Economy

UK Court Grants NNPC $100m Reprieve

Published

9 years ago

05/04/2017

By Modupe Gbadeyanka

A Supreme Court in the United Kingdom has granted a reprieve to Nigerian National Petroleum Corporation (NNPC) over a $100million Bank guarantee in a case involving the agency and a service company, IPCO (Nigeria) Limited.

IPCO had referred its claims to arbitration in Nigeria and obtained an Arbitral Award of $154 million in 2004, with annual interest running at 14 percent, leaving NNPC with no option than to promptly challenge the award at the Federal High Court in Lagos.

The reprieve was the latest in the protracted dispute arising from the contract between NNPC and IPCO for the construction of the Bonny Export Terminal (BET) Project in Port Harcourt, Nigeria.

Reacting to the judgment, NNPC Group Managing Director, Dr Maikanti Baru, said he was delighted on the new development, commending the efforts of the legal team that secured judgment in favour of the corporation.

He said no stone would be left unturned to extricate NNPC from encumbrances that may impede the Corporation’s access to hard earned funds which are much needed to execute developmental projects by the various tiers of government in the country.

The development is a significant decision in the history of the case as the English Supreme Court has not only discharged NNPC from the responsibility to sustain the additional security of $100million in favour of IPCO but it also further reiterated the finding of the English Commercial Court and the Court of Appeal that NNPC has a good prima facie case that IPCO procured the Arbitral Award by fraud.

Additionally, the decision of the Supreme Court has clarified conclusively the limits of an enforcing Court’s power to order security as a condition on the right to have a decision of a properly arguable challenge under the New York Convention 1958 and the English Arbitration Act 1996.

Since 2004, IPCO has repeatedly sought to enforce the award in England prior to the conclusion of NNPC’s challenge of the Arbitral Award in Nigeria.

It would be recalled that in 2008, during one of IPCO’s attempts to secure an order for the enforcement of the award in the UK, NNPC claimed it discovered evidence that IPCO had allegedly forged documents relating to the claims and the related arbitration in Nigeria, and as a result, the parties agreed in 2009 to adjourn the enforcement proceedings in England, in order to await the determination of the fraud allegations in Nigeria.

In 2012, IPCO again applied to the English Commercial Court to enforce the award despite the agreement on the adjournment of the enforcement action.

IPCO’s application was however, dismissed on March 14, 2014, holding inter alia that NNPC had made out a good prima facie case of fraud giving NNPC a realistic prospect of proving that the whole award should be set aside. IPCO however appealed to the UK Court of Appeal.

In 2015, the UK Court of Appeal decided that the delays in the Nigerian proceedings required the English Court to lift the adjournment and to decide whether to allow enforcement following a trial of the fraud allegations in the English Court.

Both the Commercial Court and, the Court of Appeal concluded that the fraud allegations against IPCO were made bona fide, that NNPC has a good prima facie case that IPCO practised a fraud on the Arbitral Tribunal, and that NNPC has a realistic prospect on that basis of proving that the whole award should be set aside.

However, the UK Court of Appeal ordered NNPC to provide an additional security of $100 million (NNPC having previously provided security of $80million) as a condition of being entitled to advance a defence that enforcement should be refused because the award had been procured by IPCO’s alleged fraud.

Subsequently, NNPC appealed to the UK Supreme Court to decide whether the English court, as an enforcing court, is empowered to require security for money payable under the award (or any part thereof) from a party resisting enforcement of such award as a condition for being entitled to advance a good and arguable defence that enforcement would be contrary to English public policy because the award was allegedly procured by fraud.

On March 1, 2017, the UK Supreme Court unanimously set aside the Court of Appeal’s Order, allowing NNPC to advance its defence in the English Commercial Court free of any such conditions.

Economy

SEC Okays Emerald Holdco’s Takeover of N6.94bn Beta Glass Minority Shares

Published

46 minutes ago

08/07/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

Emerald Holdco has been authorised by the Securities and Exchange Commission (SEC) to proceed with its mandatory takeover offer (MTO) of shares of Beta Glass Plc worth N6.94 billion held by minority investors.

In a notice to the Nigerian Exchange (NGX) Limited, it was disclosed that the MTO involves 11,741,509 ordinary shares of Beta Glass at a unit price of N590.94.

Shareholders of the company are required to fill out the MTO form for the exercise, which opened on Tuesday, July 7, 2026, and is expected to close at 5:00 pm on Tuesday, August 4, 2026.

Business Post reports that Emerald Holdco recently completed the acquisition of 100 per cent of the shares of Emerald Nigeria Intermediate Holdings B.V. (formerly Frigoinvest Nigeria Holding B.V), which owns 76.03 per cent of Packaging Industries Nigeria Limited (formerly Frigoglass Industries (Nigeria) Limited) from the Frigoglass Group.

