The Nation Newspaper

Tag: AMCON

  • N976b AMCON bonds: Holders want 30% proceeds in cash

    N976b AMCON bonds: Holders want 30% proceeds in cash

    Holders of the Asset Management Corporation of Nigeria (AMCON) Series V N976 billion Zero-Coupon Bonds due last month opted to take about 30 per cent of redemption proceeds in cash, a report by the FBN Research, an investment and research firm, has indicated.

    It said the holders’ choice of repayment has created an additional liquidity overhang since the maturity of bonds on October 31.

    “There has been an additional liquidity overhang since the maturity of Asset Management Corporation of Nigeria (AMCON) bonds, totaling close to N900 billion on  October 31. The holders opted to take about 30 per cent of the redemption proceeds in cash,” the report said.

    AMCON had last December redeemed its issued Series I, II, III and IV Bonds. The bad debt lender has  fully retired over N1.8 trillion of all bonds issued since inception.

    AMCON’s Head, Strategy & Communication, Kayode Lambo, said the step put it ahead of its planned redemption schedule, as all its publicly held bonds have been redeemed before the end of its fourth full year of operations.

    The  Corporation had issued zero coupon bonds with a face value of N5.67 trillion as Series I, II, III, IV and V, between December 2010 and December 2011.

    The Series V redemption was financed utilising AMCON’s internally generated cash flows and the Banking Sector Resolution Trust Fund (the Sinking Fund).

    Lambo said the Sinking Fund is funded by the yearly contributions from the Nigerian Deposit Money Banks and the Central Bank of Nigeria (CBN), adding that the collaboration and support of the apex bank was critical to the success of the process.

    AMCON’s Executive Director, Finance & Corporate Services/CFO, Mrs. Mofoluke B. Dosumu, said: “The Redemption represents a major milestone in the reduction of AMCON’s obligations, as it signifies the retirement of all AMCON bonds held by the public markets.

    “We will continue to make good progress with respect to our obligations to the Central Bank of Nigeria, presently the sole holder of AMCON’s outstanding debt obligations.”

