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

Ecobank Partners CreditCorp for Flexible Loans to Customers

Published

21 hours ago

20/01/2025

Dipo Olowookere

By Dipo Olowookere

Ecobank Nigeria Limited has taken a significant step to ensure its customers get cheap personal loans by partnering with the Nigerian Consumer Credit Corporation (CrediCorp).

The service is available to civil servants and private-sector employees whose salaries are paid through Ecobank.

New customers can also benefit upon presentation of employer undertaking to pay subsequent salaries through Ecobank.

Starting this January, the initiative provides flexible repayment options and a streamlined loan application process.

These loans can be used to finance a variety of personal needs, including paying school fees, rent, maintenance costs, medical bills, car purchase and repairs, asset purchase, and more.

The loans come with affordable interest rates, a two-year term, and a repayment plan that ensures equal monthly instalments, including principal and interest, do not change throughout the life of the facility, regardless of the economic situation of the country.

According to the Head of Consumer Banking at Ecobank Nigeria, Ms Adeola Ogunyemi, the loans will provide salary earners, both in the public and private sectors, with better access to financial products.

“This collaboration is an excellent opportunity to serve our customers, and we believe it will improve the quality of life for many Nigerians.

“Eligible customers can use the loans to purchase electronics, solar systems, or CNG vehicle conversions, as well as for other essential expenses like school fees, rent, upkeep, medical bills, and car maintenance.

“We encourage working-class Nigerians to open an account with Ecobank to benefit from this initiative,” Ms Ogunyemi stated.

CrediCorp, a Development Finance Institution (DFI) established by the federal government, is focused on enhancing access to consumer credit for Nigeria’s workforce.

Under the partnership, CrediCorp will provide funds to Ecobank, for on-lending to qualified customers.

The arrangement covers personal loans, as well as asset financing for items like solar systems, home appliances, phones, laptops etc. and vehicle conversions to compressed natural gas (CNG).

Ecobank Nigeria is part of the Ecobank Group, a leading pan-African banking organization. The bank provides a full range of financial services to individuals, businesses, and institutions through its network of over 240 branches and 35,000 Xpress Point agencies across Nigeria.

Banking

131 Wema Bank Customers to Win N11m January 24

Published

2 days ago

19/01/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

No fewer than 131 customers of Wema Bank Plc will win N11 million in cash prize in the company’s 5 for 5 promo season 4 monthly draw fixed for Friday, January 24, 2025, in Warri, Delta State.

According to a statement from the lender, from the 131 customers, 80 of them will win N25,000 each, 40 will win N100,000 each, eight domiciliary account holders will win N250,000 each and three will get N1 million each, with one to be from Warri, venue of the event.

The 5 for 5 promo selects winners from the bank’s pool of active and transacting customers, via thoroughly regulated electronic live draws.

The first 3 seasons saw the Wema Bank 5 for 5 Promo disburse over N150 million to 2,378 Nigerians across the six geopolitical zones in Nigeria, and with the launch of Season 4 on October 1, 2024, Wema Bank raised the bar, setting aside a whopping N135 million for disbursement this season alone.

So far, over 1,000 Nigerians have won cash prizes in daily, weekly and monthly draws, with 540 customers winning in 55 daily draws, 550 customers winning in 11 weekly draws and 262 customers winning in 2 monthly draws; totalling over N27 million disbursed so far.

The third monthly draw of the season, which also happens to be the first monthly draw of 2025, is set to hold this January in Warri, and another 131 winners will emerge from the draw.

“The goal for us with the Wema Bank 5 for 5 promo is giving back, providing support and rewarding our loyal customers, it’s been one of the key means through which we say ‘thank you’ as a Bank, and four years strong so far, it’s only gotten better with each season.

“We made millionaires in December ahead of Christmas and it was heartwarming to hear from our amazing customers how instrumental these rewards were in sorting out some bills. Now, we are even more ready to kickstart 2025 on a millionaire note,” the chief executive of Wema Bank, Mr Moruf Oseni, said.

“As a tradition, the 5 for 5 Promo continues to tour different locations across the six geopolitical zones, however, our winners are always selected from across the country. So even though one of the millionaires will be from Warri where this draw will hold, there’s still room for two more millionaires and over 120 more winners of cash ranging from N25,000 to N250,000.

“The joy for us is in the smiles that are made, the stories that are positively impacted and the hope that these cash rewards bring to the winners; from students to small business owners, working professionals, and so on.

“We are all too familiar with the running ‘100 days of January’ reality that plagues a lot of us after the heavy spending that comes with December, so this draw is the perfect opportunity to support our customers beyond the daily and weekly draws that we hold every other weekday.

“I congratulate the winners in advance, and I encourage every new and existing Wema Bank customer to seize this opportunity and start transacting today. The 5 for 5 promo is as transparent as can be, so anyone can win, provided they meet the minimum requirements,” he added.

Banking

UBA Completes Routine System Maintenance on Card Service

Published

2 days ago

19/01/2025

Dipo Olowookere

By Dipo Olowookere

The United Bank for Africa (UBA) Plc has completed its scheduled routine system maintenance on its card service.

The financial institution over the weekend informed its customers of a scheduled maintenance on its card service from 12 am to 5 am of Sunday, January 19, 2025.

Customers were told that the action could make them experience service disruption while using the UBA cards for financial transactions.

The lender said it was carrying out the maintenance for better service delivery, apologising for any issue they may encounter during the period.

“In line with our commitment to provide you with exceptional experience and to enable us to serve you better, we will be carrying out a scheduled routine maintenance on our card services.

“During this period, you may not be able to use your Debit & Credit Card. Please use our alternative channels, LEO, *919#, Mobile App or Internet Banking for transactions

“An update will be provided as soon as the maintenance is completed.

“We appreciate your understanding and apologize for any inconvenience this may cause. Please be assured that we are committed to providing you with excellent banking services,” the notice earlier sent to customers said.

After the completion of the process, UBA mailed another statement to customers, informing them they could use their cards without any issue.

“We are pleased to inform you that our scheduled routine system maintenance has been completed.

“You can now enjoy safer and quicker transactions on our card service.

“We regret any inconvenience you may have experienced, and assure you of our commitment to continuously provide you with excellent service,” the statement sighted by Business Post read.