Economy

Japaul Operations Under Serious Threat

Published

7 years ago

07/05/2019

Dipo Olowookere

**As Access Bank Gets Court Order to Seize Properties

By Dipo Olowookere

If urgent steps are not taken, Japaul Oil & Maritime Services Plc, one of the companies listed on the Nigerian Stock Exchange (NSE), may not be able to conduct its normal business interests.

This is because Access Bank Plc, another publicly quoted firm, has obtained a Mareva judgment to virtually take control of the company.

In suit No: FHC/L/CS/29/19, Justice C. J. Aneke of the Federal High Court sitting in the Lagos granted the lender “An Order for the immediate Arrest and detention of the Vessels MV JAPAUL A TUGBOAT AND MV DOMINON (MV PINA) TUGBOAT, THE VESSELS JD-1 DREDGER and JD 11 DREDGER the 1st, 2nd, 3rd and 4th Defendants (the mortgaged properties) anywhere they may be found within the Nigerian territorial waters within the jurisdiction of this Honourable Court pending the hearing and determination of the substantive suit.

The judge also granted the bank, “An ORDER OF MANDATORY PRESERVATIVE INJUNCTION is made restraining the 3rd Defendant, JAPAUL MINES & PRODUCTS LIMITED, JAPAUL OIL & MARITIME SERVICES PLC AND PAUL ABIODUN JEGEDE, OWNERS OF JAPAUL A TUGBOAT AND MV DOMINION (MV PINA) TUGBOAT, THE VESSELS JD-1 DREDGER AND JD-11 DREDGER the 1st,2nd, 3rd, and 4th Defendants (the mortgaged properties) from registering any change or charges or mortgages to the ownership of the 1st and 2nd Defendants pending the hearing and determination of the substantive suit.”

In addition, the financial institution got, “An ORDER OF MAREVA INJUNCTION restraining the 3rd Defendant; JAPAUL MINES & PRODUCTS LIMITED, JAPAUL OIL & SERVICES PLC and PAUL ABIODUN JEGEDE, OWNERS OF JAPAUL A TUGBOAT AND MV DOMINION (MV PINA) TUGBOAT, THE VESSELS JD-1 DREDGER AND JD-11 DREDGER the 1st, 2nd 3rd and 4the Defendants herein, their agents, officers, assigns from operating the account maintained with the banks listed in schedule hereto including issuance of cheques, bank drafts, cash withdrawals or anything howsoever that would cause any sum of money to be removed from the said account pending the hearing and determination of the substantive suit.”

In a report, Proshare said, “The Mareva order made it impossible for the company to operate its accounts and sustain its activities as a going concern; the consequence of which threatened the jobs of hundreds of workers employed by the company.

“While this was at play, the listed company represented that it met its minimal requirements as a listed entity; yet the market was not availed of this information; especially as it relates to market being properly apprised of the situation and the potential contingent liabilities appropriately priced into market valuations. This is a matter we intend to interrogate in subsequent reviews on the development as it relates to the issue of market disclosure and corporate transparency.

“Far more pertinent must be the discovery that the company followed through on the complaint procedure put in place by financial regulators on matters of this type, as a means of market friendly resolution of banking excess charges with material consequence on profitability (including shareholder value). The firm represents that when such a formal complaint was made; the regulators advised them to “stay on the queue” as several cases of this nature was pending.

“This alleged response from a market regulator requires some deep reflections as it undermines the integrity of timely problem resolution mechanisms put in place to build confidence in the market and promote a veritable ‘ease of doing business’ climate.”

Japaul claimed in the court papers that it had approached Access Bank to complain about the exorbitant charges it noticed in its corporate account with the bank after an internal financial audit. The company requested that the excess charges be reversed and duly credited back into its account.

The bank declined and insisted that Japaul was in debt to the bank, and therefore, should pay up on its debt first.

While Japaul accepted indebtedness, it, however insisted that to keep the books clean and its records with the bank tidy; Access Bank should show good faith by conducting a reconciliation of the forensic report dated July 23, 2018 and reverse undisputed excess bank charges thereon; and use the amount credited to its account to (partly) offset amounts outstanding in respective of its loan.

The court papers showed no indication of this being done and indeed infers that Access Bank refused to oblige Japual’s request and went ahead to freeze the company’s account in December 2018.

