Connect with us

Economy

N5bn Debt: Court Authorises Ecobank to Sell Obat Oil’s Asset

Published

on

Febson Hotels & Malls Obat Oil

By Modupe Gbadeyanka

Ecobank has been given the authority to sell an asset belonging to Obat Oil and Petroleum Limited, with proceeds to be used to offset a debt worth N5 billion.

The authorisation was given on Thursday by Justice Hassan Babangida of the High Court of the Federal Capital Territory in Jabi, Abuja.

The property to be sold by Ecobank, which filed the suit before the court, is Febson Hotels & Malls, located on Plot 2425, Herbert Macaulay Way, Abuja.

The lender dragged Obat Oil, owned by the Olugbo of Ugbo Kingdom of Ondo State, Mr Fedrick Akinruntan, to court, claiming that the firm failed to honour an earlier agreement reached for the sale of the hospitality company to pay back the N5 billion debt.

ALSO READ  Senate Passes New CAMA Bill to Ease Business Transactions

According to the counsel to Ecobank, Mr Kunle Ogunba (SAN), there was an initial agreement between both parties on the sale of the hotel, which was adopted by a Lagos State High Court.

He argued that Obat Oil, which promised to sell the asset by end of 2019, after informing the bank that it had found a buyer in November 2019, failed to fulfil this pledge.

ALSO READ  Budget: NASS Must Not Fight Presidency—Udoma

But the counsel to Obat Oil, Mr Olalekan Ojo, stressed that Ecobank was not the right party to enforce the agreement reached between the parties because it had transferred this authority to a third party known as ETI Specialised Finance Company Limited.

However, in its judgment, the court held that there was nothing to prove that Ecobank has indeed transferred its power to sell the property in question to ETI Specialised Finance Company Limited.

ALSO READ  Ahmed Inaugurates Kwara PPP Bureau Board

“The court hereby orders the issuance of a writ for the attachment and for sale of the property known as Febson Hotels & Malls and the sum of N5 billion to be realised from the sale should be paid to the applicant,” the court ruled.

Meanwhile, Obat Oil has filed a suit on Thursday to upturn this judgement at the court of appeal. It has also filed an application for stay of execution of the judgment.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

Economy

NGX Lists 29.4 billion GT HoldCo Shares at N28.55 Each

Published

on

GT HoldCo Shares

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited has finally listed 29,431,179,224 ordinary shares of Guaranty Trust Holding Company (GT HoldCo) Plc on its trading platform.

The stocks were admitted on the exchange on Thursday, June 24, 2021, after the delisting of the entire GTBank equities on the same platform.

Business Post reports that the shares were listed today at a unit price of N28.55.

Last Friday, the stock exchange placed trading in the equities of GTBank on full suspension ahead of their delisting to allow the introduction of GT HoldCo shares.

ALSO READ  Senate Passes New CAMA Bill to Ease Business Transactions

Today, the GTBank shares were removed from the exchange, a total of 29,431,179,224 and were replaced with 29,431,179,224 units of GT HoldCo.

Confirming this development, the NGX in a circular said, “We refer to our market bulletin with reference number NGX REG/LRD/MB16/21/06/18 dated June 18, 2021, wherein the market was notified that trading in the shares of Guaranty Trust Bank Plc (GTB) was placed on full suspension effective Friday, June 18, 2021, in preparation for the delisting of GTB and listing of the Holding Company, Guaranty Trust Holding Company Plc (GT HoldCo).

ALSO READ  Obat Oil, Others Get Licence to Lift Nigeria's Crude Oil

“The market is hereby notified that the entire 29,431,179,224 issued shares of GTB were delisted from the daily official list of the NGX today, June 24, 2021, while GT Holdco’s entire issued share capital of 29,431,179,224 ordinary shares of 50 kobo each were also today, June 24, 2021, listed on the daily official list of NGX at N28.55 per share.

“The delisting of GTB and listing of GT HoldCo on NGX is pursuant to the Scheme of Arrangement between Guaranty Trust Bank Plc and the holders of its fully paid ordinary shares of 50 kobo each as approved by the Securities and Exchange Commission (SEC) and sanctioned by the court.”

ALSO READ  Shareholders Authorise Notore Chemical to Raise N30bn

GTBank restructured its business to allow it to offer more services and improve the earnings and value of the company. This led to the change to a financial HoldCo, with GTBank becoming a private company and will operate as a banking institution.

Other subsidiaries were created to offer services in financial technology (fintech), insurance, asset management and other sectors.

Continue Reading

Economy

June 2021 Allocation to FG, States, LGs Drops to N605.96bn

Published

on

June 2021 allocation

By Adedapo Adesanya

The federal government, the 36 states of the federation and the 774 local government areas shared the sum of N605.96 billion from the revenue generated in May 2021.

