Economy
N40b Debt: MRS Oil, AMCON Agree Out-of-Court Settlement
In a bid to settle out of court the debt of N40billion,Asset management Corporation of Nigeria AMCON and MRS Holding limited has filed terms of settlement before a Federal High court in Lagos south west Nigeria.
MRS Oil and Gas Company limited and its subsidiaries are primary obligors under a syndicated loan facility in the sum of $40 million availed to them by a consortium of Nigerian banks pursuant to a bridge facility agreement dated November 18, 2008 and a supplemental bridge facility agreement dated September 18, 2009.
The syndicated loan facility was for the purpose of acquiring Chevron Texaco downstream operations in West Africa.
The security package for the syndicated loan facility included a personal guarantee from the Chairman of MRS Oil and Gas company Mr Sayyu Dantata, as well as a corporate guarantee and indemnity from each of Corlay Global S. A., Ovals Trading S. A. and Societe Nationale D’Operations Petrolieres de Cote D’Ivoire.
The syndicated loan facility was subsequently classified as non-performing loan and acquired by AMCON pursuant to the provisions of the AMCON Act.
In a bid to recover the debt AMCON instituted a suit AMCON versus Petroci and another,. MRS subsequently applied to be joined as a party to the action and filed a counter -claim against Petroci.
In that suit, AMCON and Petroci executed Terms of Settlement on June 16, 2015 in the sum of $90 million, the terms were subsequently entered as the consent judgement on June 29, 2015.
In relation to the proportion of the debt that remains outstanding AMCON commenced suit (winding Up Proceedings) on July 4, 2016 against MRS as the respondent on the ground of MRS inability to pay its debt.
The winding up proceedings seeks an order of the court winding up MRS for being insolvent company.
AMCON also commenced suit number FHC/L/BK/04/2016(the bankruptcy Proceedings against Mr Sayyu Dantata, Chairman of MRS, on the basis of a personal guarantee dated September 17, 2008 to repay the sum of N350 million in the event of a default by MRS to repay the syndicated loan facility.
The parties now agreed to settle fully and finally the dispute concerning the debts
Now it is hereby agreed that:
- MRS shall pay to AMCON, the sum of N42 billion in full and final settlement of all sums due and owing to AMCON by MRS pursuant to the syndicated loan facility extended to MRS, and AMCON shall hereby release and forever discharge all claims against MRS, its parent, subsidiaries, assigns, transfees, representatives, principals, agents, officers, and directors subject to the following terms and conditions:
MRS shall between the 1st day of February 2018 and 10th day of April 2018 pay over to AMCON the sum of N2 billion of which the sum of N1 billion is acknowledged as having been paid.
(b)MRS shall pay the balance of N40 billion over a period of four years at an interest rate of 9% per annum on a quarterly basis.
(c)The sum of N2.5 billion plus accrued interest shall be paid by MRS on a quarterly basis, commencing ninety days from the effective date being 1st February 2018.
(d)MRS shall provide an acceptable unconditional bank guarantee with four year tenor from a reputable bank to back up the quarterly payment envisaged under this Terms of Settlement. A maximum period of ninety days shall be afforded to MRS to procure and provide the bank guarantees envisaged under this Terms of Settlement.
(e)MRS agrees to be bounded by the terms and conditions contained in the offer letter dated March 22, 2018 to which a breach of any of these terms would automatically become enforceable.
(f)AMCON shall accept lump sum prepayment without penalty.
2 AMCON shall be entitled to call in the bank Guarantee in the event of a default in making the quarterly payments, without the requirement to give notice.
AMCON shall be entitled to cancel all the concessions granted under this terms of settlement and call in the total balance outstanding in the event of default of any of the terms and conditions undertaken by MRS under the terms of Settlement
- Upon full payment of the total sum of N42 billion in full and final settlement of all sums due and owing to AMCON, AMCON agrees to release and discharge MRS, its parent, agents and Directors from liability and obligation to it in connection with the debts.
- It is expressly agreed between parties that the terms of settlement herein compromises all prior and existing judgement obtained against MRS and its directors.
- Upon execution of this agreement and payment of the sum of N2 billion, as contained in clause 1(a) above, AMCON shall immediately discontinue and withdraw all pending court case between parties in relation to the debt subject mystery of this settlement agreement, the winding up proceeding and the Bankruptcy proceedings and filed and adopt these terms as a consent judgement in the winding up proceedings.
- These terms of settlement are expressly without prejudice to MRS’s ability to maintain and pursue the MRS’s Counter Claims in the Petroci Proceedings and/or purse the MRS’s counter claims against Petroci in arbitration or otherwise.
- AMCON agrees, on behalf of itself and on behalf of its parent and agents or Directors, not to sue, commence, voluntarily aid in any way prosecute against MRS or it agents or Directors any action or proceedings concerning the release claims, in this jurisdiction or any other
- Parties to bear their respective litigation cost.
The terms of Settlement was endorsed on behalf of AMCON by: their counsel Adeniyi Adegbomire SAN, Head, Energy group, Sulaiman Abdul Majeed, Group Head, Credict Joshua Ikioda, and a Director, Secretary, and a lawyer Oladapo Ajayi on behalf of MRS Holding limited.