As part of this transaction, Emerald Holdco has assumed indirect ownership of 331,260,999 ordinary shares in the company, previously held by Frigoglass Group, which represent approximately 55.22 per cent of the issued share capital of the organisation.

In accordance with the Nigerian Takeover Rules, Emerald Holdco is required to make a takeover offer to all other shareholders of Beta Glass. It is permitted to make an offer for all or a portion of the shares held by the other shareholders of the firm.

Following this requirement, Emerald Holdco sought and obtained approval from its board and shareholders to launch a takeover offer to all qualifying shareholders for the acquisition of up to 11,741,509 ordinary shares, representing 1.96 per cent of the total issued and fully paid-up share capital of Beta Glass.

The board and shareholders granted this approval on February 5, 2026, and March 3, 2026, respectively.

Economy

NASD Index Crashes 6.11% as FrieslandCampina Shares Tumble

Published

1 hour ago

08/07/2026

Adedapo Adesanya

By Adedapo Adesanya

A plunge in the share price of FrieslandCampina Wamco Nigeria Plc purged the NASD Over-the-Counter (OTC) Securities Exchange by 6.11 per cent on Tuesday, July 7.

The milk producer, famed for brands like Peak Milk and Three Crowns, was the sole price loser during the session, shedding N12.41 to end at N139.41 per unit compared with the previous day’s N151.82 per unit.

As a result, the market capitalisation of the alternative stock market went down by N155.40 billion to close at N2.387 trillion, in contrast to Monday’s closing value of N2.543 trillion, and the NASD Security Index (NSI) fell by 258.90 points to close at 3,978.07 points compared with the preceding session’s 4,236.97 points.

Business Post reports that NASD Plc was the only price gainer for the day, gaining 80 Kobo to close at N34.10 per share versus N33.30 per share.

Yesterday, the value of securities surged by 98.3 per cent to N15.9 million from the preceding session’s N2.8 million, the volume of securities increased by 183.6 per cent to 323,780 units from 114.175 million units, and the number of deals grew by 61.1 per cent to 29 deals from 18 deals.

At the close of business, Great Nigeria Insurance (GNI) Plc remained the most traded security by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 70.7 million units exchanged for N4.9 billion.

GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.

Economy

Naira Falls to N1,375/$1 at Official Market, N1,395/$1 at Parallel Market

Published

2 hours ago

08/07/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira weakened by N7.48 or 0.55 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, July 7, to N1,375.75/$1, in contrast to the previous day’s N1,368.27/$1.

Equally, the local currency fell against the Pound Sterling in the same official FX market yesterday by N14.66 to trade at N1,841.57/£1 versus Monday’s closing price of N1,826.91/£1, and against the Euro, it depreciated by N10.61 to close at N1,573.30/€1 compared with the preceding session’s N1,562.69/€1.

In the parallel market, the Nigerian currency lost N5 against the US Dollar during the trading day to settle at N1,395/$1 compared with the previous day’s N1,390/$1, and at the GTBank forex desk, it remained unchanged at N1,831/$1.

Liquidity fluctuations amidst sustained FX inflows from foreign portfolio investors, exporters, non-bank corporates and other sources weakened the Naira despite rising external reserves. Updated data showed that gross external reserves increased to $ 51.525 billion from $51.549 billion.

Daily interbank FX turnover stood at $54.180 million across 70 deals, from $70.430 million.

The Central Bank of Nigeria (CBN) signalled its intention in the first half of the year to slow the Naira rally and avoid capital flight by purchasing US Dollars from the market.

As for the cryptocurrency market, benchmarked tokens dipped following renewed strikes on Iran by the US after an attack on commercial ships in the Strait of Hormuz. The US Central Command forces said it began launching a series of powerful strikes against Iran to impose high costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway.

The latest exchange of fire will test the fragile ceasefire as Iran struck back by targeting US bases in Bahrain and Kuwait. The renewed attacks in the Middle East have doused the flames of the recent rally, with markets losing $50 billion over the past 12 hours.

Cardano (ADA) fell by 5.8 per cent to $0.1695, Solana (SOL) dropped 3.4 per cent to sell at $78.24, Ripple (XRP) depreciated by 3.3 per cent to $1.08, Dogecoin (DOGE) declined by 3.2 per cent to $0.0724, and Binance Coin (BNB) slid by 1.9 per cent to $567.58.

Further, Ethereum (ETH) went down by 1.1 per cent to $1,751.40, Bitcoin (BTC) lost 0.8 per cent to quote at $62,538.88, and TRON (TRX) decreased by 0.4 per cent to $0.3289, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.