Feature/OPED
Innoson, GTBank: The Bank Is Not Always The Villain
By Lukmon Akintola
A businessman who wants a loan is almost ready to do anything. He would grovel if the loan officer asks him to, he would bark like a dog if he needs to. However, the moment the loan is granted, he becomes egoistic and wants to cross all the ‘T’s and dot the ‘I’s of the contract.
This seems the story of the average Nigerian businessman who needs a loan for his business, but is just not ready to pay back, so he consciously or unconsciously schemes a way out.
Like a lazy young man being fed by his father, he begins to imagine that he could have gotten a better deal. He starts to ask himself how he didn’t see the loopholes in the contract forgetting that the so-called loopholes were the condition for granting the loan, and that he only got the loan because the bank offered it to him on their term, a term he gladly accepted.
With the number of bank/businessmen cases scattered in several courts all over Nigeria, one is forced to wonder if businessmen makeup their minds not to pay back loans obtained from banks. One is also forced to ask if these men obtaining the loans are aware that if they don’t pay back, others won’t get.
In most cases, businessmen tag the bank the villain, the bully and the thief. Tales of interest not properly calculated abound; gist of banks dragging their customers to court to recoup their monies is like a never ending story in Nigeria. But in all of the situations, businessmen and some soft brained individuals conclude that the bank is the one to be blamed.
Generally, businessmen seem to easily reach a quick concluded that the bank is always after their collateral and business. Shamefully, issues that are supposed to be sorted in court become a social media topic, a farce indeed.
One fact which can and should never be forgotten is that a man who borrows should know that he would on an agreed date payback his debt. This is the basic meaning of a loan, but it seems to elude some Nigerian businessmen.
This is not the story of GTBank and Innoson, no it is not. In fact, it is the tale of a seemingly endless trend being suffered by Nigerian banks in the hands of businessmen, who obtain loans that they don’t intend to pay back or are just too dull to manage profitably. Access Bank, Zenith Bank and several other banks have walked this path and the truth is that soon, banks might decide not to give out loans anymore, who will blame them?
The GTBank/Innoson legal battle is just another story of a loan granted with reluctance to pay back. Below is a basic analysis of what went wrong.
The Facts:
- GTBank (in 2009) granted Innoson several credit facilities (i.e loans) totalling N2,400,000,000,00 (two billion, four hundred million Naira only), to part finance working capital requirements, import new motorcycles and motorcycle spare parts, agricultural spare parts and plastic manufacturing equipment (“Imported Goods”).
- Under the loan terms agreed by Dr. Innocent Chukwuma on behalf of Innoson, proprietary interest in the Imported Goods was consigned exclusively in favour of the Bank. This means that the Bank was the exclusive owner of the Imported Goods. Accordingly, the original shipping documents (i.e. the Bills of Lading) were in the custody of the Bank, and have remained in the custody of the Bank at all times.
- Because GTBank was the exclusive owner of the imported goods, ownership of the goods could only be transferred to Innoson (or any other third party) by the Bank. The condition in the agreement between the Bank and Innoson, for the release of the Imported Goods by the Bank to Innoson, was the payment of 25% of the value of each Letter of Credit transaction by Innoson.
More Facts:
- Innocent Chukwuma approached the Bank, on behalf of Innoson, requesting the release of the shipping documents without payment of the agreed+ 25% equity. The Bank declined his request as a result of Innoson’s failure to meet the agreed conditions.
- It came to the Bank’s knowledge sometime in June, 2011 that the Imported Goods for which the Bank declined to release shipping documents to Innoson in view of its failure to meet the agreed conditions, had been fraudulently procured by Innoson.
- The Bank discovered that Innoson, under the control of Dr. Innocent Chukwuma, had forged the Bank’s endorsement on the bills of lading to the Shipping Line and fraudulently cleared the Imported Goods which were in the name of the Bank. The Imported Goods, being property of the Bank should not have been cleared from the Port without the original shipping documents being endorsed by the Bank in favour of Innoson, or any third party.
- The signatures of 4 (four) staff of the Bank, to wit, Taofeek Olalere, Dan Attah, Bunmi Adeyemi and Amazu Amalachukwu, as well as the Bank’s stamp were forged on all the shipping documents used by Innoson to fraudulently clear goods at the port. The Bank did not at any time endorse or transfer the shipping documents to Innoson, as the originals of each of the relevant Bill of Lading remain in the Bank’s custody to this very day.
