Business

Debt: Court Orders CBN To Deduct N40bn Ebonyi Allocation

Published

1 year ago

November 21, 2022

Editor

The Port Harcourt Division of the Federal High Court, has ordered the Central Bank of Nigeria to commence deduction of over N40billion from the Federation Allocation Account, for Ebonyi State Government and remittance of same to a consulting firm.

In its order absolute, the court equally ruled that the Ebonyi State Government should pay the firm, Andrew Bishopton Nig Ltd and its partners, Mauritz Walton Nig Ltd, the sum of N118,787,380.00 and other sums for failing to keep to the terms of the contract agreement, it entered with the latter.

The court also ordered the CBN to withdraw the sum of US29,854,856.9 and another N30,100,000,000.00 from the state’s accounts and remit same to the company.

The Ebonyi State Government contracted the company in 2o16 to pursue and recover monies illegally deducted on both its foreign and local loans and facilities especially the Paris club refund.

The firm, it was gathered, approached the court following the state government’s alleged reluctance to keep to the agreed contract terms, a development that led to the illegal arrest and detention of a senior staff of the consultancy organisation, Mrs Jackie Ikeotuonye, by the former.

The court, presided over by Justice Dalyop Pam, in its order absolute, ruled that one of the applicants or judgment creditors, Andrew Bishopton Nig Ltd, were treated unfairly by the government.

A copy of the ruling, dated November 2, 2022, which was obtained by our correspondent, on Monday, read, “Upon this garnishee proceedings dated and filed on the 18th of July, 2022, and coming up for Ruling today, the 2nd day of November, 2022.

“Whereas all the parties are absent.

“M.N. Mohammed, SAN with K. Nkwocha, Esq. and R. Asher, Esq. of Counsel for the Judgment Creditors.

“P.N. Zephaniah, Esq. of Counsel for the 1st Garnishee Respondent.

“And the Honourable Court having delivered its Ruling in the open court today, the 2nd day of November, 2022.

“It is hereby ordered as follows:

“An Order Absolute of this Honourable Court is hereby made DIRECTING the 2nd Garnishee (United Bank for Africa Plc) to, within 24 hours, pay the sum of One Hundred and Eighteen Million, Seven and Eighty-Seven Thousand, Three Hundred and Eighty Naira) (N118,787,380.00) Only, attached from the account maintained by the Judgment Debtor, Government of Ebonyi State known as Ebonyi State Government Treasury Single Account with Account No: 1001158077 maintained with the 2nd Garnishee Bank, United Bank for Africa Plc into the designated Account Name: Mauritz Walton Nig Limited, Bank Name: Wema Bank Plc, Account No: 0122765584, to liquidate the judgment in this suit.

“An Order Absolute of this Honourable Court is hereby made DIRECTING the 1st Garnishee Bank (the Central Bank of Nigeria) to deduct at source, the sum of US29,854,856.9 (Twenty Nine Million, Eight Hundred and Fifty Four Thousand, Eight Hundred and Fifty-Six Dollars, Nine Cents) Only and the sum of N30,100,000,000.00 (Thirty Billion, One Hundred Million Naira) Only , respectively from the monthly Federation Allocation Account of the Judgment Debtor, Ebonyi State Government and credit same into the designated Account of the 2nd Judgment Creditor, Mauritz Walton Nig Limited, Bank Name: Wema Bank, Bank Account: 0122765584, to liquidate the judgment sum in this suit.

“Issued at Port Harcourt, under the seal of the Court and the Hand of the Presiding Judge, this 2nd day of November, 2022.”

Business

Stock Market Review: FBN Holdings Leads 41 Others As Investors Gain N811bn

Published

14 hours ago

May 4, 2024

Editor

FBN Holdings Plc has topped 41 other advanced equities to pull the Nigerian Exchange Ltd.(NGX) market indices up by 1.46 per cent, week-on-week, making investors gain N811 billion.

The market, having opened for four days in the week, following the May Day holiday, had FBN Holdings leading the gainers’ table by 32.68 per cent to close at N27 per share.

Sterling Financial Holdings followed by 27.75 per cent to close at N4.88, while UACN gained 24.60 per cent to close at N15.45 per share.

Julius Berger added 23.76 to close at N72.40, while Flour Mills rose by 20.66 per cent to close at N36.80 per share.

Conversely, Nascon Allied Industries Plc led the losers’ table by 17.03 per cent to close at N43.60, University Press trailed by 16.67 per cent to close N2.05 per share.

Neimeth International Pharmaceuticals shed 14.14 per cent to close at N1.70, Berger Paints Plc declined by 9.87 per cent to close at N13.70 and Vitafoam Nigeria lost 9.81 per cent to close at N17 per share.

Meanwhile, 42 equities appreciated in price during the week, higher than 27 equities in the previous week.

Thirty-six equities depreciated in price, lower than 43 in the previous week, while 76 equities remained unchanged, lower than 84 recorded in the previous week.

Consequently, the All-Share Index and Market Capitalisation appreciated by 1.46 per cent to close the week at 99,587.25 and N56.323 trillion, respectively, in contrast to 98,152.91 and N55.512 trillion posted last week.

Similarly, all other indices finished higher with the exception of NGX Consumer Goods, NGX Oil and Gas and NGX Industrial Goods which depreciated by 0.26, 0.68 and 0.36 per cent, respectively, while NGX ASeM and NGX Sovereign Bond indices closed flat.

Meanwhile, a total turnover of 1.941 billion shares worth N32.644 billion in 35,807 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.839 billion shares, valued at N34.258 billion, that exchanged hands last week in 37,528 deals.

The financial services industry measured by volume led the activity chart with 1.496 billion shares valued at N22.453 billion traded in 19,225 deals, thus contributing 77.08 and 68.78 per cent to the total equity turnover volume and value, respectively.

The consumer goods industry followed with 144.722 million shares worth N5.063 billion in 4,966 deals.

In the third place was the conglomerates industry, with a turnover of 109.978 million shares worth N1.539 billion in 2,064 deals.

Trading in the top three equities, namely Abbey Mortgage Bank Plc, Guaranty Trust Holdings Company Plc and Access Holdings Plc, measured by volume, accounted for 898.940 million shares worth N14.314 billion in 5,518 deals.

These contributed 46.31 and 43.85 per cent to the total equity turnover volume and value, respectively.

(NAN)

Business

BREAKIN: NDIC Increases Maximum Deposit Insurance Coverage

Published

3 days ago

May 2, 2024

Editor

The Nigeria Deposit Insurance Corporation (NDIC) on Thursday increased the maximum deposit insurance coverage levels for Deposit Money Banks from N500,000 to N5 million.

The Managing Director of NDIC, Bello Hassan, announced this in Abuja at a press conference, stating that it takes effect immediately.

He said, “For Deposit Money Banks, the increase of the maximum deposit insurance coverage from N500,000 to N5,000,000, would provide full coverage of 98.98% of the total depositors compared with the current cover of 89.20%.

“In terms of the value of deposit covered, the revised coverage would increase the value of deposits covered by deposit insurance to 25.37% compared with the current cover of 6.31% of total value of deposits.

“The increase of the maximum deposit insurance coverage from N200,000 to N2,000,000, would provide full coverage of 99.27% of the total depositors compared with the current level of 98.76% and would increase the value of deposits covered by deposit insurance to 34.43% compared with 14.38% of total value of deposit, currently covered.

“The increase of the maximum deposit insurance coverage from N500,000 to N2,000,000 would provide full coverage of 99.34% of the total depositors compared with the current 97.98% and would increase the value of deposits covered by deposit insurance to 21.04% compared with 10.77% of total value of deposit, currently covered.”

Hassan also stated that raising the maximum deposit insurance coverage for primary mortgage banks from N500,000 to N2,000,000 would provide full coverage for 99.99% of total depositors and increase the value of deposits covered by deposit insurance to 43.10% of the total deposit value, up from the current 40.60% cover.

The Corporation has also raised the maximum pass-through deposit insurance coverage for subscribers of Mobile Money Operators from N500,000 to N5,000,000 per subscriber.

Business

Dangote Speaks On Devaluation Of Naira

Published

4 days ago

May 1, 2024

Editor

Chairman of Dangote Industries Limited, Aliko Dangote has said that the devaluation of Naira created the biggest mess for the company in 2023.

Speaking at the annual general meeting of Dangote Sugar Refinery, Dangote said this affected lots of companies in the country.

He said: “We are doing whatever it takes to make sure that at the end of the day, we will be paying dividends because if you look at our dividends last year, it was almost 50 percent more so we will try and get out of the mess.

“The biggest mess created was actually the devaluation of the naira from N460 to N1,400. You can see almost 97 percent of the companies, especially in food and beverages businesses, none of them will pay dividends this year for sure but, we will try and get out of it as soon as possible.

“We want to see that at the end of the day, no matter how small, we will be able to pay some dividends, especially if there is a rebound of the naira.”