This was further exacerbated when the bank, in response to the suit instituted by Japaul, approached another court in the same judicial division to seek for, and obtain an order to seize (arrest and detain) the assets (equipments) of the firm, freeze the account of the company and that of its Chairman and founder, Mr. Paul Abiodun Jegede on January 15, 2019.

The company subsequently sought redress in the same courts over what it saw as a breach of good faith between itself and its banker.

As a result of the legal confrontation, for four months (approx.) in 2019, Japaul and its Chairman were denied access to either the corporate account of the listed entity or/and that of the Chairman personally (having been a guarantor of the loan); thereby placing the company in dire operating conditions even while the substantive suit was yet undetermined.

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Economy

NASD Exchange Falls 0.22% After Investors Lose N4.8bn

Published

4 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange weakened by 0.22 per cent on Tuesday, April 28, with the market capitalisation down by N4.8 billion to N2.420 trillion from N2.425 trillion, and the NASD Unlisted Security Index (NSI) down by 9.01 points to 4,044.96 points from 4,053.97 points.

During the session, the price of Central Securities Clearing System (CSCS) Plc went down by N1.82 to N767.05 per share from N78.87 per share, while FrieslandCampina Wamco Nigeria Plc appreciated by N1.90 to N100.00 per unit from N98.10 per unit.

According to data, the value of trades increased by 265.7 per cent to N27.1 million from N7.4 million units, and the volume of transactions surged by 305.2 per cent to 1.3 million units from 319,831 units, while the number of deals decreased by 6.9 per cent to 27 deals from 29 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.8 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.

GNI Plc also finished as the most traded stock by volume on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.

Economy

Naira Crashes to N1,380/$ at Official Market, N1,390/$1 at Black Market

Published

5 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Pressure is beginning to mount on the Nigerian Naira in the different segments of the foreign exchange (FX) market despite an oil windfall triggered by the Middle East crisis.

On Monday, April 27, the domestic currency further weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N16.47 or 1.2 per cent to N1,380.71/$1 from the previous day’s N1,364.24/$1.

It was not different against the Pound Sterling in the same market window, as it lost N16.04 to trade at N1,863.76/£1 versus Monday’s closing rate of N1,847.72/£1, and against the Euro, it slipped by N12.72 to close at N1,615.01/€1 versus N1,602.29/€1.

The Naira also depreciated against the Dollar at the black market yesterday by N5 to quote at N1,390/$1 compared with the previous price of N1,385, and at the GTBank forex counter, it further crashed by N9 to settle at N1,379/$1 compared with the preceding session’s N1,370/$1.

The continued decline of the Naira comes as traders increasingly seek other safe-haven currencies amid continued global disruptions.

The benefit awash in the global market is making foreign portfolio investors stay short in Nigerian markets. Despite this, the daily FX publication released showed that interbank turnover rose to $98.829 million across 78 deals, up from $76.65 million.

Meanwhile, the cryptocurrency market remained cautious, with Bitcoin (BTC) trading at $77,216.66 despite surging oil prices and geopolitical tensions over a potential extended US naval blockade of the Strait of Hormuz.

Analysts say the supply overhang has finally dried up, and the sellers who were spooked by macro shifts or quantum fears have already exited, leaving the market much thinner on the sell-side.

Investors will await decisions made by central banks this week. The US Federal Reserve will announce its rate decision later on Wednesday, while the European Central Bank (ECB) follows on Thursday.

Ethereum (ETH) gained 1.5 per cent to trade at $2,324.59, Dogecoin (DOGE) chalked up 1.4 per cent to sell for $0.1016, Solana (SOL) appreciated by 0.6 per cent to $84.85, Cardano (ADA) grew by 0.5 per cent to $0.2483, and Binance Coin (BNB) advanced by 0.2 per cent to $627.15.

However, TRON (TRX) depreciated by 0.6 per cent to $0.3224, and Ripple (XRP) lost 0.03 per cent to sell at $1.39, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were unchanged at $1.00 each.

Economy

Oil up 3% as Hormuz Disruption Outweighs UAE OPEC Exit

Published

5 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.

An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.

Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.

Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.

This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.

The UAE could quickly ⁠add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.

The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.

Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.

The war in Yemen broke whatever was left of diplomatic patience.

President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.

The Idemitsu Maru, ‌a Panama-flagged ⁠tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.

Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.

The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.