Category: Law

  • Firm asks court to freeze SAP accounts in CBN, 21 banks

    Firm asks court to freeze SAP accounts in CBN, 21 banks

    By Robert Egbe

    B4G Consulting Ltd has asked a Lagos State High Court to restrain Systems Applications Products (SAP) from dissipating $3,371,945.27 and N5mllion with 28 Respondents including the Central Bank of Nigeria and 21 other banks, pending determination of an alleged contract breach suit.

    It is also seeking a Mareva injunction restraining the 1st-28th Respondents from releasing to SAP $3,371,945.27 and N5mllion held with the 1st – 28th Respondents.

    It is further seeking to restrain the 1st-28th Respondents from releasing to SAP any funds or other instruments belonging to SAP and held with the 1st – 28th Respondents up to the value of $3,371,945.27 and N5mllion.

    It is also praying for an order directing the 1st-28th Respondents to file and serve affidavits before the court within seven days of the grant of the three prayers above, disclosing all funds belonging and/or due and payable to the Defendants/Respondents and held with them, as at the date of service of this motion on each of the Respondents.

    The suit, which was formerly before Justice Olukayode Ogunjobi, has now been reassigned to Justice Ezekiel Ashade and proceedings are to resume on March 26, 2021.

    B4G Consulting Ltd & Anor, represented by its counsel David Ogebe, are the Claimants/Applicants in the suit marked LD/ADR/519/2016, while Systems Applications Products Nig. Ltd and Systems Applications Products (Africa Region) (Proprietary) Ltd are the Defendants/Respondents and are represented by Adedapo Tunde-Olowu SAN.

    28 others are nominal respondents are National Petroleum Investment Management Services, Nigeria National Petroleum Corporation (NNPC), Nigerian Petroleum Development Company Ltd, Department Of Petroleum Resources (DPR), CBN, Debt Management Office (DMO).

    The banks are: Access Bank, Ecobank, Citibank, Fidelity Bank Plc, First Bank, First City Monument Bank, Globus Bank, Guaranty Trust Bank, Heritage Bank, Keystone Bank, Polaris Bank, Providus Bank, StanbicIBTC Bank, Standard Chartered Bank, Sterling Bank, Sun Trust Bank, Titan Trust Bank, Union Bank, United Bank For Africa, Unity Bank, Wema Bank Plc and Zenith Bank.

    Apart from the Mareva Injunction, the claimant is also seeking other reliefs in the main suit. These include:

    “An order directing the Defendants to pay to the Claimants the sum of $83,169.78 being outstanding and unpaid sums, $117. 60 in respect of hoteling for 8 Consultants from January – September 2010 and $267, 792 being pay for services of consultants between July to September 2010

    “An order directing the Defendants to provide full details and render accounts including all reviews and payments received from the NNPC in relation to the ERP System contract between SAP and NNPC

    “An order directing the Defendants to pay the full 10 per centum face value of the ERP System contract as valued at its date of completion. less previous payments to the Claimants.

    B4G Consulting averred in its July 27, 2020, amended statement of claim that sometime in 2009 the defendants engaged it to help broker, procure negotiate, secure and implement an ERP System contract (the SAP ERP contract with the NNPC.

    The consideration provided in respect of the engagement was the supply or provision of services to a minimum of 10 per cent of the face value of any secured contract.

    Pursuant to the claimants’ engagement, a contract with an initial value of $36.75m (subsequently revalued to $42m) was negotiated and secured between the NNPC and SAP.

    The claimant commenced the supply or provision of services in line with the terms of its engagement by SAP, but before it could provide the minimum 10 per cent of the ERP contract, the Claimant’s provision of services was halted – by SAP vide letter dated 12 July 2010.

    It averred that SAP without any investigation and without hearing from the Claimants issued a letter of 12 July 2010 unilaterally imposing fresh contractual terms on the parties including demanding exclusion of the physical presence of the 2nd Claimant from the project.

    Despite the Claimant’s letters in response of 20 July and 12 August 2010 respectively, SAP ignored these letters.

    “The Defendants did not issue payment advice to the Claimants but only made sporadic lump-sum payments to the Claimants account on 21 and 26 July, and 16 August 2010.

    But opposing the claimant’s prayer in its February 22, 2021, amended statement of defence, the defendants described the claimant’s case as frivolous, an abuse of court processes that should be struck out with substantial costs against the claimants.

    They averred that the claimant was “not entitled to the $83,698.78, $117,66, $3,371.945.27 claimed in this action or any other judgments. The Defendant states that it has no contractual obligation to make any disclosures to the Claimant with respect to the said contract as alleged.”

    It added further: “The Defendant also states that they never agreed that the condition to be provided in part of the ERP contract with NNPC ‘is a minimum 10 per cent of the face value of any contract’ as alleged by the Claimants.”

     

  • To shoot on sight or not?

    To shoot on sight or not?

    Is the President’s shoot-on-sight directive against bandits bearing dangerous firearms valid without an executive order? What happens when the order contravenes existing security agencies’ rules of engagement? Can the police, military or paramilitary shoot to kill an armed person when their lives are not threatened? ROBERT EGBE analyses the issues.

    President Muhammadu Buhari could not have given a sterner notice of his intention to stamp out banditry, kidnapping, farmer-herder clashes and other acts of terror than he did last Wednesday.

    In an interview with The BBC, his spokesman Garba Shehu said security agencies had been directed to shoot on sight anyone seen with an AK-47 or other deadly weapons if the person fails to disarm.

    “The President has ordered security forces to go into the bushes and shoot whoever they see with sophisticated weapons like AK-47. He ordered that whoever is seen with terrible weapons at all should be shot immediately.”

    According to him, it showed the seriousness with which the government was taking the problem.

    “What can be stronger than the fact that the President has directed the operatives to shoot anyone seen with dangerous weapons like AK-47, on sight, in as much as the person is not a security operative?

    “Government is doing this with all seriousness. The President equally directed that the security (operatives) should go after them and kill them except they lay down their arms,” Shehu said.

    The directive was welcomed by many Nigerians, including politicians across political divides.

    Prohibited weapons

    The President’s order covered AK-47 and other dangerous weapons. Such weapons are also regulated by and listed under the Firearms Act as prohibited firearms and cannot be owned by civilians without a licence. They include: Artillery; Apparatus for the discharge of any explosive or gas diffusing projectile; Rocket weapons; Bombs and grenades; Machine-guns and machine-pistols; Military rifles, namely those of calibres 7.62 mm, 9 mm, .300 inches and .303 inches, Revolvers and Pistols whether rifled or unrifled (including flint-lock pistols and cap pistols) and any other firearm not specified in the Act.

    Others are personal firearms such as shotguns other than – (a) automatic and semi-automatic shotguns; and (b) shotguns provided with any kind of mechanical reloading device; Sporting rifles, namely rifles of calibres; Air-guns, air-rifles or air-pistols and Humane killers of the captive bolt type.

    What President may have meant

    But, according to lawyers, the President’s directive may, besides being possibly illegal, also lead to unintended consequences.

    Senior Advocate of Nigeria (SAN) Seyi Sowemimo reasoned that the implications of the directive were so weighty that he could not have expected security operatives to implement it in toto.

    Sowemimo said: “I think the President should not be speaking literarily. I don’t expect the President to say they should just be shot on sight.

    “What he is suggesting is that the practice of carrying weapons without a licence is totally unacceptable and that sanctions will be strictly meted out against those found with arms.”

    He said he believed that the president was trying to tell bandits, kidnappers and other criminal elements that if they use weapons without a licence, they would be arrested and prosecuted.

    Sowemimo’s concern is similar to that held by other lawyers who, though conceding that the president had good intentions with the order, noted that he might be paving the road to constitutional hell.

    Is shoot-to-kill order lawful without Executive Order’s backing?

    Chino Obiagwu, SAN, said for the order to be lawful, it had to have been issued in the form of an Executive Order, otherwise, it would clash with, for instance, police regulations on how to disarm suspected criminals.

    Obiagwu, national coordinator of Legal Defence Assistance Project (LEDAP), wondered whether the order even emanated from the President.

    He reasoned that, to dispel doubt, such a weighty directive ought to have been given by the President personally.

    According to him, the order “did not come directly from the President and there was no evidence that it was the President that gave the directive. His assistant cannot issue such an important directive without the President clarifying it. It was not issued from the Presidency. Garba Shehu is not the spokesperson for the Presidency. We have a Chief of Staff and a Secretary to the Federal Government.”

    Nevertheless, there has not been any contrary directive from the President since the order was announced.

    He said: “For such an order to emanate from the Presidency, there should be an Executive Order that would dispel the Police Regulation. Remember the Police Regulation has a procedure for disarming an armed person.

    “If the President wanted to waive the provision of the Police Regulation which was made under Police Act, but which he can suspend, he has to issue an Executive Order, saying for the issue of security, this is the position.”

    Executive Order

    The Black’s Law Dictionary (Seventh Edition) defines an Executive Order as “an order issued by or on behalf of the President, usually intended to direct or instruct the actions of executive agencies or government officials, or to set policies for the executive branch to follow.”

    Executive orders stem from the President, or a governor’s executive powers provided for in Section 5 of the 1999 Constitution as amended in 2011.

    Section 5(1) reads: “Subject to the provisions of this Constitution, the executive powers of the Federation:

    1. “shall be vested in the President and may, subject as aforesaid and to the provisions of any law made by the National Assembly, be exercised by him either directly or through the Vice-President and Ministers of the Government of the Federation or officers in the public service of the Federation; and
    2. “shall extend to the execution and maintenance of this Constitution, all laws made by the National Assembly and to all matters with respect to which the National Assembly has, for the time being, power to make laws.”

    Before President Buhari came to power, no civilian president issued an Executive Order. The closest the country came to Executive Orders were the so-called ‘General Circulars’ issued by the Secretary to Government of Nigeria to guide the public service of the Federation.

    Can police kill unauthorised AK-47 holder on sight? 

    Police regulations on deadly force are as contained in the Police Force Order 237, among other laws and regulations. Inspector-General of Police (IGP) Mohammed Adamu, last December 8, during his one-day work visit to Ebonyi State Police Command, Abakiliki, cautioned his officers and men against deadly use of force.

    He advised the police to apply “Force Order 237” only when their lives were endangered, warning that they were not trained to kill but to maim.

    This suggests that shooting an unlawfully armed person on sight might be problematic if the police’s life is not threatened.

    Adamu said: “As police officers, you are not allowed to kill, you are only to maim that person and you are to target the person’s knee, not the chest.

    “So when it comes to a situation where you need to use maximum force, especially in the use of firearms, don’t forget to apply the rule as it covers ‘Force Order 237’ which is when your life is endangered.

    “Again, there is another way of using the firearms as contained constitutionally in section 33 of the constitution as amended.”

    Police regulations on firearms use

    Section 33 that the IGP referred to permits deprivation of life for the defence of any person from unlawful violence or for the defence of property; to effect a lawful arrest or to prevent the escape of a person lawfully detained; or for the purpose of suppressing a riot, insurrection or mutiny.

    Force Order 237 stipulates Police rules of guidance in the use of firearms

    It provides that a Police officer may use firearms under the following circumstances:

    (a) “When attacked and his life is in danger and there is no other way of saving his life;

    (b) “When defending a person who is attacked and he believes on reasonable grounds that he cannot otherwise protect that person attacked from death;

    (c) “When necessary to disperse rioters or to prevent them from committing serious offences against life and property;

    (d) “If he cannot by any other means arrest a person who being in lawful custody escapes and takes to flight in order to avoid re-arrest, provided the offence with which he is charged or has been convicted of is a felony or misdemeanour.

    (e) “If he cannot by any other means arrest a person who takes to flight in order to avoid arrest, provided the offence is such that the accused may be punished with death or imprisonment for seven years or more.”

    Military’s Rules of Engagement (RoE)

    Section 217 (2) (c) of the 1999 Constitution and Section (8) (1) and (3) of the Armed Forces Act 2004 provide the code of conduct and rules of engagement for the armed forces in internal security.

    Section 217 (2) (c) of the 1999 Constitution (as amended) provides that Nigeria’s armed forces shall suppress insurrection and act in aid of civil authority to restore order when called upon to do so by the President.

    This is reinforced by Section (8) (1) and (3) of the Armed Forces Act, which emphasises that this presupposes that troops have to use necessary force to quell crisis resulting in deaths, injury and damages to properties.

    Other highlights of the RoE include: 

    “The principle of minimum force and proportionality must be applied at all times; whenever the operational situation permits, every reasonable effort shall be made to control the situation through measures short of using force, including personal contact and negotiations;

    “The use of lethal force shall only be resorted to if all other means to control the situation have failed or in case of unexpected attack or suspected Improvised Explosive Device (IED) attack during which a delay could lead to loss of life or serious injury to personnel, and that any force applied must be limited in its intensity and duration; it must also be commensurate with the level of threat posed.

    “Force shall be used only when absolutely necessary to achieve an immediate aim; the decision to open fire shall be made only on orders and under the control of the on-scene commander unless there is insufficient time to obtain such order. Fire can however be opened if the life of a soldier, any law-abiding member of the public and/or property of which it is the military’s duty to protect is in grave danger; fire must be aimed and controlled. Indiscriminate firing is not permitted.

    “Fire may be opened to forcefully stop any vehicle that fails to stop at a checkpoint or roadblock when ordered to stop for search; automatic fire will only be opened as a last resort; avoid collateral damage; after fire has ceased, render medical assistance and record details of incident both in writing and using audio/visual equipment whether or not casualty has been recorded; and whenever in doubt, seek clarification from higher headquarters.”

    Presidential order vs military, paramilitary RoE

    Obiagwu’s reference to Police regulations raised the question of whether there is a clash between the President’s directive and existing military, paramilitary rules of engagement.

    He argued that an executive order would have made such a clash unnecessary.

    This may, among others, be because Section 33 of the Firearms Act empowers the President to, after consultation with the National Council of Ministers, make regulations covering a wide range of issues relating to firearms.

    Is unlawful possession of AK-47 punishable by death?

    Obiagwu agreed that under the law if a non-security operative is found with firearms, there is a presumption that the person is a suspected criminal, “because even if he has a licence for arms, once you are asked to surrender it, you must comply and show your licence.”

    Nevertheless, he argued that if the person refuses to surrender the arms, the law does not automatically authorise security agents to kill that person.

    This is because the punishment for unlawful weapons possession is as stated in the Firearms Act.

    Section 3 of the Act states: “Any person found in any public place in possession of any firearms whether real or imitation and in circumstances reasonably indicating that the possession of the firearms is with intent to the immediate or eventual commission by that person or any other person of any offence under section 1 of this Act or the foregoing provisions of this section shall upon conviction under this Act be sentenced to imprisonment for not less than 14 years but not more than 20 years.

    3(1) provides further punishment for illegal possession of firearms It states: “Any person having a firearm in his possession or under his control in contravention of the Firearms Act or any order made thereunder shall be guilty of an offence under this Act and shall upon conviction under this Act be sentenced to a fine of N20,000 or imprisonment for not less than ten years, or to both.”

    Obiagwu said: “So, if you are asked to surrender your licence and you refuse, then you pose a danger and any security operative can shoot you, not to kill you, but to disarm you. So there would have been nothing wrong with that directive if it was ‘shoot to disarm’, rather than ‘shoot to kill’ and that is covered by the Police Regulations.

    “Even the Administration of Criminal Justice Act says no restraint upon arrest. So, once you want to arrest someone there must be no restraint, no use of force. However, if the person resists, then you can use force. The force used must be proportionate to the threat. That means if the person is with an AK-47 and points it at the security officer, of course, the officer can shoot the person to kill because the threat is proportionate and the response must be proportionate to the threat posed. But if the response is not proportionate, for instance, if the person with the AK-47 flees and you shoot to kill, then the response is disproportionate.”

    Lagos lawyer, Jiti Ogunye, also shared a similar sentiment in a post on his Facebook wall last Wednesday.

    Ogunye said: “Shoot AK-47 gun carriers on sight? No. Illegal possession of firearms does not attract a death penalty under our criminal law.

    “Arrest AK-47 gun carriers and seize their weapons, and apply force, including lethal force, if they resist arrest or pose threat to lives of law enforcement agents?” A big yes.”

    SERAP

    Similarly, the Socio-Economic Rights and Accountability Project (SERAP) faulted the order and urged President Buhari to rescind it.

    According to SERAP, the most effective way to address the killings, abductions and violence is to ensure full compliance with the Constitution and human rights law.

    “If the authorities are truly committed to ending the killings and abductions, they should take meaningful measures to protect Nigerians; immediately identify, arrest, probe and prosecute suspected perpetrators; and provide victims access to justice and effective remedies.

    “The shoot-on-sight policy is a threat to human rights-based law-enforcement approaches; may be abused and (may) exacerbate the impunity by law enforcement officials. Non-violent means should as far as possible be applied before resorting to the use of force and firearms.”

  • Court stops production of Village Headmaster

    Court stops production of Village Headmaster

    By Joseph Jibueze

    The Federal High Court in Lagos has restrained Wale Adenuga Production Limited and its Chief Executive Officer Chief Wale Adenuga from producing or publishing a television series, the Village Headmaster.

    Justice Mohammed Liman ruled that the Anton Piller-type order would subsist pending the hearing of an interlocutory injunction.

    An Anton Piller order is made ex-parte (without notice) and requires a defendant or respondent to allow certain persons to enter his premises to search for documents and movable articles as are specified in the court order and to permit such documents or articles to be taken away.

    The plaintiff, Olujimi Olusola, sued as the executor and beneficiary of the estate of Ambassador Olusegun Olusola.

    The plaintiff is claiming proprietary rights to the series.

    Wale Adenuga Production, Chief Adenuga and the Nigeria Television Authority are the defendants in the suit numbered FHC/L/CS/117/2021.

    After hearing the plaintiff’s counsel Prof Bankole Sodipo and Segun Suleiman, Justice Liman directed the defendants to, within 24-hours of being served with the order, deliver to the custody of the court or the plaintiff’s counsel all documents and invoices relating to production, distribution, importation or broadcasting to the public the Village Headmaster without the permission of the plaintiff.

    The court also ordered the defendants to disclose to the bailiff of the court who shall serve the order upon them the names addresses of all persons, companies responsible for supplying any merchandise product of the characters in the Village Headmaster.

    The court also directed the defendants to disclose the date and quantities of such supply as well as the names and addresses of all the persons, firm and companies who are parties or associated with the defendants concerning the Village Headmaster series.

     

    The court granted an order permitting the plaintiff or his counsel, court bailiff and police officers accompanying them to break open the defendants’ premises where anything relating to the Village Headmaster is being kept.

    Justice Liman further restrained the defendants from merchandising the Village Headmaster or the characters therein in any format whatsoever without the plaintiff’s permission pending the determination of the motion on notice for interlocutory injunction.

    Justice Liman granted the defendants the liberty to apply to the court to vary or discharge the orders upon giving 48-hour notice to the plaintiff’s counsel.

    He adjourned until March 11 for the hearing of the interlocutory injunction.

     

     

  • Companies battle over disputed debt

    Companies battle over disputed debt

    By Robert Egbe

    Justice Lateefat Folami of an Ikeja High Court will on April 15 commence hearing of a debt dispute between Tata Africa Services Ltd and Jasper Biochemicals and Allied Products Ltd.

    In the suit, the claimant Tata Africa is seeking N39,088,877 from Jasper Biochemicals being the money allegedly owed it for the purchase of Industrial and food chemicals,

    But Jasper Biochemicals counter-claimed for N60,371,110 for alleged breach contract of sale of expired, inferior and substandard chemicals, N20million for breach of contract and N23,286,048 as outstanding rent of its warehouse and cost of repairing the warehouse.

    In its statement of claim, Tata Africa averred that by a local purchase order of September 3, 2018, the defendant Jasper Biochemicals purchased industrial and food chemicals from it worth N44,352,357.59, but only paid marginal part of the sum leaving an outstanding balance of N39,088,877.

    It said it demanded payment of the debt but the defendant failed to pay up.

    But in its counter-claim, Jasper Biochemicals denied the claims and sought four reliefs in return.

    They are: a declaration that Tata Africa is in breach of sale of chemical products of merchantable quality in the sum of N60,371,110 being the cost of chemical purchased in cash from the company which are expired, inferior and substandard;

    The sum of 17,286,000 being the cost to repair Jasper Biochemicals warehouse which damage was caused as a result of expired chemicals stored in the warehouse;

    N6,000,048 being the outstanding unpaid rent of the warehouse; Damages in the sum of N20million for breach of contract arising from the loss incurred as a result of sale of unfit and unsellable bad stock of food and industrial chemical Products which were returned by costumers as unsold.

     

  • Who does the law ascribe possession to where two parties claim to be in possession of land?

    Who does the law ascribe possession to where two parties claim to be in possession of land?

    ADISA OGUNTADE & ANOR v. MR. MOSES OLAKUNLE OGUN

    CITATION: (2021) LPELR-52895(CA)

    In the Court of Appeal

    In the Ibadan Judicial Division

    Holden at Ibadan

     

    ON FRIDAY, 22ND JANUARY, 2021

    Suit No: CA/IB/173/2011

     

    Before Their Lordships:

    JIMI OLUKAYODE BADA

    Justice, Court of Appeal

     

    HARUNA SIMON TSAMMANI

    Justice, Court of Appeal

     

    FOLASADE AYODEJI OJO

    Justice, Court of Appeal

     

    Between

    1. ADISA OGUNTADE 2. ALHAJI AKEEM AWOJOBI – Appellant(s)

    And

    1. MOSES OLAKUNLE OGUN (Substituted pursuant to the Order of the Honourable Court on the5th day of February 2019) – Respondent(s)

    LEADING JUDGMENT DELIVERED BY FOLASADE AYODEJI OJO, J.C.A.

    FACTS

    This appeal is against the judgment of the Ogun State High Court (trial Court) delivered on 20th December, 2010.

    The Respondent’s case is that sometimes in 1993 he bought the disputed land from Chief Adetunji Fadayiro, Solicitor and Senior Advocate of Nigeria under Yoruba Native Law and Custom. He was put in physical possession and have been in lawful and peaceful possession of the land since then until sometime in November, 2003 when the Appellants and their thugs came to disturb him. The Respondent put a tenant on the land who farmed on it and that when the Appellants came to disturb his peaceful possession, he provided them with information of how he came to the land. He showed them the receipts issued to him by his vendor and the certificate of occupancy granted him, but the Appellants did not desist from further disturbing his enjoyment of the land. Against this background, the Respondent instituted the action before the trial Court.

    The case of the Appellants who counterclaimed is that the disputed land is part of a vast area of land founded by their ancestors, Ige and Owolabi. They narrated the genealogy and averred that they inherited the vast area of land including that in dispute from their ancestors. They claimed to have tenants who paid annual customary tribute otherwise known as Ishakole to their family on the vast area of land. It is further the case of the Appellants that their family did not sell any land to the Respondent’s vendor and that the documents presented by the Respondent as proof of ownership are forged.

    The trial Court upheld the claim of the Respondent. Dissatisfied, the Appellants appealed.

    ISSUES FOR DETERMINATION

    The Court determined the appeal on the following issues:

    1. Whether or not there are sufficient evidence before the Court to establish the finding of trespass against the Appellants in respect of the land in dispute.
    2. Whether or not special damages has been proved by the Respondent as required by law to warrant the award of the sum of N1,100,000:00 (One Million, One Hundred Thousand Naira) against the Appellants.

    APPELLANTS’ SUBMISSION

    The Appellants argued that the finding of the trial Court that it was the Appellants and their thugs who removed the gate and destroyed the fence of the disputed land is perverse. Appellants submitted that trespass to land is unjustified interference with land in possession of another person but that the case of the Respondent, if proved, would amount to trespass to person and not trespass to land; CHIEF D.S. YARO VS. AREWA CONSTRUCTION LTD. & ORS. (2008) ALL FWLR (PT. 400) 603.

    On issue two, the Appellants contended that the Respondent did not prove he was entitled to special damages which the law requires must be strictly proved; UBN PLC. VS. SPARKLING BREWERIES LIMITED (1997) 5 NWLR (PT. 505) 344. The Appellants submitted there was no basis for the award of special damages made in favour of the Respondent.

    RESPONDENT’S SUBMISSION

    The Respondent’s counsel submitted that the standard of proof required in civil cases is discharged on the preponderance of evidence.

    Respondent’s counsel submitted that the evidence before the trial Court showed clearly the Respondent’s case was founded on trespass to land. Trespass to land is founded on proof of possession and the Respondent led credible evidence to establish that he was in possession until the Appellants brought thugs to disturb him. He submitted that the law ascribes possession to the party with a better title; NWOKORO & ORS. VS. ONUMA & ANOR (1994) 5 NWLR (PT. 343) 191.

    Respondent’s counsel also submitted that the trial Court adequately evaluated the evidence before it and there is no need for this Court to interfere. He cited WOLUCHEM VS. GUDI (1981) SC in support of this submission.

    On issue two, the Respondent’s counsel submitted that there was sufficient evidence before the trial Court to justify the award of special damages made by it. He contended that special damages need not be proved with mathematical exactitude and where there is unchallenged evidence to ascertain the worth of the damages such will constitute sufficient proof of special damages; DUMEZ VS. OGBOLI (1972) 3 SC 196.

    RESOLUTION OF ISSUES

    The Court in resolving the first issue held that trespass is an unlawful interference with one’s person, property or rights. It is a wrongful entry into a piece of land in actual or constructive possession of another. See TUKURU VS. SABI (2013) 10 NWLR (PT. 1363) 442 AT 461 PARA. H. The Court also held that since trespass is an injury to the right of possession, a person in possession can maintain an action in trespass against anyone but the true owner of the land or anyone who can trace his title to the latter.

    The Court held further that possession means the occupation or physical control land either personally or through an agent or servant. In order to establish possession a Claimant shall prove acts which may include cultivation of the piece of land, erection of a building or a fence and demarcation of the land with pegs at its corners. See THOMPSON VS. AROWOLO (2003) 7 NWLR (PT. 818) 163.

    The Court held that from the evidence placed before the trial Court, both parties claim to be in possession of the land. The law is that where both parties claim ownership of the same parcel of land, title is put in issue and the Claimant has a duty to prove he has a better title. See OYEWUSI VS. OLAGBAMI (2018) 14 NWLR (PT. 1639) 297.

    The Court held that the trial Court had found that the disputed land previously belonged to the Appellants’ family but had sold it to the aforementioned Chief Adetunji Fadayiro and thus divested themselves of any rights or interest on the land. The law is that where a party is aggrieved by any finding or decision of a lower Court, such grievance must be properly raised vide a ground of appeal. Any complaint not raised in a ground of appeal is not before an Appellate Court and the Court would not give any consideration to such. See EJOWHOMU VS. EDOK-ETER MANDILAS LIMITED (1986) 5 NWLR (PT. 39) 1. The Court thus held that since no ground of appeal was raised to challenge the above finding, the finding is valid. The decision of the trial Court affirming the Respondent’s title to the disputed land remains binding on all parties.

    The Court held further that once title is proved, the person who proves such title to the land is presumed to be in lawful possession. See AIYEOLA VS. PEDRO (2014) 13 NWLR (PT.1424) 409. Thus, the Respondent who has proved title to the land is presumed to be in lawful possession.

    The Court held that the trial Court had in the course of evaluating the evidence before it made findings as to the credibility of witnesses, believing those of the Respondent as opposed to those who testified for the Appellants. The trial Judge who had the opportunity to watch and observe the demeanor of the witnesses is in the best position to comment on their credibility. An Appellate Court will not interfere with a finding made by a trial Court based on credibility of witnesses except where the Court has not fully utilized the advantage of seeing and hearing the witnesses. See EYA VS. OLOPADE (2011) 11 NWLR (PT. 1259) 505. The Court thus held that the Appellants have not placed anything before the appellate Court to warrant its interference with the findings of the trial Court. The Appellants are thus liable to the Respondent for trespass to his land.

    In resolving the issue of the award of special damages, the Court held that trespass is actionable per se, i.e., without proof of damage. See GBEMISOLA VS. BOLARINWA (2014) 9 NWLR (PT. 1411) 1. The Court also held that special damages are such damages as the law will not infer from the nature of the act but exceptional in their character and must be claimed specially and proved strictly. The law is that a Claimant who claims entitlement to special damages has an obligation to plead and particularize any item of damage. See AJIGBOTOSHO VS. REYNOLDS CONSTRUCTION COMPANY LIMITED (2019) 3 NWLR (PT. 1659) 287. The Court proceeded to refer to the relevant paragraphs of the Respondent’s pleadings at the trial Court and held that cost of items claimed under the head of special damages was specifically pleaded by the Respondent.

    The Court also held that strict proof means proof to the satisfaction of the Court. It is not in all cases that documents or receipts of purchase are required to prove the items claimed under special damages. See G.F.K. INVESTMENT NIGERIA LIMITED VS. NIGERIAN TELECOMMUNICATIONS PLC (2009) 15 NWLR (PT. 1164) 344 AT 371 – 372 PARAS H – C. The Appellants did not specifically deny in their averments in the amended statement of defence and counter claim any of the items the Respondent had pleaded that were lost as a result of Appellants unlawful invasion of the disputed land. The Court thus held that in the circumstance all that was required of the Respondent was minimal proof which burden they discharged. See OGUNJUMO VS. ADEMOLU (1995) 4 NWLR (PT. 389) 254. The Court thus found the appeal to be lacking in merit.

    HELD

    The appeal was dismissed for lacking in merit.

     

    Appearances:

    Otunba Olumide Akinbinu                                     – For Appellant(s)

    Abiodun O. Adebayo                                              – For Respondent(s)

     

    Compiled by LawPavilion.

  • Wanted: Innovative processes for justice delivery

    Wanted: Innovative processes for justice delivery

    Benin-based lawyer, Douglas Ogbankwa writes that in the face of indequate funding of the judiciary, justice sector stakeholders must find creative ways to keep the system going, especially following the disruptions caused by the Coronavirus pandemic.

    Judiciary eggheads in Nigeria will need to be innovative to find a solution to the problem of delay in the court system caused by the Covid-19 pandemic.

    In other jusrisdictions, the existing infrastructure in place for virtual court sittings came in handy  to keep the judicial process going.

    The Chief Justice of Nigeria (CJN) and chief judges of the states issued Practice Directions allowing virtual court sittings mostly with the consent of parties.

    While some courts carried out minor activities using virtual systems, others did not.

    We have not learnt our lessons in the justice delivery system in Nigeria and as the second wave of the Coronavirus is on, the judicial sector is suffering from delay owing to the restrictions  of movements and filed processes.

    It does appears that the major impediment that clogs the wheel of progress of the virtual court system, is paucity of funds for all tiers of the judiciary, owing to the lack of financial autonomy.

    This brings to the fore the cardinal issue of judicial financial independence which has been guaranteed by Section 121 (3) of the Constitution of the Federal Republic of Nigeria,1999 (As Amended) by the 4th alteration.

    It states: “Every monies standing to the credit of the judiciary shall be paid directly to heads of courts from the consolidated revenue funds.”

    As explicit and unambiguous as this section seems, some governors aided by very senior lawyers have been circumventing this express provisions of the constitution, which in saner climes is even an impeachable offence. The President is a co-conspirator in this action of suppressing the judiciary and by extension the people.

    The gamut of equipment and infrastructure required  to fully integrate  virtual conferencing in our court system is huge considering the financial implications of same.

    It will be foolhardy for us to think that it is achievable, without financial authonomy of the judiciary. Lawyers act as if  everything is ok. Our judiciary is under siege by these mindless politicians. They now run the states as emperors as they determine almost every thing.

    It takes an extraordinarily courageous Judge to give judgment against the impunity of government in view of financial control they have over the judiciary. Some governors even treat state chief judges as their appointees issuing orders to him or her.

    It is, however, a chief judge that does not know his or her onions that will fall prey to such administrative malfeasance. Just as the governor is the head of executive, the chief judge is the head of the judiciary.

    They derive  their powers from the  Constitution. They are co-heads of different arms of government. According to the constitution, none is subordinate to the other following the Principles of separation of powers  clearly delimiting the powers of state in Sections 4,5 & 6 of the Constitution of the Federal Republic,1999 (As Amended,).

    The analysis above becomes apposite because it has affected the inability of the chief judges of the states to deploy the required infrastructure to fully kickstart  he much required virtual court  sittings that will facilitate quick dispensation of justice in this Covid-19 period.

    The courts should however be ingenuous in delivering Justice. It is completely unacceptable for a court that has prior knowledge that it will not sit not to send SMS or WhatssAp messages to lawyers, intimating them of this fact and allowing for a window for a three way conference call between counsel on both sides and the Court Registrar to take the next adjourned date.

    To this end, judges should release funds to their registries  from the sums standing to their credit monthly for the maintenance of courts. This will allow for better justice delivery. Those monies are to ensure the  efficient running of the court system and they should be applied for such and nothing else .

    As a beginning, matters for mention should be mentioned virtually and not physically and they should be mentioned expeditiously to allow for dates for hearing to be taken on time.

    The Bar Associations and the Judicial Service Commissions should also collaborate to have  joint training the trainers’ sessions so that the mastering of the virtual court system should trickle down to all judicial officers and  lawyers.

    The Covid-19 Pandemic has also given us an opportunity to embrace the e-filing system which the Corporate Affairs Commission has perfected. We should introduce this system in all courts in Nigeria to reduce or even eliminate physical contact in the filing process.

    The e-filing system will only be effective if we had a good case file management system which presupposes that all court documents should be accessible virtually,on line ,real time.

    As a precursor to the above indicated suggestion ,we recommend to all Court Registries in Nigeria the pioneering strides of the Court of Appeal ,Benin,Front Desk Unit where there is a Court of Appeal, Benin WhatsApp group made of leaders of the Bar within Jurisdiction and the court officials from where the cause lists of the court are weekly churned out on the platform. It is a 24 hour service .

    There are even scenarios, when they indicate on the platform by midnight that the court would  not sitting on that day. Other information about the court are also posted on the platform .I commend the the I.T. Compliant , Justice Helen Morenike Ogunmiwunju (JSC) for my lord’s resourcefulness in setting up  the platform when she  was the Presiding Justice of the Court of Appeal ,Benin Division. My Lord has now been elevated to the Supreme Court

    We also thank the Deputy  Chief Registrar of the Court of Appeal Benin an amiable character ,the head of the Front Desk Unit of the court, Mrs.Tugai  and her team in  the Court of Appeal,  Benin Front Desk Section for keeping the vision going .

    We urge all courts in Nigeria to adopt this working  template. When we see good developments let us commend and emulate same.

    The Nigerian Judiciary should wake up from its colonial mentality and brace up to the challenges of the 21st Century of using technology to make justice delivery seamless. This is the way to go in order for the  Judiciary not to become moot in the coming days of the second wave of COVID-19.We must get it right .

    Justice delayed is Justice denied per William E. Gladstone.

    Douglas Ogbankwa, a Benin based legal practitioner  is the immediate past publicity secretary of the Nigerian Bar Association Benin Branch and convener of the Vanguard for the Independence of the Judiciary and the Transparent Bar Initiative.

  • Ex-oil firm workers press for compliance with Supreme Court judgment

    Ex-oil firm workers press for compliance with Supreme Court judgment

    By Robert Egbe

    Former security employees of ExxonMobil have urged the Federal Government and the Attorney-General of the Federation (AGF), Abubakar Malami (SAN) to direct the oil giant to pay their exit entitlements as contained in a Supreme Court judgment of April 20, 2018.

    The 21 ex-workers made the plea in a statement signed on their behalf by Emmanuel Usoro and Tabiti Kehinde at the weekend,

    They said the firm was reluctant to comply with the apex court’s decision until the affected ex-staff staged a peaceful protest on its premises, prompting it to carry out documentation and commenced payment.

    They lamented that the firm unceremoniously stopped payment, leaving 21 of them unpaid, thereby denying them the fruit of their legal victory.

    However, when they contacted the company’s headquarters in Victoria Island, Lagos, ExxonMobil informed them that every one of them would be paid and that they should be patient.

    “The question is how long shall we be patient? We are tired of being patient since 2018 when most of us worked for ExxonMobil all our lives and have no other means of survival. No pension and no gratuity.

    “We served as Supernumerary Police Officers with ExxonMobil Police Unit in various capacities during our youthful ages. Our primary assignment was to protect life and properties in the Loss Prevention and Control (Security) department of the Multinational Oil Company, which we did with all youthful vigour, zeal and enthusiasm that the onus of the service demanded and placed on us, not minding the risk, threat, even death of some of our colleagues.

    “Yet, we were not deterred by the hatred, scorn and underdog treatment to which we were subjected while performing our duties over the years,” the group lamented.

    Some of them, they claimed, were disengaged from the service against their wish and without notice or any form of benefits. This left them with no choice but to seek redress in court.

    They added: “We engaged the services of Femi Falana (SAN), who filed a suit in court to pursue our claims. The matter was a protracted legal battle for years but finally, in the first quarter of 2018, the Supreme Court of Nigeria delivered judgment in our favour.

    “The judgment asserts that all personnel that served in that unit, dead or alive, must be accorded with all the rights in accordance with ExxonMobil employees status. However, ExxonMobil refused to comply with the judgment until they were pressurised.

    ”Reluctantly, the management of ExxonMobil commenced the payment of these benefits in October 2018 and categorized the payment system into three stages, namely; active service (those that were in service when the judgment was delivered); the retirees (those that were forcefully or willingly retired but alive and those retired but dead.

    “All personnel in the first category, a large number of others in the second stage, and a select few in the third stage were paid, thereby making nonsense of the payment categorisation.

    “We are dying of hunger and sickness especially in the recent COVID-19 pandemic, where the economic situation has deteriorated to unbearable levels.”

    They warned that they would resort to all legal means to get their entitlements, including picketing of the offices of the defendant if he continues to disobey the apex court decision.

  • The case for anonymous court proceedings in Nigeria

    The case for anonymous court proceedings in Nigeria

    In this article, Ogbonna Chukwumerije of Pinheiro LP examines the operation of anonymisation of court proceedings in the United States and European Union as well as the need for a review of the rules of our various courts in Nigeria.

    The openness of judicial proceedings is a fundamental principle enshrined in Section 36 of the 1999 Constitution (the right to a fair trial). This underpins the requirement for a claimant, defendant and witness to be identifiable not only to the parties in the suit but also to the open court. It supports the ability of the defendant to present his case and to test the prosecution or claimant’s case by cross-examination of the witnesses.

    The principle of open justice can sometimes act as a bar to criminal prosecutions particularly in rape, homicides and other organised crimes. Witnesses may be apprehensive of the fact that in the event that their identities are disclosed to the defendant, the defendant’s associates or the public in general, then they, their families or friends will be at risk of serious harm. The risk present in the open justice principle extends to civil matters, particularly cases bordering on divorce, medical status or mental health where the disclosure of the name of the parties can lead to the possibility of them being ridiculed, mocked and or derided by the public.

    Recognising this, Section 36(4) (b) of the Constitution of the Federal Republic of Nigeria 1999 makes exceptions to open justice system where the court or tribunal is satisfied that it would not be in the interest of the public for any matter to be publicly disclosed. This position has been supported by recent enactments, however, the Nigerian approach leaves more to be desired. The recent enactments made by the National Assembly failed to make provisions for the possibility of commencing a suit in a pseudo name and/ or anonymously in deserving cases as is being done in other jurisdictions.

    The concept of anonymity of court proceedings:

    Anonymity in court proceedings goes with privacy or secrecy in proceedings. It is a means of balancing the right of a person to privacy with the justice principle of fair hearing.

    Where a person considers it pertinent that certain personal data relating to him or her should not be disclosed in published material relating to a case brought before the court, such person may apply to the court that he or she be granted anonymity in the context of that case. Anonymity can be in form of private proceedings, use of initials instead of the full names of the party seeking privacy. An essential consideration in favour of non-disclosure is the desire to have cases heard on their merits and that litigants should not be hindered by fear, ridicule, derision or shame. The reality is that many persons will rather forgo the vindication of their rights than have details of their private lives and personal medical facts open to public scrutiny.

     

    2.0. Scope of anonymity in the Nigerian legal system

    Section 36(4) (b) of the Constitution of the Federal Republic of Nigeria 1999 provides that where the court or tribunal is satisfied that it would not be in the public interest for any matter to be publicly disclosed, such matters can be held privately.

    Non-disclosure of sensitive data of victims of certain offences and or witnesses in certain proceedings has been recognised by Section 232 of the Administration of Criminal Justice Act, 2015 which relates to criminal proceedings, specifically sexual offences, terrorism, trafficking and economic and financial crimes. Also, the practice of anonymising the full names of witnesses in Statements on Oaths to be used as evidence at the trial of election matters/petitions in Nigeria, usually to protect their identity, has become accepted and established by the Election petition Tribunals and endorsed by the appellate courts. See Joseph v. Labour Party (2015) LPELR-42145 (CA), Orji & Anor v. INEC & Ors (2020) LPELR-49525(CA).

    However, there are no provisions for other sensitive matters like medical status, mental health and divorce proceedings which sometimes involve facts which the petitioner may be unwilling to disclose to the public due to the reputational damage and possible societal stigma that may follow. More importantly, there are no provisions for the anonymisation of the names of the person and/ or parties intending to commence the action and the need to conceal their identities and/ or sensitive data when judgment is being delivered and/or published.

    It is important to state that Section 36(3) of the 1999 Constitution provides that the proceedings of a court or any tribunal relating to the matters mentioned in subsection (1) of this section (including the pronouncement of the decisions of the court or tribunal) shall be held in public. Also, Section 294 of the Constitution enjoins the Court to furnish each party with a copy of the judgment upon the conclusion of proceedings. The import of the above is that once a person is party to or witness in a suit, sensitive or personal data relating to the person become public knowledge, and in the language of the law, knowledge to the whole world.

     

    3.0. Comparative analysis of anonymisation provisions in Nigeria and other jurisdictions

    3.1. The United States’ Anonymisation System:

    The United States generally operates an open court system in line with the principles of fair hearing. As a default, a fair trial is an open trial. US Federal Rules of Civil Procedure, Rule 10(a), 2019 states that the title of the complaint must contain the names of all the parties.

    American courts have made it clear that the right to an open trial may give way in certain cases to other rights or interests such as the defendant’s right to a fair trial. Therefore, litigants are allowed to proceed anonymously or under a pseudonym in limited circumstances when non-disclosure is necessary to “protect a person from harassment, injury, ridicule or personal embarrassment.”

    Rule 5.2., Federal Rules of Civil Procedure permits privacy protection for filings made with the court pertaining to minors. It states that: “Unless the court orders otherwise, in an electronic or paper filing with the court that contains an individual’s social security number, taxpayer-identification number, or birth date, the name of an individual known to be a minor or a financial-account number, a party or non-party making the filing may include only: (1) the last four digits of the social-security number and taxpayer identification number; (2) the year of the individual’s birth; (3) the minor’s initials; and (4) the last four digits of the financial-account number.”

    3.1.1. Balancing the Right of Privacy with Public Interest in the United States of America:

    Some circuits have adopted a balancing test to determine the specific circumstances that will warrant the grant of anonymity. Some of these factors include;

    .The severity of the threatened harm;

    .The reasonableness of the anonymous party’s fears;

    .The anonymous party’s vulnerability to such retaliation;

    .The precise prejudice at each stage of the proceedings to the opposing party, and whether the proceedings may be structured so as to mitigate that prejudice; and

    .Whether the public interest would be best served by requiring that the litigants reveal their identities.”

    (See Does I thru XII v. Advanced Textile Corp., 214 F.3d 1058, 1067-68 (9th Cir. 2000).

    The first two factors are deemed the most important and are generally considered together.

    The possible argument that may erupt on the basis that court proceedings and documents ought to be accessible to the public in view of the vital role they play in the society can be rebutted by demonstrating that the danger and/ or derision which the Plaintiff/Claimant may likely face in the event that the suit is not commenced anonymously exceeds public interest as explained in some cases below.

    In the case of Lauren B. v. Baxter International Inc. & Subsidiaries Welfare Benefit Plan for Active Employees, 298 F.R.D. 571, 573 (N.D. Ill. 2014) which involved a claimant who was seeking reimbursement for medical expenses relating to residential treatment for an eating disorder (a serious mental health condition), the court permitted the plaintiff to litigate under a pseudonym. “In this instance,” the court explained, “that balancing of harms favours Lauren’s opposition to the motion – there are indeed ‘compelling reasons of personal privacy’ at issue. Lauren’s response confirms that her severe mental illnesses, including but not limited to the long-standing eating disorder from which she suffers, create death risks and a threat to her recovery which public disclosure would entail”. The above is truly the exceptional case that rebuts the general presumption referred to earlier, in view of the identified harm and risk of harm to Lauren that public disclosure may cause.

    Also, in Doe v. County of Cook, the Court held that in a few cases, justified interest in privacy warrants non-disclosure of a litigant’s name. Also, in Doe v. City of Chicago, 360 F.3d 667, 669 (7th Cir. 2004), the court held that judicial proceedings are supposed to be open. The court went further to hold that the presumption that the parties’ identities are public information and the possible prejudice to the opposing party from concealment can be rebutted by showing that the harm to the plaintiff… exceeds the likely harm from concealment”.

    It is important to state that the courts in America have also refused to grant applications seeking to commence actions anonymously in non-deserving cases. See the case of Doe v. Amazon, 2011 WL 13073281(W.D. Wash. 2011)where an actress sued Amazon claiming that a database it owned, IMDB.com, improperly disclosed her age and that if her age was known, she would become blacklisted in the film industry. The court in its ruling against the actress found that while embarrassment, ridicule and retaliation were serious harms, the threat was insufficient to allow her to proceed anonymously. See also A.G. v. Unum Life Insurance Company of America, 2018 WL 903463 (D. Ore., Feb. 14, 2018).

    The position under the European Union:

    The Court of Justice of the European Union ensures that when acting in its judicial capacity, the principle of open courts and public information is reconciled with the protection of personal data of the persons mentioned in cases brought before it.

    The court allows for a person to contact the Court of Justice requesting the grant of anonymity where such a person considers it necessary that certain personal data on him or her should not be disclosed in published materials. However, for such a request to be considered, it must be made at the earliest possible stage of the proceedings.

    Also, where anonymity has been granted by the referring court or tribunal, the Court of Justice will respect that anonymity in the preliminary ruling proceedings pending before it (Article 95 of the Rules of Procedure of the Court of Justice). After the request for a preliminary ruling has been lodged, the court can also anonymise the case of its own motion or at the request of the referring court or tribunal or of a party to the main proceedings.

    Where anonymity has been granted by the General Court in a case against which an appeal has been brought before the Court of Justice, the latter will as a rule respect that anonymity in the proceedings pending before it. Article 190(3) of the Consolidated Version of the Rules of Procedure of the Court of Justice 2012 provides for anonymisation in appeal cases. At the duly reasoned request of a party to the proceedings or of its own motion, the court may, if it considers it necessary, also replace the name of one or more individuals mentioned in the context of the proceedings with random initials.

    Recommendations for the Nigerian System:

    The civil procedure rules of the various courts in Nigeria need to be reviewed to allow parties, in deserving cases, commence an action in a pseudo name or anonymously. Anonymity should be granted by the court where the right to privacy outweighs public interest and possible consequences of undisclosed identity. In line with European Union practice, a request for anonymity must be made ex parte at the earliest possible stage of the proceedings.

    Chukwumerije is a team lead at Pinheiro LP, his core areas of practice and interests are Intellectual Property Law and Technology Law.

  • Law’s role in impact investing

    Law’s role in impact investing

    In this piece, Chinenye Uwanaka, Nathaniel Ojobo and Sandra Chude analyse the nature, benefits and legal basis of impact investing, among others. 

    Chinenye Uwanaka

     

    Nathaniel Ojobo

     

    Sandra Chude

     

    DEFINITION OF THE CONCEPT

    Impact investing is the allocation of assets (in the form of investments) into companies or organisations with the aim of bringing about positive social or environmental impact while also anticipating profit from such investments. Impact investment challenges the long-held view that social and environmental issues should be addressed only by philanthropic donations and that market investments should focus exclusively on achieving financial returns.

    The strategy actively seeks to make a positive impact by investing, for example, in nonprofits that benefit the community or in clean-technology enterprises that benefit the environment. Impact investing can create significant value for investors and society as a whole. Impact investing attracts individuals as well as institutional investors including hedge funds, private foundations, banks, pension funds, and other fund managers.

     

    KEY CHARACTERISTICS OF IMPACT INVESTING

    1. It aims to have a positive environmental or social impact: Impact investing uses investments to help address social and environmental issues like climate change, hunger, poverty, homelessness, and epidemic like HIV/AIDS and COVID-19.
    2. It delivers a financial return on capital: Impact investing is foremost a business activity and, therefore, expected to yield a financial return on capital or, at least a return of capital.
    3. It spans a broad range of sectors and regions: Impact investing is inclusive across asset classes, from cash equivalents and microfinance, to private equity and clean technology.
    4. It can be used to regularly measure social and environmental impact regularly: The impact investor regularly assesses and reports the social and environmental performance of existing investments to ensure transparency and accountability, and inform potential investors.

     

    TYPES OF IMPACT INVESTMENT

    The opportunity for impact investments varies and investors may choose to put their money into emerging markets or developed economies. Hence, there is no hard and fast rule on the delineation as to what is and what is not impact investment.

    However, Impact Investments span across number of industries including:

    1. Healthcare e.g., developing and providing technology that will enhance good health of humans, telemedicine/telehealth/e-health
    2. Education e.g., emerging online education and schools especially during and post-COVID
    3. Energy, especially clean and renewable energy
    4. Agriculture
    5. Microfinancing e.g., digital microfinance banking platforms.
    6. Housing

    TYPES OF IMPACT INVESTING

    1. Institutional Impact Investing:

    These come in the form of investments carried out by Firms and Institutions singularly or in partnership with each other. Private equity and venture capital investors largely fall under this category. Pension funds investors (either singularly or in collaboration with Government and Corporations) and Foundations with endowments are also included herein.

    1. Individual Impact Investing

    Under this category are private persons. Examples include syndicate and pooled investment platforms and digital microfinance banks which issue micro loans. An example of the latter is MyC4, a Danish Company founded in 2006 and which allows retail investors to loan money to small businesses in African countries via local intermediaries. Though now liquidated (since 2016) and closed, they helped over 19,000 investors to help finance over 8000 businesses in seven African countries. Also included in this category are Exchange Traded Funds traded on the Stock Exchange as a public stock and available to anyone with a stock brokerage account.

    WHO CAN CARRY OUT IMPACT INVESTMENT?

    1. NGOs
    2. Development Finance Institutions
    3. Financial Institutions/Banks
    4. Individual Investors
    5. Charities
    6. Government Organisations
    7. Private Organisations
    8. High net worth Individuals
    9. Pension fund and Insurance Companies

    LEGAL FRAMEWORK/REGULATORY REGIME FOR IMPACT INVESTMENT IN NIGERIA

    In Nigeria, there is no law whose sole purport is to particularly regulate impact investments. However, there are several laws with implications for impact investment and investors. They include:

    1. The Companies and Allied Matters Act
    2. The Nigerian Investment Promotion Act
    3. The Investments and Securities Act
    4. Consolidated Rules and Regulations of the Securities and Exchange Commission
    5. The Finance Act
    6. The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act
    7. The Industrial Inspectorate Act
    8. The Industrial Development (Income Tax Relief) Act
    9. The National Office for Technology Acquisition and Promotion Act
    10. The Rulebook of The Nigerian Stock Exchange 2015
    11. The Immigration Act

    Considering the many government institutions that one will have to deal with towards obtaining relevant certifications, permits and or licences, the Nigerian Government, through the Nigerian Investment Promotion Commission (NIPC), created a One-Stop Investment Centre (OSIC) to help bring together all the relevant regulatory bodies and institutions that one may need to relate with for the purpose of obtaining the relevant certifications and or licenses before commencing operations in Nigeria.

    The idea behind the creation of OSIC is to help investors (including impact investors)

    conveniently set up their businesses in Nigeria. How well this aim has been achieved is in doubt.

    A CONSIDERATION OF THE CONCEPT FROM THE NIGERIAN PERSPECTIVE

    Nigeria, being a developing country in the third world, has its fair share of socio-economic challenges ranging from poverty, hunger, unemployment, illiteracy, lack of (and sometimes, inadequate) social amenities, security, etc. Issues of climate change (being a general problem world-over) also pose a challenge to the country. These

    challenges are natural attractors of impact investors both within and outside Nigeria.

    Hence, the obvious intervention being carried out by some of these impact investors in some of Nigeria’s sectors. Examples of such investors are Uber, Bolt, Gokada, Oride (all car and bike hailing services mostly operational Nigeria), Learners Corner International Limited (a Nigerian Company that uses technology to deliver education to Nigerian Children especially as a result of COVID), LifeBank (a startup that works with hospitals round the clock to find lifesaving medical products and deliver same to the hospitals in the right condition across Africa), Wecyclers, (a company that offers convenient household recycling services using a fleet of low-cost cargo bikes), Andela(a technology company that recruits and trains local software developers at little or no cost, who in turn work remotely for them for various international companies, thereby generating employment opportunities for thousands of the unemployed populace in Nigeria), and the many Agritech Firms (e.g., Farmcrowdy) that use technology and crowdfunding in furthering their existence and objectives.

    Furthermore, a good number of impact investing funds have been made available by some foreign development institutions and bodies. For instance, the African Development Bank invested in the Africa Food Security Fund (AFSF) to boost agribusiness SMEs and enhance food security in some African countries like Nigeria. Also, the International Finance Corporation made an investment in Hygeia Nigeria Limited to improve the healthcare infrastructure in Nigeria and to facilitate access to quality healthcare services.

    Locally, the Nigerian Capital Development Fund (NCDF) launched an Impact Investment Note and Fairshares investment platform to enable impact investors make investments and become stakeholders in NCDF with the aim of driving sustainable impact projects in the country.

    Notable Points

    1. Nigeria is a country faced with an avalanche of socio-economic challenges like hunger, poverty, unemployment, poor healthcare, poor/inadequate infrastructural facilities, illiteracy, among others, which largely affects its growth and development.
    2. Data from the National Bureau of Statistics reveals Nigeria’s unemployment rate as at the second quarter of 2020 to be 27.1 per cent indicating that about 21.7 million Nigerians remain unemployed.
    3. In 2019, The National Bureau of Statistics (NBS) released its “2019 Poverty and Inequality in Nigeria” report, which highlighted that 40percent of the total population, or almost 83 million people, live below the country’s poverty line of 137,430 naira ($381.75) per year.
    4. However, these challenges create an opportunity for impact funds and impact investment.
    1. Over the last few years, impact investments have continued to grow in Nigeria. Its impact, however, might not be significant amidst the plethora of challenges faced across the country. This myriad of challenges impedes the expansion and maximum realisation of its potential to deliver social, economic and environmental returns at scale.
    2. Nevertheless, these perceived challenges should not serve as an excuse to bury the idea of impact investment. On the contrary, it is a time for stakeholders to reevaluate guiding principles and collaborate to build a strong socio-economic society.
    3. For investors willing to bear the risks and challenges, Nigeria holds enormous promise. Its sheer size and strong growth prospects position it well to continue its role as a leading economic powerhouse on the African Continent. Moreover, the large proportion of its citizens underserved by basic goods and services provide a wide variety of opportunities for both financial and social/environmental impact.

     

    LIMITING FACTORS/CHALLENGES TO IMPACT INVESTING IN NIGERIA

    While it is clear that impact investments have helped to strengthen Nigeria economically and social wise, several challenges still militate against the sustenance and continued growth of impact investment. Highlights of some of such militating factors are as follows:

    1. Difficulty while sourcing for viable investments that meet both financial and social/environmental objectives. This is as a result of limited capacity of sustainable social enterprises in Nigeria. Low deal flow is partly due to the limited number of sustainable social enterprises or impact investees able to demonstrate a sufficient track record and capacity development following the risk appetite of impact investors. This is coupled with limited ability to measure and report adequately on impact performance where such capacities do exist.
    2. Difficulty Exiting Investments: Value in private equity investments in the traditional financial markets is sought and realised through an exit point at which the investor sells their stake in a firm. This can be done through Initial Public Offerings (IPOs) as the endpoint of the funding value chain. The challenge of finding profitable and varied exit options stems from the fact that most African capital markets are still at a relatively early stage of development.
    3. Unclear Policies and Regulatory Environment: While Nigeria was reported by the World Bank to have improved its ease of doing business in the World Bank Report of October, 2019, the issue of uncertainty in policies (almost always a consequence of state politics) and regulations has hampered the development of impact investments. Currently, Nigerian enterprises are generally challenged by a poor environment for doing business, and investors constrained by our developing financial markets.
    4. Lack of Ecosystem Synergy: There is a poor synergy between sustainable social enterprises, entrepreneurs, investors and innovation networks. The majority of Nigeria’s sustainable social enterprises are not members of professional associations or other formal networks, which makes finding investible enterprises and entrepreneurs a challenge for investors. Furthermore, sustainable social enterprises may have limited access to academic and research institutions focusing on research and development (R&D) that can be developed into goods and services for markets.
    5. Negative perception about the unprofitability of impact investing.
    6. Concentration of actors in particular locations.
    7. THE WAY FORWARD/CONCLUSION

    It is proposed that the following be adopted as solutions towards some of the problems identified above:

    1. Enacting of an all-inclusive and targeted legislation for impact investors and investment
    2. Setting up modalities for proper integration of social enterprises into one umbrella body for easy identification of investors
    3. Setting up avenues (like associations and a regulatory body) for education and disabuse of negative and untrue mindset pertaining to impact investment
    4. Establishing a central data system to provide information on impact measurement and tracking and other indices emanating from impact investment. This will enable impact investors and other stakeholders make informed decisions and choices.
    5. Enable and continue to enhance the ease of business operations through means such as adopting tax free regimes or reduced tax obligations for impact investors.

    With the great human capital that Nigeria possesses and the numerous economic cum social challenges that bedevils her, it can be argued that the country is a fertile ground for impact investors and investments. It is the view of the writers of this piece that impact investment is indeed a goldmine whose potential remains largely untapped. Therefore, government and other stakeholders should endeavour to do the needful towards establishing the apparatus needed.

    NOTE: This piece is a work of research and reference was had to some already existing piece of work from which some of the points herein were sourced. We do not take credit for such parts of this piece. 

  • NBA seeks probe of IGP  Monitoring Unit

    NBA seeks probe of IGP Monitoring Unit

    By Adebisi Onanuga

    The Nigerian Bar Association, Epe branch has  urged  the  Inspection-General Of Police, (IGP) Mohammed Adamu to investigate activities of the  Monitoring Unit under his office,

    The NBA is alleging that some of the unit’s officers have been aiding and abetting land grabbers and using police power to intimidate residents in the Lekki  area of Lagos

    The Epe NBA told journalists at a conference that it had forwarded a petition to the IGP in which it alleged that the police unlawfully aided a fake lawyer with fraudulent titles to use of thugs to  terrorise residents of the axis.

    The petition, signed by its Secretary, Jimoh Saliu on behalf of the Chairman, Ademola Koko and the executives, claimed that the unit had been conniving “with a land grabbing dynasty and providing cover for them for corrupt influences.

    “We have been inundated with several land grabbing complaints by this set of people within our jurisdiction, with no regard for the rule of law and constituted authorities. Instead of referring the matter of land dispute to the court of competent jurisdiction, they solicit the help of their cohorts in the monitoring unit of the IGP who use police powers to hoodwink

    The petition was sequel to a February 26, 2021 emergency meeting of the association pursuant to the “public protection right of the citizens as provided under the constitution of the NBA to take a stand on the urgent and numerous calls of the terrorised citizens of Nigeria.”

    The petition was copied to the Chairman, Police Service Commission,  Attorney-General of the Federation, the Chief Judge of Lagos State, the state’s Attorney-General, the Permanent Secretary, Land Bureau, the state’s Surveyor General and all the State Chairmen of NBA branches in Lagos State.

    The association claimed to have received a petition on February, 8 2021, from the office of Messrs Suraj Umar & Co complaining of  criminal activities and conspiracy of a lawyer involved in a land grabbing case in Sangotedo Town, Lekki.

    “The matter was referred to the Disciplinary Committee of the Branch who upon search on the NBA’s website could not find the name of the lawyer on the list of lawyers in Nigeria.

    “This prompted us to verify physically with the National Secretariat on February 18, 2021 and the National Secretary came up with the same result.

    “The National General Secretary advised us to try the Supreme Court of Nigeria which we also wrote to with the attached fraudulent documents purportedly prepared by him and fake execution in favour of the land grabbers.

    “Shockingly, the said lawyer’s name could not be found by the Supreme Court and this prompted the Chief registrar to put a call through to the lawyer to no avail”, it said

    The petition said rather than the police doing the needful, they  gave  flimsy excuses in an attempt to shy away from their duty.

    The NBA lamented that land grabbers had however kept threatening the peace of the people in Sangotedo  area of Lekki that they should vacate where they had been living for many years.

    “We have advised the community, most of whom are government allottees, some with governor’s concept and the customary owners to maintain law and not resort to self help despite provocation as Lagos cannot tolerate another violence and that they they should resort to Lagos State Taskforce on Land grabbers, which they did.

    The NBA Epe, therefore, urged the IGP to restrain members of the Monitoring Unit  from coming to Lekki axis to dabble into land matter adding  ”the  Supreme Court has said it times without number that disputants should approach the courts of competent jurisdiction on land matters as they are civil in nature.”