  • How AMCON, NNPC, NIMASA cheated Fed Govt, by Reps

    How AMCON, NNPC, NIMASA cheated Fed Govt, by Reps

    The House of Representatives Committee on Finance yesterday chided the Federal Ministry of Finance, Office of the Accountant General of the Federation (AGF) and the Budget Office to desist from indulging in unconstitutional practice of dictating the amount of operating surplus to be paid by ministries, departments and agencies (MDAs) into the Consolidated Revenue Fund.
    The Committee also named defaulting MDAs which refused to remit their operating surpluses to the Consolidated Revenue Fund as  Nigerian National Petroleum Corporation (NNPC), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Port Authority (NPA), Asset Management Corporation (AMCON), Nigerian Communication Commission (NCC) and National Agency for Food and Drug Administration and Control (NAFDAC).
    In a bid to halt the trend, Chairman, House Committee on Finance, Abdulmumin Jibrin,  gave the Fiscal Responsibility Commission (FRC) a 7-day ultimatum to send the list of defaulting ministries, departments and agencies which refused to remit their operating surpluses to the government coffers.
    The lawmaker was responding to complaints by the acting Chairman of the Commission, Victor Muruako who stated that some agencies of government are refusing to submit their records of remittances to the commission.
    Jibrin while , while expressing worry over the decline in the international price of crude oil, said there is a need to look inwards and therefore urged the Commission to muster the required will-power to discharge its statutory functions.
    “Now, all the challenges that we are facing in the country is because of the leakages we have in our revenue, otherwise, I keep saying if we look inwards in the country, we have enough resources, we have a lot of money in the system. And so, when you’re not equipping the agency that has the responsibility to serve as a watchdog to this process, I don’t think you’re doing much good to the country.
    “You are mentioning NCC and others, what about the NNPC which is the biggest culprit in this conspiracy against the country? AMCON, NIMASA have all been on our radar for so many years. They claimed to be operating at a loss. The rate of non-remittances from the NNPC alone is ridiculous.
    “As for AMCON and NIMASA, they have been claiming to run at a loss year-in year-out, but now that AMCON is making profits from the sale of banks and other businesses, you should follow them up and ask for their financial statement and record of their remittances.
    “One other notorious agency which puts up a holier than-thou attitude but with a very hazy fiscal behaviour is the Financial Reporting Council. They are doing the job that the Commission should be doing. Their activities are supposed to be under the radars of the Commission. The Committee has received hundreds of petitions concerning the malfeasance that is going on there. Go after them and make sure that they know their boundaries.”
    The lawmaker chided the practice whereby the Ministry of Finance and the Accountant-General of the federation and the Budget Office tell agencies what to pay into the consolidated Revenue Fund.
    ”The Accountant-General of the federation and the Ministry of Finance do not have the power to tell any agency what to pay into government coffers. The law is clear on it. The fiscal responsibility commission is the agency that determines what agencies pay,” he said.
    Muruako spoke of the need to amendment of the Fiscal Responsibility Act 2007 to bestow the power to prosecute and sanction any defaulting agencies on the Commission
    He said: “We need the powers to prosecute and punish offenders of fiscal responsibility. Countries who have gone ahead to make progress in their economies are those who pay adequate attention to their fiscal responsibility regimes. Agencies have succeeded in making government look like an orphan through their attitude towards the Commission in a manner that they doctor their account books using different methods to defraud government.
    “We have had issues with the NCC (Nigeria Communications Commission) until the Committee intervened and they paid N22.9 billion for 2007 and 2010. The last N2 billion was paid in April. We are yet to look at their books for 2011 and 2013. Agencies are in the habit of declaring loses even before our team of experts go to check their books. Some of them have formed the habit of not respecting this Commission. NAFDAC has also refused to pay returns, saying that the Commission would soon be closed down.”
    According to him, the budgetary allocation for capital projects for the Commission declined from N220 million in 2009 to N53 million in 2014.  He pleaded for the support of the lawmakers for additional funding to allow the Commission carry out its statutory duties.
    Also yesterday, the Economic and Financial Crimes Commission (EFCC) said it has recovered over N5billion from those involved in the oil subsidy scandal.
    The commission also said 40 persons and organisations are still on trial for the subsidy scam.
    The only exception is the Managing Director of Fargo Energy Limited, Seun Ogunbambo, who was docked for stealing N4.5 billion in bogus subsidy claims.
    The suspect , who absconded after he was granted bail by the court,  had been declared wanted by the commission.
    Besides, the EFCC said it is prosecuting 441 persons for crude oil theft and pipelines vandalisation.
    The Head of Media and Publicity of the EFCC, Wilson Uwujaren made the disclosures  in Abuja while responding to questions from newsmen  at the Forum of Spokespersons of Security and Response Agencies (FOSSRA/I-Nigerian Initiative.
    He said  71 oil thieves had  been jailed by various courts including 45 Nigerians, 10 Ghanaians, 13 Philippines, 10 Indians, two Togolese, one Cameroonian and one Myanmar.
    Uwujaren said: “As we speak, the commission has recovered over N5 billion from persons implicated in the subsidy scam, even as it intensifies effort to bring more suspects to book.
    ”A few months ago, two Indians, Sailesh Kumor Singh, Chadrashekar Sharma were jailed after successful prosecution by the Commission. The duo were among 12 suspected oil thieves arrested in Brass, Bayelsa State in 2012 by the JTF with 157,822 litres of suspected stolen crude oil.
    “The two Indians bagged 15 years jail term. Beside that, a total of 71 persons have been convicted for oil theft which include 45 Nigerians, 10 Ghanaians, 13 Filipinos, three Indians, two Togolese, one Camerounian and one Myanmar.
    “In the ongoing oil subsidy cases, one of the major kingpins, Seun Ogunbambo, Managing Director of Fargo Energy Limited who was docked for allegedly stealing N4.5 billion in bogus subsidy claims has absconded and disappeared from the shores of Nigeria and has consequently been declared wanted.
    “Also, one Azmat Mahmood, a German citizen of Pakistani extraction has also been declared wanted after allegedly using his company Nimex Petroleum Limited to defraud the federal government of over N1.3 billion in a bogus subsidy deal.”
    He also allayed fears that the prosecution of other politically exposed persons may have been halted  and confirmed that the son of former national chairman of Peoples Democratic Party (PDP), Mahmud Tukur and Abdulahi Alao, a son of late Alhaji Arisekola Alao among others were still ongoing.
    On why politically exposed persons facing charges of corruption were allowed to vie for elective offices, Uwujaren however, said the commission was “not in a position to give an advisory on whether individual undergoing prosecution for financial crimes are allowed to stand for elections.
    ”It is left to the Independent National Electoral Commission (INEC) to make that decision,” he added.
    On reforms in the commission, he said  the EFCC Chairman, Mr. Ibrahim Lamorde had lived up to his pledge to re-professionalize the agency.
    Uwujaren said: “One of the strategies which he promised to deploy in tackling the issue of integrity was the introduction of polygraph test for officers and new employees. As we speak, the Commission now has state-of-the-art polygraph equipment with a crop of polygraph examiners trained at the American International Institute of Polygraph in Atlanta, Georgia, United States.
    “New and old staff of the Commission are now regularly subjected to polygraph test in a determined effort to ensure that they do not deviate from the core values of the Commission, which are courage, professionalism and integrity.
    “Fortunately, public and institutional confidence are being restored in the EFCC with relationship with international law enforcement organizations and development partners experiencing a rebound.”