By Adedapo Adesanya
The federal government has imposed an immediate nationwide ban on the export of wood and allied products, revoking all previously issued licenses and permits to exporters.
The announcement was made on Wednesday by the Minister of Environment, Mr Balarabe Lawal, during the 18th meeting of the National Council on Environment in Katsina State.
Mr Lawal said the directive, outlined in the Presidential Executive Order titled Presidential Executive Order on the Prohibition of Exportation of Wood and Allied Products, 2025, became necessary to curb illegal logging and deforestation across the country.
“Nigeria’s forests are central to environmental sustainability, providing clean air and water, supporting livelihoods, conserving biodiversity, and mitigating the effects of climate change,” the Minister said, warning that the continued exportation of wood threatens these benefits and the long-term health of the environment.
The order, published in the Extraordinary Federal Republic of Nigeria Official Gazette No. 180, Vol. 112 of 16 October 2025, relies on Sections 17(2) and 20 of the 1999 Constitution (as amended), which empower the state to protect the environment, forests, and wildlife and prevent the exploitation of natural resources for private gain.
Under the new policy, security agencies and relevant ministries are expected to enforce a total clampdown on illegal logging activities nationwide.
On his part, the Katsina State Deputy Governor, Mr Faruk Lawal Jobe highlighted the state’s history of pioneering socio-economic policies that have influenced national policy. He emphasized the importance of collaboration in addressing environmental challenges across the country.
“Environmental sustainability is critical to achieving growth and improving the quality of life of our people,” he said. “Our administration has prioritised initiatives aimed at combating desertification and promoting afforestation.”
The ban reflects the government’s commitment to safeguarding Nigeria’s shrinking forest cover and addressing climate change, while ensuring sustainable use of natural resources for future generations.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.24 per cent on Wednesday, December 17, pulling the Unlisted Security Index (NSI) up by 8.62 points to 3,614.64 points from 3,606.02 points.
In the same vein, the market capitalisation added N4.72 billion to close at N2.164 billion compared with the N2.160 trillion it ended on Tuesday.
The growth was inspired by four securities, which finished on the gainers’ log, neutralising the losses printed by two other securities on the trading platform.
MRS Oil Plc gained N17.90 on Wednesday to end at N196.90 per unit versus N179.00 per unit, NASD Plc appreciated by 59 Kobo to N58.50 per share from N57.91 per share, FrieslandCampina Wamco Nigeria Plc added 15 Kobo to sell at N60.19 per unit versus N60.04 per unit, and Industrial and General Insurance (IGI) Plc rose by 6 Kobo to 64 Kobo per share from 58 Kobo per share.
On the flip side, Golden Capital Plc extended its loss by 76 Kobo to end at N7.75 per unit versus N8.51 per unit, and Central Securities Clearing System (CSCS) Plc slipped by 35 Kobo to N39.65 per share from N40.00 per share.
Yesterday, the volume of transactions increased by 737.3 per cent to 20.4 million units from 2.4 million units, but the value of trades fell by 33.8 per cent to N72.2 million from N109.1 million, and the number of deals slid by 62.5 per cent to 21 deals from 56 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, the second position was occupied by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and the third place was taken by MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, followed by IGI Plc with 1.2 billion units valued at N420.7 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
By Dipo Olowookere
A 0.26 per cent growth was achieved by the Nigerian Exchange (NGX) Limited on Wednesday on the back of sustained bargain-hunting by investors.
This happened despite a pocket of profit-taking, with industrial goods losing 0.63 per cent and the energy index shedding 0.05 per cent.
But the insurance space increased by 2.02 per cent, the banking counter appreciated by 1.48 per cent, the commodity sector improved by 0.48 per cent, and the consumer goods segment rose by 0.03 per cent.
Consequently, the All-Share Index (ASI) went up by 383.71 points to 149,842.82 points from 149,459.11 points and the market capitalisation jumped by N244 billion to N95.525 trillion from N95.281 trillion.
The market breadth index remained positive after the bourse finished with 38 price gainers and 23 price losers, indicating a strong investor sentiment.
The quartet of First Holdco, Lasaco Assurance, Veritas Kapital, and Prestige Assurance gained 10.00 per cent to quote at N39.60, N2.75, N1.76, and N1.65, respectively, while Mecure Industries grew by 9.92 per cent to N50.40.
Conversely, Living Trust Mortgage Bank lost 10.00 per cent to close at N3.15, International Energy Insurance dropped 9.92 per cent to trade at N2.27, McNichols shrank by 6.90 per cent to N2.97, Omatek decreased by 6.84 per cent to N1.09, and Chams dipped by 6.41 per cent to N2.92.
The activity level witnessed a significant surge at midweek, with Ecobank trading 5.3 billion units for N168.7 billion.
Further, First Holdco sold 108.2 million units worth N4.2 billion, Sterling Holdings exchanged 87.3 million units valued at N606.2 million, FCMB transacted 74.3 million units worth N783.6 million, and Access Holdings sold 41.5 million units for N841.4 million.
At the close of trades, market participants traded 5.9 billion units valued at N216.2 billion in 25,205 deals compared with the 1.0 billion units worth N21.8 billion traded in 23,701 deals a day earlier, showing a rise in the trading volume, value, and number of deals by 490.00 per cent, 891.74 per cent, and 6.35 per cent, respectively.
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