- When the Bank reported the matter to the Nigeria Police, Dr. Innocent Chukwuma claimed the Bank released the shipping documents to him. Consequently, the Police commenced investigation into the Bank’s complaint, including a forensic examination of the disputed signatures, and established that the signatures of the Bank’s staff were forged, and the Imported Goods were fraudulently cleared from the Nigerian Ports Authority by Dr. Innocent Chukwuma and his accomplices.
The Police Angle:
- Police investigations confirmed that Innoson and Dr. Innocent Chukwuma deliberately set out to defraud, steal from the Bank and convert the Imported Goods belonging to the Bank by deceptive means and through forgery and misrepresentation. The unlawful takeover of the Imported Goods, which served as the Bank’s collateral, left an indebtedness in excess of the sum of N1,654,481,895.04 (one billion, six hundred and fifty four million, four hundred and eighty one thousand, eight hundred and ninety five Naira, four Kobo) as at September 26, 2012.
- Chief Innocent Chukwuma was arrested and interrogated by operatives of the EFCC, following which he agreed to make monthly payments into Innoson’s account until the full liquidation of Innoson’s indebtedness to the Bank. However, Innoson defaulted in making the agreed payments. Investigations by the Nigeria Police following a petition by the Bank in September 2013 also found Innoson and Chief Innocent Chukwuma culpable of the criminal allegations levied against them by the Bank, and Chief Innocent Chukwuma was accordingly charged to court by the Police.
- The Police filed Charge No. FHC/L/565C/2015-Inspector General Of Police And Innoson Nigeria Limited; Innocent Chukwuma;Charles Chukwuma;Maximian Chukwura; Mitsui Osk Lines; Annajekwu Sunny for fraudulent clearance of goods, forgery, conversion, stealing and conspiracy presently pending before Faji J, at the Federal High Court, Ikoyi and adjourned to November 21, 2017 for arraignment/or hearing of motion for issuance of Bench Warrant.
Innoson’s Angle:
- Innoson approached the Bank for a reconciliation of his account and pleaded for a debt forgiveness. A reconciliation was carried out on the account – which had a debit balance of N1,654,481,895.04 as at December 31, 2011. In the spirit of amicable resolution and EFCC intervention, the Bank said it agreed to forego the sum of N559,374,072.09 which represented default charges that has accrued on the account and debited in line with the loan agreement between the customer and the Bank.
- Based on this, the Bank decided to accept from the customer, the sum of N1,095,107,822.95 as full and final payment of the customer’s indebtedness to the Bank, provided that same shall be fully paid not later than (30) days from the date of the letter written to him
- Surprisingly, Innoson commenced suit no: FHC/AWK/CS/2012 against the Bank at the Federal High Court, Awka stating the bank had debited its account with excess charges totalling N559,374,072.09 and obtained judgement in excess of N4.7Billion against the Bank. Again, choosing to dishonour an agreement that was amicable reached between him and the Bank for a full and final settlement of N1,095,107,822.95 wherein the Bank graciously forgave him the sum of N559,374,072.09 which accrued on his account during the period which he abandoned his account.
- To further stall the criminal proceedings against him, Chief Innocent Chukwuma and his company instituted suits at the Federal High Court, Abuja, as well as the Federal High Court, Awka in January 2014 against The Inspector General of Police, The Nigeria Police Force and Investigating Officer(s), seeking declaratory and injunctive reliefs, including orders restraining the Police from commencing criminal proceedings against Innoson and Chief Innocent Chukwuma. Furthermore, in a bid to stall the Bank’s recovery steps, and distract the Bank from focusing on the criminal action, as well as civil actions filed for recovery of the debt, Chief Innocent Chukwuma and his company Innoson have continued to institute various spurious suits before various courts, claiming frivolous and outrageous sums against the Bank.
Court Proceeding:
- In responding to Innoson’s motion for a stay of criminal proceedings at the Court of Appeal, the Honourable Justice J.S Ikyegh on September 17, 2017 dismissed the motion for being unmeritorious and ordered that proceeding in the criminal case against Innoson should proceed.
- On October 12, 2017, the Police through its Charge No. FHC/L/565C/2015- filed an application for the issuance of bench warrant against Innocent Chukwuma; Charles Chukwuma and Annajekwu Sunny for fraudulent clearance of goods, forgery, conversion, stealing and conspiracy presently pending before Faji J, at the Federal High Court, Ikoyi and adjourned to December 8, 2017 for arraignment/or hearing of motion.
Summation:
The facts having been established, a man who obtains a loan should be ready to pay back. In this case, the bank is NOT the villain.
Lukmon Akintola writes from Lagos State
Feature/OPED
Reflection on Groups’ Kindness to Alidinma Mixed Secondary and Ute Okpu Grammar Schools
By Jerome-Mario Utomi
This piece was inspired by two separate but related events; the first has to do with the news report that Dr. Philomena Onoyona Foundation, in line with its vision of giving unwavering commitment to education and community development, recently made a strategic visit to Alidinma Mixed Secondary School in Agbor Alidinma in Ika South Local Government Area of Delta State, where it donated learning materials worth thousands of naira to the students.
The second and closely related to the above centres on the revelation that the Ute Okpu Community in Ika North-East Local Government Area of Delta State recently came alive as the 1990 Set of Ute Okpu Grammar School Old Students Association celebrated its annual reunion with a series of social responsibilities aimed at giving back to the society.
These activities, programmes and initiatives include but are not limited to; deworming of children aged 10 years and below, payment of tribute to the unsung heroes of Ute Okpu Grammar School, presentations of lecture series, bestowing of awards, testimonials, plaques and cash gifts on the school’s outstanding/dedicated teachers, staff, and alumni in recognition of their tireless efforts and unwavering commitment, and unrelenting passion for education.
At a glance, the above show of love by the Foundation and the Old Students Association portrays a bunch that recognizes Social Responsibility as an ethical framework in which individuals or corporations must act in the best interests of their environment and society as a whole, fulfilling their civil duty and taking actions that are beneficial to both the present and upcoming generations.
Beyond the donations, worthy of mention are their messages of hope and resolve to continually support both the present and future students within the state and beyond.
Take as an illustration, Dr. Onoyona underlined that the latest visit and donation of learning materials to the students of Alidinma Mixed Secondary School is the foundation’s way of raising from our community, academically strong and well-informed youths that will provide the future leadership needs of our nation as well as compete favourably with their counterparts abroad’’.
The Nigerian-born and U.S.-based social worker and advocate while calling on other well-meaning and quietly influential Nigerians to team up in her current quest to uplift less privileged and vulnerable youths out of poverty and illiteracy, added that this benevolent outreach which focuses on empowering students through provisions of essential educational materials such as school bags, relevant books, pens, and pencils, among others will continue and be extended to other schools within Delta state and beyond to equip the students with the tools needed to excel academically and inspire a brighter future.
In a related development, Speaking via a statement signed by one of the leading members, Chukwuka Justus Iwegbu and titled; The Spirit of Giving Back to Our Community and Alma Mater: A Tribute to the Unsung Heroes of Ute Okpu Grammar School 1990 Set Old Students Association, the Ute Okpu Old Students Association explained that the event which took place at Ute Okpu Unity Town Hall was a testament to the enduring spirit of the alumni association and its commitment to recognizing the contributions of its esteemed members.
“One thing that brought us together after so many years of leaving our alma mater is unity and love. We may not bother ourselves with the sung and unsung stories because we have a whole lot of members who believe in an unsung story of positive contribution and impact on the lives of others. Remembering our roots remains our major mandate and a call to duty.
“The Ute Okpu Grammar School Alumni Association, 1990 set, is committed to giving back to our alma mater and the Ute Okpu community. We believe that education is the key to unlocking the potential of individuals and communities, and we are dedicated to supporting initiatives that promote educational excellence and intergenerational change,” the statement concluded.
Without a doubt, it will be convenient for many to argue that there is nothing philanthropic to attract media coverage of such a low-profiled donation of learning material, particularly as the value of the donation in question is not measured in billions of Naira.
For me, there are lessons to learn from these groups and every reason to celebrate their actions.
First and very fundamental is the hidden truth that members of these groups are not in absolute terms wealthy, particularly going by Nigerians’ context and definition of riches but were predominantly fired by the burning desire to uplift the life chances of the poor and vulnerable in their environment through educational support.
Regardless of what others may say, this piece holds the opinion that these morally eminent men and women made donations to schools not only as a positive behavioural culture but largely in recognition of the time-honoured aphorism which considers education as the bedrock of development; that with sound educational institutions, a country is as good as made -as the institutions will turn out all rounded manpower to continue with the development of the society driven by well thought out ideas, policies, programmes, and projects.
Their action equally symbolises a bunch in consonance with the fact that it is our collective responsibility to ensure that our schools work and our children are properly educated at the right time.
With their culture of donating to the students’ welfare and comfort, the group, in my view, amplified the notion that children enjoy the right to education as recognized by a number of international conventions, including the International Covenant on Economic, Social and Cultural Rights which recognizes a compulsory primary education for all, an obligation to develop secondary education accessible to all, as well as the progressive introduction of free higher education/obligation to develop equitable access to higher education.
We must also not fail to remember that a few years ago, the National Human Rights Commission (NHRC), in line with its mandate to promote and protect human rights, established the right to education as a thematic area of focus to drive its vision of having all children enrolled in school as well as to ensure that the culture of human rights is promoted and maintained in schools.
One common fact we must not shy away from as a people is that the crushing weight arising from education funding in Nigeria and globally has become too heavy for only the government to shoulder and that is another reason why the intervention/donation by these groups is most profound.
As we celebrate these uncommon efforts, the lesson we must all draw from the example of these groups is that it is time for all to collectively find creative and sustainable solutions to educational provision for all in Nigeria, especially for the children of the poor and lowly as these children deserve the right to hold all of us accountable.
If we fail to provide this traditional but universal responsibility to these children, their future will hang in the balance as a result of such failures. And chances are that most of them will run to the streets. And, as we know, the streets are known for breeding all sorts of criminals and other social misfits who constitute the real threat such as armed robbers, thugs, drug abusers, drunkards, prostitutes and all other social ills that give a bad name to society.
Utomi, a media specialist, writes from Lagos, Nigeria. He can be reached via [email protected]/08032725374
Feature/OPED
Ways to Stick to Your New Year’s Resolutions Without Breaking the Bank
Embarking on a new year often involves setting ambitious resolutions – a global tradition of striving for personal growth and positive change. We vow to eat healthier, exercise more, learn a new skill, or take on challenging DIY projects. However, as the initial enthusiasm wanes, some resolution may only fall by the wayside.
To enhance your chances of success, let’s delve into some common resolutions and explore key tips that will empower you. This includes setting clear and achievable goals and utilising tools that will equip you for the journey towards achieving those aspirations.
1. Enhancing physical wellbeing: Losing weight or improving fitness often requires a lot of different things working together. To support your efforts, consider utilising tools such as smartwatches to track progress, resistance bands for strength training, and cardio equipment like an exercise bike or treadmill. For home workouts, invest in dumbbells, kettlebells, and a yoga mat. A food scale can aid in portion control. You can also stay motivated by wearing nice workout clothes that makes exercise more fun. These products are all available on Temu, a direct-from-factory marketplace offering year-round deals to help you achieve your New Year’s resolutions.
2. Cultivating healthy eating habits: This often involves prioritising whole foods, minimising processed foods, and increasing fruit and vegetable consumption. To simplify this journey, consider investing in helpful kitchen tools. A food processor can streamline meal prep, while an air fryer offers a healthier cooking alternative. A slow cooker is perfect for effortless and flavourful meals, and a vegetable spiraliser can make eating vegetables more enjoyable.
3. Prioritising stress reduction and wellness: Prioritising wellness is crucial for overall well-being. To reduce stress and feel better, focus on mindfulness practices like meditation or yoga and spend time in nature. Improve your sleep habits. Helpful tools include essential oil diffusers to create a calming atmosphere, weighted blankets for relaxation and comfort, stress balls to release tension and improve circulation, and noise-cancelling headphones to block out distractions.
4. Trying out a side hustle to diversify income: Becoming a social media content curator, for example, is a rewarding pursuit in Nigeria, however, it requires careful planning and execution. Defining your niche and identifying reliable sources of content are crucial first steps. A strong technological foundation is essential for success. This includes a reliable computer or mobile device, a stable internet connection, and specialised software for editing (video, audio, and image). Investing in affordable high-quality recording equipment, such as cameras, is crucial for capturing professional-looking content, while good lighting is essential to enhance its visual appeal.
5. Strengthening personal relationships: This is a valuable resolution that can enhance our well-being and strengthen our relationships. In today’s busy world, it’s easy to let the demands of daily life overshadow meaningful connections. To make this resolution a reality, consider scheduling regular family dinners, planning weekend outings, or dedicating specific times for uninterrupted conversations. Remember that quality time is key; put away distractions and truly engage with your loved ones.
6. Contributing to the community through volunteering: Volunteering your time to a cause you believe in is a rewarding way to make a difference in your community and the world. Find a cause that resonates with you and explore opportunities within your local area. Start small and gradually increase your commitment. Remember that volunteering is a two-way street; it not only benefits the organisation but also provides you with a sense of purpose and fulfilment.
Consistency and adaptability are key to achieving your New Year’s resolutions. Celebrate your successes, be patient with yourself, and don’t hesitate to adjust your approach when needed. Platforms like Temu can be invaluable allies, offering a wide range of affordable products to support your goals. From fitness equipment to kitchen essentials, Temu can effectively equip you without straining your budget.
Feature/OPED
Unlocking Full Human Potential: Growth, Diversity, and Purpose
In Nigeria’s diverse workforce, the conversation around diversity and inclusion (DEI) extends beyond gender to address tribal diversity, socioeconomic representation, and other cultural nuances. Policies that promote inclusivity are crucial for fostering collaboration in Nigeria’s multicultural corporate environment.
“An organisation is only as good as its people. Ensuring those people perform to their best is the role of human capital. Today, the field has a range of tools to ensure real-time engagement and agile interventions for optimal job satisfaction and performance”, – Catia Teixeira, MultiChoice Africa Holdings Group Executive Head of Human Capital.
In both our professional and personal lives, we all strive for growth and development. These opportunities are deeply rewarding, supporting the kind of self-actualisation that makes life most fulfilling. In the Nigerian workplace, where career growth often intertwines with societal expectations and the drive for self-improvement, human capital plays an even more significant role. Opportunities to grow are not just fulfilling but are deeply rooted in our collective ambition for a better future.
Employee engagement is a reflection of how actualised individuals feel in their roles. Engaged employees are more likely to perform at their peak and contribute positively to the workplace. In Nigeria, where the “hustle culture” is celebrated, organizations must create environments that not only nurture growth but also recognize and reward the efforts of their people.
When employees feel enriched and their work aligns with their aspirations, the results are transformative. Growth and development are not just personal milestones—they are the foundation of a thriving organization and, by extension, a more productive society.
Identifying Growth Opportunities
In every workplace, some employees stand out from the first day, while others take time to grow into their potential. Talent management processes must cater to both. For instance, a twice-yearly organizational talent review can help Nigerian companies identify where employees excel and where they need support.
Interactions within the workplace also play a crucial role. In Nigeria’s highly networked professional landscape, creating opportunities for cross-departmental collaboration can open new doors for employees. Systematic development plans, supported by tailored training, ensure that these opportunities translate into tangible growth.
Take the MultiChoice Academy, for example, which offers over 4,000 online courses spanning finance, HR, marketing, and other fields. This mirrors the Nigerian appetite for continuous learning, especially as industries rapidly embrace digital transformation. While face-to-face training remains valuable, customized e-learning platforms are pivotal in bridging knowledge gaps and preparing employees for the future of work.
For any training program, balance is key. Organizations must align employee development with business goals while ensuring individuals feel empowered to pursue their aspirations. In Nigeria, induction programs that connect new hires with company visions and purpose are critical to building this alignment.
One of the most rewarding aspects of human capital management is witnessing success stories unfold. In a country like Nigeria, where talent is abundant, but opportunities may be unevenly distributed, developing talent internally can make a significant impact. Long-term employees bring invaluable institutional knowledge, and nurturing their growth ensures they continue to drive organizational success.
At MultiChoice, we are deeply committed to equipping our workforce with the skills and confidence needed to excel. Whether it’s training young leaders, empowering women in leadership, or developing heads of departments, every investment in our people enhances their value – as individuals and as indispensable assets to the company.
What Diversity Means
At MultiChoice, gender equity remains a key focus. Women make up 46% of our workforce, and 46% of leadership roles are held by women—a significant achievement in a society where women often juggle professional aspirations with traditional family roles. Our promotions policy is designed to push these numbers to 50%, ensuring equity across all levels of the organization.
When entering new markets, MultiChoice intentionally applies its culture of inclusion, empowering women to excel in leadership positions. This commitment extends to addressing barriers unique to Nigeria, such as access to resources and mentorship for women in underrepresented fields.
Data Drives Change
To drive meaningful change, data is indispensable. Nigerian companies often face challenges like high employee turnover and workplace inefficiencies. By leveraging data, organizations can address these issues strategically.
MultiChoice uses platforms like Office Vibe to generate insights into employee engagement, satisfaction, and work-life balance. Weekly surveys and random polls provide actionable feedback, enabling quick interventions and fostering a culture of continuous improvement.
In Nigeria, where trust in leadership significantly influences workplace morale, data can also help bridge gaps between management and employees. Regular focus groups, coupled with robust analytics, ensure employees feel heard and supported. When organizations align employee needs with business goals, the result is a workforce driven by purpose and achievement.
The Collective Goal
In Nigeria, where community and collective growth are deeply valued, human capital strategies should emphasize the power of shared purpose. By investing in people, organizations contribute to a larger vision of national development.
At MultiChoice, every success story is a testament to this philosophy. From training young leaders to empowering women in leadership, the organization demonstrates that growth is a journey best undertaken together. For Nigeria, this represents a powerful blueprint for building a future where individuals and organizations thrive in harmony.
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