Banking
Oil Firm Sues Union Bank for N6.7b over Contract Breach
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.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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