Banking

How Etiebet’s 2016 Letter Offers New Clues to N2.4bn Debt to Access Bank

Published

7 years ago

06/05/2019

In a letter dated November 9, 2016 written by former petroleum minister and All Progressive Congress (APC) chieftain, Don Etiebet, in respect of what is turning out to be a messy N2.4 billion indebtedness by an oil and gas company, Top Oil, to Access Bank Plc, appears to offer a new narrative to the dispute.

Writing in his capacity as chairman of Top Oil and Gas Company Limited, the letter shows an admission by Etiebet of the indebtedness and profuse pleading for time to resolve the matter with the principal parties, CASTOIL that appear to have brought the business from Mobil Oil Nigeria Limited, for which Top Oil was hoping to profit from as a third party participant.

However, the Etiebet letter seen by Business A.M. among the documents making the court rounds, also shows while CASTOIL had the direct supply business with Mobil Oil, Top Oil made have found the business very attractive as to take full responsibility of sourcing the funds, hence the Import Finance Facility (IFF) made available to it by the bank for the purpose of importation of Automotive Gas Oil (AGO) for supply to Mobil.

In the letter addressed to “The Manager, Access Bank Plc, Business Banking Division, Chevron Roundabout Branch, Lekki” with the heading, “RE: US$6.3 MILLION OUTSTANDING L/C PAYMENT”, Etiebet refers to the ‘demands’ by the manager for the payment of an outstanding letter of credit (LC) of $6,382,666.00, “which was used to import 10,000MT of AGO to supply Mobil Oil Nigeria Limited from Augusta Energy.”

In what appears to suggest an apology over the situation, Etiebet then wrote: “I regret that this payment is still outstanding till today. The true and correct position is that Top Oil and Gas Development Company Limited (TOPOIL) carried out this contract with a third party, CAST OIL and GAS LIMITED (CASTOIL) which brought the project from Mobil Oil Nigeria Limited. TOPOIL did not deal directly with Mobil Oil as it is common practice in the industry that companies cooperate to execute the project of this nature and share the profit,” Etiebet wrote.

He went on to explain that after an initial payment made by the third party, CASTOIL, the latter failed to make a further payment, suggesting this to be the reason for the delay and failure to redeem the letter of credit sum.

“Unfortunately, after the initial payment of N170,000,000.00 from CASTOIL into TOPOIL account with Access Bank Plc in August 2015 as agreed, CASTOIL failed to make further payments. CASTOIL then request (sic) TOPOIL to give it some time to reconcile certain issues with Mobil Oil and in the process issued TOPOIL a “PAYMENT COMMITMENT” in the sum of N1,321,431,000.00, which is what CASTOIL owed TOPOIL for the L/C at N200/$ at that time plus other costs and to pay up in three instalments by the 31st of August 2015 as per attached CASTOIL letter,” Etiebet, in the letter, also referred to how the Economic and Financial Crimes Commission (EFCC) had become involved, expressing confidence that the money would be paid to TOP OIL for it to settle Access Bank, what it owes it.

The letter further reads: “When the commitment was not honoured, TOPOIL reported the case to the security agencies. In the process of the investigations, CASTOIL entered into another agreement with TOPOIL to pay up by the end of November 2015, with understanding to pay interests and any forex variation from N200/$ to the fx rate at the time of completion of payment. The case is being handled by the EFCC with CASTOIL’s Managing Director, Mr TunjiAmushan being on Administrative Bail with sureties and his International Passport impounded as he reports to the EFCC every Thursday with promises to pay up. EFFCC has assured us that they would recover all the money plus interest and FX variation from him before long plus other sanctions.”

The letter showed that apparently while TOPOIL was trying to resolve whatever difficulties it was having with CASTOIL over the payment it did not inform or carry along with its bankers.

In further demonstration of remorse, therefore, Etiebet then stated in the letter: “I am very sorry that this was not reported to you before now because we thought CASTOIL would pay up as has been promised since last year for us to liquidate the outstanding L/C payment. So I take this opportunity to commit to you that the debts of US$6,382,666 to your bank shall, meanwhile, be paid from alternative sources including profits TOPOIL would be making from its current contracts with NNPC-Retail to supply AGO to Total-Offshore. “With other contracts in the pipeline including the supply of PMS to NNPC-Retail, I hereby give my personal undertaking to pay all the outstanding in the US$6,382,666 within 90 days. I want to let you know that we all in TOPOIL regret this unfortunate situation but thank you so much for your continued understanding and cooperation,” Etiebet concluded his rapprochement to the bank.

Sources close to the situation said nothing came out of the promises made in this 2016 letter as the bank did not receive any payment. The bitter contestation of the indebtedness that is currently going on would shades this profound apologetic and hugely conciliatory position in this letter and raises questions about how things got to this point and what, if any, could be the underlying motive behind a complete repudiation of the debt that in this November 9, 2016 letter was fully admitted. In an advertorial widely published in the media, Obodex Nigeria Limited, a company in which Etiebet has large interest and is chairman, claims that it does not owe any debt to Access Bank, a claim which seems to contradict the November 9, 2016 letter.

FACT SHEET TO POINT OF DISAGREEMENT

On November 21, 2014, Access Bank, following an accepted offer letter to the TOPOIL provides a US$6 million Import Finance Facility (IFF) to facilitate the importation of Automotive Gas Oil (AGO) for supply to Mobil Producing Unlimited by TOPOIL. The facility was tenured for a year with a maximum of 90 (ninety) days circle. In addition to the US$6 million IFF, TOPOIL was also availed a N100 million Revolving Time Loan vide the same offer letter for the purpose of facilitating the payment of Custom duties and other related Logistics.

This was also tenured for 1 (one) year with a maximum of 90 (ninety) days circle. Several Letters of Credit (LCs) were issued on the facilities, but only 1 (one) remained unpaid which is A2015C1091CL. The facts on the stated LC are stated below: In April 2015 TOPOIL submitted a Proforma Invoice valued at $5,802,500.00 and informed Access Bank it had an order from Mobil. Consequently, LC A2015C1091CL was issued in favour of a company called Augusta Energy SA (“Beneficiary”).

Upon presentation of all shipping documents required for this particular LC, funds were remitted by the bank to the beneficiary. In 2016, Access Bank increased the TOPOIL’s IFF from US$6 million to US$12 million and this was communicated to TOPOIL in an offer letter dated January 20, 2016. When the facility was not paid, the chairman of TOPOIL, Don Etiebet wrote to Access Bank in a letter dated November 9, 2016 that the LC was done with a third party known as Cast Oil & Gas Limited and committed to repay the Customer’s indebtedness.

Due to TOPOIL’s failure to repay the sum of US$6,382,665.71 at the expiration of the facility, the said amount was converted into a N2.2 billion Term Loan through an offer letter dated July 4, 2017 and the unutilized sum of US$5,617,334.29 on the US$12million IFF was also converted to a N1,463,000.000.00 Time Loan through the same offer letter. The N1,463,000.000.00 Time Loan was, however, never utilised by the TOPOIL.

Banking

Access Holdings Earnings Capacity Remains Strong—Aig-Imoukhuede

Published

3 days ago

13/06/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The chairman of Access Holdings Plc, Mr Aigboje Aig-Imoukhuede, has reaffirmed the organisation’s long-term commitment to shareholders, expressing confidence in the company’s strategic positioning, which he said is underpinned by disciplined execution, a diversified business model, a strengthened capital base, and a clear focus on sustainable value creation.

Speaking at the 4th Annual General Meeting (AGM) of the firm on Wednesday, he explained that the temporary suspension of dividend distributions was a consequence of regulatory compliance requirements rather than any deterioration in the group’s financial performance.

Mr Aig-Imoukhuede reaffirmed that the financial institution’s earnings capacity remains strong and that the board’s position reflects adherence to supervisory expectations and prudent capital management principles.

He assured shareholders of the board’s commitment to resuming dividend payments as soon as the relevant regulatory conditions are satisfied, noting that, “Our approach is clear: capital retained today must translate into greater value tomorrow and sustainable returns for our shareholders.”

The Chairman reiterated the strategic imperative underpinning the company’s next phase of growth, saying, “Our strategy, From Scale to Value, reflects the natural evolution of our journey. Scale created opportunity; value creation is how we fully realise it.”

He noted that while the organisation continues to generate strong returns, ensuring that earnings per share consistently exceed the cost of capital remains central to unlocking sustainable shareholder value.

The retired banker also acknowledged the significant unrealised value embedded within the firm’s international subsidiaries and reiterated management’s focus on improving market recognition of that intrinsic value over time.

Commenting on the financial performance of the group in 2025, he said Access Holdings accelerated provisions on legacy and regulatory forbearance credit exposures, resulting in elevated impairment charges.

He explained that the group consciously prioritised balance sheet strength and long-term resilience over short-term earnings optimisation.

“Periods of economic uncertainty often reveal more about an institution than periods of uninterrupted growth. Our focus remains on building a business that is not only growing, but improving in the quality, resilience, and sustainability of its earnings,” he stated.

Last year, the financial services organisation delivered pre-tax profit of N1.007 trillion, underscoring the strength of its diversified platform and expanding earnings base across key markets. Total assets increased to N51.56 trillion, while customer deposits grew strongly, reflecting sustained franchise momentum and deepening customer trust.

Banking

HabariPay Unveils ‘HabariPay Impact Report 2025’

Published

4 days ago

11/06/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

A new report highlighting the transformation from a newly established fintech venture into one of Nigeria’s leading payment infrastructure providers has been launched by HabariPay Limited.