  • AMCON redeems N976b bonds

    AMCON redeems N976b bonds

    The Asset Management Corporation of Nigeria (AMCON) yesterday announced the completion of scheduled redemption of the AMCON Series V N976.042 billion Zero Coupon Bonds  due October 2014. The redemption was done at par.

    AMCON had last December redeemed its issued series I, II, III and IV bonds. AMCON has now fully retired a total of about N1.87 trillion of all bonds issued since inception.

    It’s Head, Strategy & Communication, Kayode Lambo, said the step puts it ahead of its planned redemption schedule, as all its publicly held bonds have been redeemed before the end of its fourth full year of operations.

    AMCON had issued zero coupon bonds with a face value of N5.67 trillion as series I, II, III, IV and V, between December 2010 and December 2011.

    The Series V redemption was financed utilising AMCON’s internally generated cash flows and the Banking Sector Resolution Trust Fund (the Sinking Fund).

    The Sinking Fund is funded by annual contributions from Nigerian Deposit Money Banks and the Central Bank of Nigeria (CBN).

    Lambo noted that the collaboration and support of the CBN was critical in ensuring the success of the process.

    AMCON’s Executive Director, Finance & Corporate Services/CFO, Mrs. Mofoluke Dosumu said the redemption represented a major milestone in the reduction of AMCON’s obligations, as it signifies the retirement of all AMCON bonds held by the public markets.

    “We will continue to make good progress with respect to our obligations to the Central Bank of Nigeria, presently the sole holder of AMCON’s outstanding debt obligations,” Dosumu said.

  • Banks’ earnings’ decline will persist, says RenCap

    Banks’ earnings’ decline will persist, says RenCap

    Tough requirements imposed by the banking sector regulator, have led to earnings’ decline, Renaissance Capital (RenCap) has said.

    The investment and research firm, in a comparison of core regulations across key banking systems in Sub Saharan Africa, revealed that Nigerian banks operate under one of the strictest environment, adding that liquidity ratio in Nigeria is 30 per cent, compared with 20 per cent in Kenya, 20 per cent in Rwanda and no minimum regulatory requirement in Ghana.

    There were proposals to increase the minimum liquidity ratio to 35 per cent for Systemically Important Banks, but that could be excluded from the final regulation set to kick in by 2015.

    It said Nigeria’s blended Cash Reserve Ratio (CRR) at 31 per cent, is almost three times that of Ghana, at 11 per cent, and six times those of Kenya and Rwanda, at 5.25 per cent and five per cent, respectively.

    The minimum CAR is 15 per cent for international banks (10 per cent for local banks), compared with 10 per cent in Ghana, 14.5 per cent in Kenya, and 15 per cent in Rwanda.

    “We expect the SIB rules in Nigeria to indicate a minimum CAR of 15 per cent for SIBs, with tier-2 capital capped at 25 per cent of total qualifying capital. Above the 15 per cent, SIBs will be required to maintain a one per cent capital buffer that comprises entirely of tier 1 capital, which will raise the minimum CAR for SIBs to 16 per cent. The first set of identified SIBs include: First Bank, Zenith, UBA, GTBank, Access, Ecobank Nigeria, Diamond and Skye Bank,” it said.

    The minimum capital requirement is $150 million for local banks and $310 million for international banks in Nigeria, compared with $15 million in Ghana and $11 million in Kenya.