This was disclosed by the Federation Accounts Allocation Committee (FAAC) in a communique released on Thursday after its meeting held via virtual conferencing.

Business Post reports that the amount shared by the three tiers of government for the June 2021 allocation was lower than the N616.9 billion disbursed last month.

Giving a breakdown of the disbursement, the committee explained that from the inclusive cost of collection to Nigeria Customs Service (NCS), Department of Petroleum Resources (DPR) and Federal Inland Revenue Service (FIRS), the federal government received N242.1 billion, the states received N194.2 billion, while the local government councils got N143.7 billion.

ALSO READ  NCDMB Builds Oil & Gas Park in Cross River

The nine oil-producing states of Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Abia and Lagos all received N26.9 billion as a 13 per cent derivation of mineral revenue.

The communique issued by the FAAC at the end of the meeting indicated that the gross revenue available from the Value Added Tax (VAT) for May 2021 was N181.1 billion as against N176.7 billion achieved in the preceding month of April 2021. This resulted in an increase of N4.368 billion.

ALSO READ  Budget: NASS Must Not Fight Presidency—Udoma

The distribution is as follows; federal government got N25.3 billion, the states received N84.2 billion and local government councils received N58.9 billion.

The distributed statutory revenue of N428.198 billion received for the month was lower than the N497.385 billion received for the previous month by N69.197 billion, from which the federal government received N175.5 billion, states got N89.0 billion, while the LGs got N69.6 billion, and the 13 per cent mineral derivation handed to the nine oil states amounted to N24.666 billion.

ALSO READ  Lagos Waives N410m Interest on N2.8bn Loans to MSMEs

The communique also revealed that Companies Income Tax (CIT), and Oil and Gas Royalties, Import and Excise Duty decreased in the month, meaning only VAT increased in the month under review, although marginally.

The communique, however, disclosed that total revenue distributable for the current month inclusive of gross statutory revenue of N357.9 billion, VAT of N168.4 billion, solid mineral revenue of N7.9 billion, exchange gain of N1.7 billion and augmentation from oil and non-oil revenue of N50 billion and N20 billion respectively brought the total distributable revenue to N605.958 billion.

Continue Reading

Economy

National LPG Takes Sensitization to 12 States

Published

on

Domestic LPG

By Adedapo Adesanya

The National Liquefied Gas Petroleum (LGP) sensitization and awareness campaign to reduce gas flare has kickstarted in 12 states across the country.

Speaking at a two-day sensitization and awareness campaign held in Abuja, Mr Dayo Adeshina, the programme manager National LPG expansion implementation plan (NLEIP), said the exercise was the commitment of the climate change initiative to reduce emission by 20 per cent.

He said the National LPG pilot programme, which will start after the sensitization, is to begin in Enugu and Ebonyi States for South-East then to the South-South States of Delta and Bayelsa and in the South West – Lagos and Ogun.

ALSO READ  Lagos Waives N410m Interest on N2.8bn Loans to MSMEs

In the North West are Sokoto and Katsina States; the North East batch will be done in Bauchi and Gombe States while in the North Central, it will kick off in Niger and the Federal Capital Territory (FCT).

He said, “The sensitization awareness campaign is targeted at 12 pilot states, two in each geo-political zone. During the campaign, we will highlight the importance of the LGP to the government and the people.

“Every year almost nine hundred thousand people are affected by the effects of kerosine and charcoal which leads to malaria, the government plan is to display the energy mixture which currently stands at 65 per cent, kerosine 30 per cent, LPG 5 per cent.

ALSO READ  Ahmed Inaugurates Kwara PPP Bureau Board

“LPG would ensure accessibility, acceptability and affordability.”

Mr Adeshina said to drive the exercise well, an inter-ministerial committee on LPG was constituted and is being headed by the Vice President, Mr Yemi Osinbajo, adding that the composition of the committee shows the commitment of the federal government to the expansion and implementation of LPG in Nigeria.

“So, to make it available, some of the policy directives were worked on and past in 2017, the government will remove necessary bottlenecks,” he said.

ALSO READ  Obat Oil, Others Get Licence to Lift Nigeria's Crude Oil

LPG is a fossil fuel closely linked to oil. As a fuel, it is used for cooking, lighting, and central heating. It is a clean-burning, non-poisonous, dependable and high-performance fuel stored and transported in containers as a liquid, but is generally drawn out and used as gas.

LPG has a very wide variety of uses, mainly used across many different markets – agricultural, recreation, hospitality, calefaction, construction, sailing and fishing sectors – as an efficient fuel.

Continue Reading

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: