Feature/OPED
Who is on a Motive to Destroy ABC Orjiako’s Reputation after he Paid $143.3m?
By Hauwa Hazan-Baba
An American business magnate, investor, and philanthropist, Warren Edward Buffett in one of his famous quotes said: “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway”.
Recently, there have been several media publications in relation to loan facilities taken by Shebah E&P Limited to carry out a drilling campaign in OML 108. These cases had been in various courts between London and Nigeria since 2014 until the latest initiated by Zenith Bank in October 2021. All these cases are in relation to the inconclusive drilling campaign in Ukpokiti oil field, offshore the Niger Delta.
The origin of the who brouhaha
Like Buffett said, “What we learn from history is that people don’t learn from history.” The origin of the matter is that in 2012 Shebah E and P obtained a $150million loan facility from a consortium of banks (AFREXIM/Diamond- now Access/Skye- now Polaris) led by AFREXIM.
The facility was meant for a workover and drilling campaign at the Ukpokiti field (OML 108) operated by Shebah E&P.
Incidentally, all these cases have received extensive media attention and each time one individual has been mentioned repeatedly as the debtor in these facilities.
That person is ABC Orjiako, an orthopaedic surgeon, who is also the co-founder and Chairman of Seplat Energy Plc. It is therefore incumbent on any investigative journalist to carry out an independent analysis of these debts and associated court cases to reveal the underlying facts behind all the Stories and whether Dr ABC Orjiako is “Guilty As Charged”.
It is pertinent to state that this current frenzy over the loan matter is not a fresh case but the same case that has been reported variously in the media since 2016.
Never a borrower and never utilized facilities as a person
The most astonishing fact in all this is that Dr Orjiako was never a borrower and never utilised the facilities as a person. He was merely the majority shareholder of Shebah and guarantor of the facilities. Dr Orjiako was not even a member of the management of Shebah but stepped up to salvage the company by making payments to the banks using personal and family assets to liquidate the facilities. The banks disbursed the loan directly to the service providers of the company.
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Shebah drilled a successful horizontal well, the first of its kind in the offshore Niger Delta and tested 4000 barrels per day of oil and condensate production but encountered large gas reserves. The company then decided to find a solution to the huge associated gas based on professional oil field best practices before the continuation of the oil/ condensate production. The company required more funds to commercialize the gas to avoid excessive flaring while producing the discovered oil.
AFREXIM led consortium of lenders
It is worth noting that the AFREXIM led consortium of lenders, could not provide further facilities to Shebah to conclude the operations. In 2014, Shebah then approached Zenith Bank, which appraised the situation and provided a $250 million loan facility fully approved by its board to salvage the situation. Zenith proposed to pay the consortium of banks $50million to reduce their collective exposure, enhance the facility to $350million, provide Shebah with additional funds to monetize the gas and produce the discovered oil. The enhanced facility would have had Zenith join and lead the syndicate with $250 million, while the consortium of existing lenders would have reduced their exposure and stay at $100 million (about $33 million each).
Zenith requested to have a moratorium period of 9 months
Zenith further requested (in line with Shebah’s need) to have a moratorium period of 9 months to conclude the projects and extend the facility tenure to 5 years. This was meant to spread the cash flow and enable easy repayment of the enhanced facility.
Surprisingly, the AFREXIM consortium rejected the $50 million offered by Zenith on the grounds that Zenith should not lead the syndicate and they were not willing to extend the tenure of the facility which was remaining about two and half years as at the time of Zenith’s offer.
Preparatory to monetizing the discovered gas, Shebah negotiated and executed a GSPA of $2.5billion for 20 years gas sale on a take or pay basis with the Nigerian Gas Company(NGC) as the gas offtaker supported by a payment bank guarantee in the sum of $70million from Zenith bank.
The AFREXIM consortium rejected all the efforts being made by Shebah and proceeded to file an action to call the facility in 2014 (just two years after final draw down). The call of the facility ahead of the maturity triggered the default on the loan.
