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Crisis Looms as RT Briscoe Erodes Shareholders’ Fund by N9.4bn

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R.T. Briscoe Nigeria

By Dipo Olowookere

All may not be too well with RT Briscoe Plc as the company’s auditors, PKF Professional Services, have said if urgent steps are not taken; the automobile firm may be forced to wind down.

On Monday, September 21, 2020, the Nigerian Stock Exchange (NSE) made the financial statements of RT Briscoe for the year ended December 31, 2019, available to the investing public.

An analysis of the results done by Business Post showed that the organisation is struggling to remain in business. This is because the firm is not generating enough funds to meet its normal obligations.

Though the revenue generated in the 2019 reporting year went up to N6.9 billion from N5.2 billion in 2018, the firm still recorded pre and post-tax losses.

The loss before tax reduced to N1.2 billion from N2.2 billion and the loss after tax dropped to N1.3 billion from N2.2 billion, while the retained earnings closed in negative N13.4 billion versus negative N12.1 billion in 2018.

The loss for the year was attributed to the finance costs, which remain high at N1.4 billion, though it recorded positive operating profits of N196 million during the year.

In the year, the group’s current liabilities exceeded its current assets by N14.8 billion versus N13.4 billion in 2018, while its total liabilities exceeded its total assets by N9.5 billion compared with N8.2 billion in 2018.

It was stated that “due to the losses incurred over the years, the shareholders’ fund has been totally eroded to the tune of N9.4 billion deficit as at December 31, 2019.”

In their notes, the auditors said the bank overdrafts of RT Briscoe as December 31, 2019, stood at N15 billion, representing 86 per cent of the total liabilities which is significant in the consolidated financial statements.

“The company has not been able to repay the bank overdraft and this has led to winding-up cases by the banks and other creditors.

“There are also issues on penalty charges by the banks. The significant, in relation to the inability to repay the borrowings which led to court litigations and also the going concern issues, makes it a key audit matter,” the auditors said in the report.

According to PKF Professional Services, “the issues raised in the financial statements indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”

However, it was noted that the board has taken steps to return the company back to profitability by coming up with a number of strategic measures, which it said are already yielding positive results.

One of these strategies includes restructuring the business for greater efficiency and profitability and positioning the company and or its subsidiaries to attract potential investors.

RT Briscoe stressed that this has led to an increase in operating profits of N100.3 million and N195.0 million in 2018 and 2019 respectively.

Another strategy implemented, according to the firm, is recapitalising the business, which is to explore the possibility of raising about N10 billion by way of equity, debt capital or a combination of both.

RT Briscoe said it engaged the services of Lead Capital to see how to make this a reality and a draft prospectus for a Special Purpose Money Market Funds was designed and approved by the board and is about to be submitted to the Securities and Exchange Commission (SEC) for approval.

The company also said it engaged some forensic experts to look into its bank statements and it was discovered that rather than owing the banks the huge amounts being currently claimed by the banks against the firm, the company should, in fact, have positive balances with some of these banks, as the huge liabilities claimed by the banks are mainly due to questionable excess and penal charges.

Business Post recalls that on September 1, 2020, the NSE suspended trading in the shares of RT Briscoe and five other companies because of their failure to release their financial statements. It was not the first time such action was taken on RT Briscoe, which was also suspended on July 2, 2019, for the same reason. A year earlier, on July 5, 2018, the NSE also suspended RT Briscoe from the exchange due to failure to submit its 2017 financial results. The suspension was only lifted two months after it did the needful.

RT Briscoe is allegedly indebted to Access Bank (through Diamond Bank), Polaris Bank (through Skye Bank), GTBank, UBA, First Bank, FSDH Merchant Bank and the Federal Inland Revenue Service (FIRS).

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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inDrive Backs Smart Mobility Innovation With AOT Lagos 7.0 Sponsorship

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inDrive The Heart That Drives Us

By Modupe Gbadeyanka

The 2025 edition of the Art of Technology (AOT) Lagos is going to be bigger and better with the inclusion of inDrive as its official sponsor.

The AOT Lagos 7.0, themed Future Technologies and a Sustainable Lagos, is scheduled for Thursday, December 4, 2025, at the Landmark Centre, Lagos.

inDrive, a leading global ride-hailing platform operating in nine African countries, is partnering with the Lagos State government to bring together policymakers, innovators, tech founders, investors, and global industry leaders to shape the future of technology and digital transformation in Lagos.

Through this collaboration, inDrive aims to contribute to high-level conversations on driver empowerment, sustainable transport models, safety, and affordability, key challenges affecting millions of daily commuters and mobility service providers in the state.

According to the Country Representative of inDrive Nigeria, Mr Timothy Oladimeji, the sponsorship underscores the company’s deep commitment to advancing equitable mobility systems and supporting conversations that drive long-term impact across the transportation ecosystem.

He noted that inDrive sees AOT Lagos as a critical platform for addressing mobility challenges and accelerating innovation within the state.

