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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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NRS Denies Introduction of New Vehicle Tax from July 1

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new vehicle tax

By Modupe Gbadeyanka

The Nigeria Revenue Service (NRS) refuted reports making the rounds on social media that the federal government plans to introduce a new tax on vehicles from July 1, 2026.

Mr Dare Adekambi, who serves as the Special Adviser to the NRS Chairman, Mr Zach Adedeji, and spokesperson for the organisation, said in a statement that the government was not planning to introduce the vehicle tax as claimed.

He described a viral infographic purporting the policy as false and misleading, urging members of the public to disregard it.

Mr Adekambi advised citizens to only rely on information from the NRS, urging them to follow the company its official handles on all social media platforms and its website for accurate information about tax and its activities.

In the infographic, motorists were directed to pay an unspecified vehicle tax rate online or at approved banks and agencies. The website listed as NRS’s was the old one, http://www.firs.gov.ng and not the new http://www.nrs.gov.ng created after it was rebranded.

“The NRS wishes to state categorically that the information did not emanate from the service or any government agency.

“Citizens are, therefore, advised to disregard the fabricated messages designed to mislead the public and instead rely on official government channels for information on government policies,” Mr Adekambi said in the statement.

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Court Restrains Police, FRSC from Imposing Car Insurance Fines Without Court Order

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third-party insurance

By Adedapo Adesanya

The Federal High Court in Abuja has restrained the Nigeria Police Force and the Federal Road Safety Corps (FRSC) from imposing fines on motorists for third-party motor vehicle insurance violations without a court order.

The ruling followed a suit marked FHC/ABJ/CS/291/2025 filed by activist-lawyer, Mr Deji Adeyanju, against the Inspector-General of Police, the Attorney-General of the Federation and the FRSC.

Delivering judgment on Friday, Justice Hauwa Yilwa held that while both the police and the FRSC have the power to enforce compliance with third-party motor insurance, they lack the legal authority to impose fines on alleged offenders.

The suit was initiated through an originating summons, brought pursuant to Section 17 of the Motor Vehicles (Third Party Insurance) Act, 1950, Sections 68(3) and (4) of the Insurance Act, 2003, as well as provisions of the Federal Road Safety Commission (Establishment) Act, 2007.

Mr Adeyanju had asked the court to determine whether the police could enforce third-party insurance, impose fines without judicial backing, and whether such enforcement during routine stop-and-search operations violated constitutional rights.

He also sought a declaration on whether the power to enforce third-party motor insurance lies exclusively with the FRSC.

In addition to the declaratory relief, the applicant requested orders of perpetual injunction restraining the police from enforcing third-party insurance and from imposing fines without judicial backing.

He further urged the court to hold the Attorney-General of the Federation accountable for providing legal guidance on the scope of police powers under the relevant statutes.

However, in its judgment, the court drew a distinction between enforcement and sanctioning powers.

Counsel to the applicant, Mr Marvin Omorogbe, said the court upheld the authority of both the police and the FRSC to ensure compliance with motor vehicle insurance laws, but firmly ruled against the imposition of fines by either agency.

According to him, the court held that “the police and the road safety may enforce” compliance but “outrightly lack the powers to impose fines on third parties or vehicle owners” in the course of such enforcement.

“The court went further to restrain the IGP, the Police Force and all their officers, including the FRSC, from imposing fines on motor vehicle users or Nigerian citizens,” Mr Omorogbe said.

Reacting to the judgment, Mr Adeyanju expressed satisfaction, noting that the central objective of the suit had been achieved.

“The sole reason why we came to court is that we wanted the court to make a positive declaration that the police and the road safety do not have the right to impose fines on any Nigerian over motor vehicle insurance. And we have succeeded,” he said.

He argued that the ruling would curb what he described as a pattern of extortion by enforcement agencies and restore confidence among motorists.

Mr Adeyanju added that although the court declined to grant all the reliefs sought—particularly the request to strip the police entirely of enforcement powers—it nonetheless made a significant pronouncement on the limits of those powers.

He also urged Nigerians to take advantage of the judgment to assert their rights and seek legal remedies where necessary.

On the other hand, counsel to the defendants, Mr Victor Okoye, said the judgment was only partly favourable to the police and signalled plans to challenge it at the Court of Appeal.

Mr Okoye disclosed that the defence had raised a preliminary objection questioning the jurisdiction of the court to entertain the suit, arguing that the originating summons was incompetent and unsuitable for resolving contentious issues.

He relied on appellate authorities to stress that jurisdiction is fundamental to adjudication and must be determined before any substantive issues.

Despite this, he noted, the court proceeded to deliver judgment.

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Pamtech Issues Public Disclaimer on Popular Auto Influencer Juliet Ibekwe

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Juliet Ibekwe Somiari Lucky

By Modupe Gbadeyanka

A public disclaimer has been issued on two former representatives of Pamtech Group, Mr Somiari Lucky and Ms Juliet Ibekwe, who is a popular auto influencer.

In the notice signed by the chief executive of Pamtech, Mr Chidomere Ndubuisi, on Tuesday, members of the public were informed that the duo no longer work with the organisation.

Mr Ndubuisi, who did not disclose why he disengaged the duo, however, emphasised that Mr Lucky and Ms Ibekwe are “not authorised to act on behalf of, represent, negotiate, or enter into any business dealings in the name of Pamtech Media Ltd or Pamtech Group.”

Ms Ibekwe rose to fame by creating content on how to make vehicles work efficiently. She became a notable auto content creator in Nigeria and garnered more fans for her car care tips.

In the disclaimer today, Pamtech warned “the general public, our valued clients, partners, and stakeholders” that doing business with Ms Ibekwe and Mr Lucky is “at their own discretion and risk, and such engagements do not involve Pamtech Group in any capacity.”

“Any business transactions, agreements, or engagements entered into with the above-mentioned individuals are strictly personal to them; Pamtech Group shall not be held liable or responsible for any commitments, representations, or obligations made by them after their exit from the company,” another part of the notice stressed.

The Owerri, Imo State-based firm further noted that, “Any use of the Pamtech name, brand, platform, or reputation by them without written authorisation is unauthorised and not recognised by the company.”

The company urged its clients, partners, and members of the public to verify all engagements directly with Pamtech Group official channels, and also ensure that all payments and communications are made only through verified company accounts and representatives.”

Pamtech expressed its commitment to delivering excellence, integrity, and professionalism across all its services in media, automobile, and business solutions.

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