The Justice Phillips of the London High Court judgment
On 19 February 2016, Mr Justice Phillips of the London High Court delivered a judgment in favour of the AFREXIM consortium for the repayment of the $150M loan facility. The judgment creditors then registered the judgment in Federal High Court in Lagos and applied for enforcement of the judgment.
The defendants immediately opposed the registration and the enforcement of the judgment based on their convictions on rule of law and on the fact that they would like to negotiate an out of court settlement and pay back the loan under a restructured arrangement. This case is still life before a Justice of the Federal High Court Lagos. The court is awaiting the outcome on the settlement which will be entered as a consent judgement.
Contrary to the Syndication agreement by the AFREXIM consortium, Polaris Bank transferred its share of the judgement facility to AMCON.
Notwithstanding the unilateral action by Polaris bank, AMCON initiated a fresh action in Federal High Court Abuja, not minding that the same case had already got a ruling in London and was subject to a contested enforcement proceeding in the Federal High Court Lagos. It was by the case that AMCON filed that an Ex-Parte order was granted in 2019 which was widely reported in the press.
See what Orjiako has paid
Buffett’s saying goes that, “If past history was all that is needed to play the game of money, the richest people would be librarians”. Orjiako has paid the following sums to the lenders: $89.3 million (out of a total principal of $150 million) including $20 million paid this year to the consortium of AMCON/AFREXIM/ACCESS toward the repayment efforts. This means that if his proposal is accepted by these creditors, the outstanding Principal amount would be $60.7 million. He had made a proposal to these creditors to accommodate Zenith bank in the distribution of the repayment, but they have not accepted this proposal, which would have prevented the Zenith bank action of October 2021.
In the case of Zenith Bank, ABC Orjiako has also paid back $54 million (including proceeds of forced sale of his family Seplat shares by Zenith bank) out of the principal of $70m and is currently engaging the bank to negotiate an out of court settlement. This means that Dr Orjiako has paid a total sum of $143.3 million ($89.3 million plus $54 million).
Why the misrepresentations of facts
Most stories read recently on this issue are unfortunately been used to misrepresent facts as they have portrayed an innocent person in a very bad light with enormous reputational damage.
It is important to note that these kinds of misrepresentations are misinforming the global investing community with their negative consequences for Nigeria. It would be recalled that Dr Orjiako has continued to lead Seplat Energy to its exponential growth attaining the enviable position as an indigenous Nigerian Independent Energy company listed in the London and the Nigerian Stock Exchanges, among many other feats.
Payments clearly show high moral duty and integrity
These payments are a clear show of high moral duty and integrity to repay a loan Dr Orjiako did not utilise and for oil assets that are not generating any revenues. From the deluge of negative media reports, most of which misrepresent the matter, there is a strong impression that these are smear campaigns.
It was also revealed that SEPLAT where Dr ABC Orjiako is the Chairman is not involved in any of these matters whatsoever contrary to the nuances in the media report. The SEPLAT board of directors being very strong in corporate governance had activated all governance and compliance processes and procedures to ensure that there are no breaches of any aspect of regulatory compliance or its governance policies.
Out of court settlement in the offering
There is information also that the parties may be considering out of court settlement of the commercial dispute. A positive outcome of such a settlement will bring the entire impasse to a final close.
In a completely different case, Access Bank versus Cardinal Drilling, ABC Orjiako, unfortunately, had the misfortune of being blamed for the Cardinal facility because he is seen as the alter ego of the company.
Dr Orjiako’s involvement was just as an investor in Cardinal where his company Shebah invested alongside Platform Petroleum and Maurel et Prom, all of who are founding shareholders of Seplat. Neither Orjiako nor other shareholders ever received dividends from Cardinal. All the equity investments were lost but again, curiously, only Orjiako was singled out for the smear campaign.
Hauwa Hazan-Baba (BSc Econ, MSc Management) is an Economist and Public Affairs Analyst based in the United States
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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