by 0.7 per cent to $0.3224, Ripple (XRP) jumped 0.4 per cent to $1.37, and Binance Coin (BNB) expanded by 0.2 per cent to $616.67, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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