During the event, inDrive will be participating in one of the key sessions, discussing the topic From fuel to future: the rise of e-mobility in Lagos.

Aside from this, inDrive will also be hosting a side workshop themed The Market Share Victory – How inDrive Became Nigeria’s Second-Largest Ride-Hailing Player.

“We are proud to sponsor AOT Lagos 7.0 because it aligns perfectly with our vision to democratise mobility and ensure fairness for both drivers and riders.

“As Lagos moves toward a smarter, more sustainable mobility future, inDrive is committed to supporting solutions that prioritise affordability, safety, driver empowerment, and technological readiness.

“Through this partnership, we hope to contribute meaningfully to shaping policies and ideas that will redefine how millions of people move across the state,” he said.

Now in its seventh edition, AOT Lagos has evolved into a premier platform for advancing smart-city innovation, showcasing emerging technologies, and influencing the policy frameworks that shape the digital economy in Africa’s largest city.

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FG to Open Section of Lagos-Calabar Coastal Highway December 12

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Lagos-Calabar Coastal Highway

By Adedapo Adesanya

The federal government is set to open Section 1 of the 700 km Lagos-Calabar Coastal Highway for public use from December 12 to 17, 2025.

The Minister of Works, Mr Dave Umahi, gave the assurance on Sunday in Lagos during a review of outstanding works on Section 1 of the highway project.

The section 1 is 47.47km long and has six lanes and two carriageways.

Mr Umahi said: “We also set aside April next year to have Section 1 and half of Section 2 fully completed and commissioned,” adding that the contractor handling the project, Hitech Construction Company Limited, had achieved more than 80 per cent of the reinforced concrete pavement.

“We are very grateful to God Almighty for his mercies, and to the President and to the contractor.

“If we are to pay for everything they have done, it will be very difficult to have this job done because there are places we didn’t envisage that we were going to be removing pits up to a depth of 20 metres.

“They had to do that because they are partners in progress for the development of the country.

“We have just about three kilometres to complete the entire sand filling from Ahmadu Bello Way to Eleko Junction, and we are excited at the work and the quality of what has been done,” the former Governor of Ebonyi State, said.

The new Controller of Works in Lagos, Mr Olufemi Dare, told the minister that a lot of settling was ongoing at Chainage 33 of the highway project, praising the contractor for high quality of work.

“Sir, it may interest you to know that the building standing is the palace of this community, and you saved this building, and they are extremely happy,” he said.

On his part, the Managing Director of Hitech Construction Company Limited, Mr Dany Abboud, said that the company would still backfill from Chainage 34 to Chainage 37.

“Dredging is ongoing, we are on track to deliver.

“We are monitoring the settlement in the swampy areas and the water body areas due to the change of alignment,” he said.

The highway, which commenced construction in March 2024, has generated a lot of controversy, with critics raising concern around cost and procurement structure.

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Nord Vehicle Owner Accuses Nigerian Bank of Economic Sabotage

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nord motion owner oluwatobi ajayi

By Modupe Gbadeyanka

A Nigerian lender has been accused of frustrating local business owners by not financing Made-in-Nigeria vehicles but promoting the purchase of foreign vehicles.

This allegation was made by the owner of a local vehicle assembly firm, Nord Motion, Mr Oluwatobi Ajayi, in a post on X, formerly known as Twitter.

He described this as an economic sabotage, stressing that this action does not encourage local investors.

“A business owner in the oil and gas sector approached us that he would like to buy two units of the @nordmotion Max pickup for his company. Apparently, he was impressed with the vehicle after some rides with his peers in the sector.

“To my shock, yesterday, my team told me that the bank, a bank operating in Nigeria told him that they do not finance Made-in-Nigeria vehicles, and they even suggested to our customer that he should go for foreign brands instead.

“The most provocative part of this is that all of the brands they suggested to him identified as Made-in-Nigeria brands in their filings with the Bureau of Public Procurement (BPP), which means they decide who they want to be whenever it suits them.

“This is yet another example of the needless sabotage and institutional bias against Nigerian manufacturers and assemblers that we experience in this sector.

“The President aims to grow us into a $1 trillion economy. Nigerians want to buy Made-in-Nigeria products, we are working very hard to produce world-class vehicles, but some banks, who should play the role of credit facilitators, are displaying open prejudice against locally made vehicles.

“What sort of economic sabotage is this?

“Many of us who continue to assemble and manufacture vehicles here do so not just for profit, but out of patriotism and belief in the long game. We see this as a marathon, not a sprint.

“We cannot continue using Nigerian resources to strengthen foreign factories while starving our own indigenous companies of opportunities.

“If we truly want this country to be better, then we must support goods and services made in Nigeria, especially those of us who have shown we can deliver world-class standards. The support has to be real, not just in words, but in policy, in finance, and in action.

“Every time we deny support for local production, we export jobs, skills, and economic growth that should belong here,” he narrated.

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