The report, known as the HabariPay Impact Report 2025, provides stakeholders with a comprehensive evolution, innovation journey, business performance, and impact of the fintech subsidiary of Guaranty Trust Holding Company (GTCO) Plc on the digital payments landscape.

The company’s contributions to enabling digital commerce, supporting businesses, strengthening payment infrastructure, and expanding financial access through technology-driven solutions were also captured in the piece.

The HabariPay Impact Report 2025 also highlights the organisation’s strong financial and operational performance, the growth of the Squad platform, and the development of infrastructure that powers payment acceptance, switching, transfers, merchant services, and value-added solutions.

The publication further explores the role of innovation, talent development, and ecosystem partnerships in driving the company’s success.

It showcases HabariPay’s investments in innovation through initiatives such as the Take on Squad Hackathon and the Squad Hackademy, both of which are helping to develop future technology talent and accelerate the creation of practical solutions to real-world challenges.

“As a technology-driven company, we believe that impact extends beyond financial performance. It is reflected in the businesses we enable, the merchants we support, the infrastructure we build, and the opportunities we create for the next generation of innovators.

“The HabariPay Impact Report 2025 captures this journey and demonstrates our commitment to creating sustainable value for customers, partners, and the broader economy,” the Managing Director of HabariPay, Ms Eduofon Japhet, said.

“The HabariPay Impact Report 2025 represents more than a reflection on our achievements; it is a testament to the deliberate investments we have made in building sustainable payment infrastructure, empowering businesses, fostering innovation, and creating long-term value for our stakeholders.

“As we look ahead, we remain committed to expanding our capabilities, deepening our impact, and shaping the future of digital payments through technology-driven solutions that are secure, scalable, and inclusive,” she added.

Banking

Foreign Exhibitors in Nigeria as Ecobank Adire Lagos Kicks Off June 11

Published

5 days ago

10/06/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

Some top foreign exhibitors participating in the much-anticipated Ecobank Adire Lagos Experience commencing on Thursday, June 11, 2026, are already in Nigeria.

The four-day event, closing on June 14, will witness participation from notable African fashion brands from Ghana, Sierra Leone, Senegal and the Benin Republic.

Among the international exhibitors confirmed for this year’s edition are Creative Hub Africa and Shades of Class from Sierra Leone, Drame Khadidatou from Senegal, Tampoori from Ghana, and Naylah Collection from the Republic of Benin. Their participation highlights the growing continental appeal of the Ecobank Adire Lagos Experience as a platform for cultural exchange, business collaboration and market access across Africa.

More than 100 exhibitors and vendors, including leading Nigerian brands such as Obida Design Associates, This Is Us, Imani Kids, Ashabi Fads, E25Dresses, Miné by Ejiro Amos Tafiri, Buss Fabrics Store, Aina Aladire and many others, will participate, showcasing the richness of African craftsmanship, innovation and entrepreneurship.

It was gathered that organisers are putting finishing touches to the venue of the exhibition, the prestigious Ecobank Pan African Centre (EPAC) on Victoria Island, Lagos.

All necessary arrangements to ensure a seamless, secure and memorable experience for exhibitors and attendees are being put in place by the bank, further underscoring its commitment to promoting African creativity, entrepreneurship and intra-African trade.

The Head of SMEs, Partnerships and Collaborations at Ecobank Nigeria, Mrs Omoboye Odu, said attendees can look forward to a vibrant showcase of fashion, craftsmanship, art, music, culture and entrepreneurship, with participants drawn from Nigeria and several other African countries.

“We are fully prepared and excited to welcome guests from across Nigeria and the African continent to another edition of the Ecobank Adire Lagos Experience. From exhibition spaces and cultural showcases to networking opportunities and customer engagement activities, every necessary arrangement has been put in place to ensure a seamless and rewarding experience for all attendees,” she stated.

“The Ecobank Adire Lagos Experience continues to evolve as a unique platform that connects creatives, entrepreneurs and consumers from across Africa. Attendees can look forward to exceptional products, interactive sessions, entertainment, cultural exhibitions and valuable opportunities to build relationships, explore new markets and expand their businesses,” Mrs Odu added.

Beyond the exhibition, participants will have opportunities to network, explore business partnerships, discover unique products and experience the diversity and vibrancy of African culture.

The event is open to the public, and visitors can look forward to an immersive experience that seamlessly blends tradition, innovation, fashion, enterprise and entertainment in a grand celebration of Africa’s creative economy.

Over the years, the Ecobank Adire Lagos Experience has grown into one of Nigeria’s foremost platforms for promoting indigenous textile production, supporting small and medium-sized enterprises, and showcasing the ingenuity of African creatives.

The programme has also played a significant role in expanding market access for businesses while preserving and celebrating Africa’s rich cultural heritage.