    Basically, the lower end of the absolute minimum capital requirement for commercial banks in Nigeria is 10 times  more than the minimum for the next closest country, Ghana.

    According to RenCap, other regulatory constraints the Nigerian banks currently face include AMCON introduced a levy following its acquisition of non performing loans from the banks.

    In 2013, a reduction in commission on turnover was announced. This is a fee charged to retail banking clients on transactions, and the measure is very much oriented towards consumer protection.

    The permissible fee was initially reduced to 0.3 per cent of total monthly debit transactions, from the previous 0.5 per cent, with a timeline of reducing the cap further to 0.2 per cent in 2014 and 0.1 per cent in 2015, before finally abolishing it in 2016. The lower commission on turnover has had a negative impact on non-interest revenue across the sector.

    Also cutting banks’ earnings is the minimum interest rate on savings accounts is now pegged at 30 per cent of the Monetary Policy Rate even as the current minimum savings rate is 3.6 per cent.

    Capital requirements have been tightened ahead of the transition to Basel 2/3 by October 2014. This move introduced measures for the computation of operational and market risk, and the banks are mostly reporting a reduction in Capital Adequacy Ratio of 100-400 basis points. This compares against the 500-600 basis points in Kenya, which we think is due to the utilisation of some credit risk mitigants in capital computation by the Nigerian banks, unlike in Kenya.

  • Enterprise: Heritage plans bigger, innovative lender

    Enterprise: Heritage plans bigger, innovative lender

    Heritage Bank Limited has said that its acquisition of Enterprise Bank will produce a bigger and more innovative lender.

    Managing Director/Chief Executive, Heritage Bank Limited, Ifie Sekibo said this at the sidelines of the Investiture programme of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos.

    Recall that HBCL Investment Services Limited (HISL) promoted by Heritage Bank recently paid N56 billion to acquire Enterprise Bank from the Asset Management Corporation of Nigeria (AMCON).

    Commenting on the integration of the two banks, Sekibo said the acquisition will enable the bank become bigger and more innovative.

    Sekibo, who along with the Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele and two other bank chief executives were awarded Honorary Senior Members of CIBN, said that to achieve the above, the bank would focus more on training and would be guided by the standards and codes of the Institute.

    He said: “It is an honour that in so short a time the institute would award me Honourary Senior Membership.  This award would impact on our bank because we would be clear in our focus because the institute is the guiding institute that helps the industry set standards and educate on codes of conduct.  So this would lead to increased awareness of the standards within our institution and it would also enable us run our training programme in line with the institute. It also means there would be a lot of training which is why the institute is important for us. So we would have these training as one family not as two organisations. So look out for a much stronger and bigger organisation.”

    Similarly, Heritage Bank in a statement said that the combination of the two banks will produce a force to be reckoned with and a paradigm shift in the banking industry. The bank said, “We have always seen Enterprise Bank as one of the potential giants in Nigeria’s banking landscape. With a truly vast branch network, innovative and professional staff, solid assets and large customer base, Enterprise Bank is easily one of the preferred banks for value creation wherever you might be in the country.

     

     

    “The partnership process will seamlessly birth an entity that would be optimum of excellence and innovation. In less than two years, we have redefined the concept of banking and emerged as one of the fastest growing banks in Africa. Partnering with Enterprise Bank,  whose vision is in line with ours, will ensure we continue delivering distinctive financial services, building on our legacy of innovation while creating, preserving and transferring wealth across generations.”

  • AMCON’s interventions grow banks’ profits to N529b

    The banking sector recovery has seen profitability back to above pre-crisis levels, with profit of all banks listed on the Nigeria Stock Exchange (NSE) achieving a combined profit before tax (PBT) of N529 billion last year, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane has said.

    A bank is quoted if its shares can be bought or sold on the NSE. FDC Economic report obtained by The Nation, showed the lenders’ PBT were at N550 billion in 2012.

    These feat, Rewane said, were possible because the Asset Management Corporation of Nigeria (AMCON) strengthened the financial sector, especially the lenders, preventing the collapse of the banks. He said the coming of AMCON has also addressed the potential bank runs and the negative implications this would have had on the depositors.

    Local banks now export services outside the country, remain market leaders in the African banking sector.

    AMCON had last month, announced its operating results, with a loss of N635.88 billion last year – more than the fiscal budgets of seven states in Nigeria.

    It also revealed that it has run up a cumulative negative net-worth of N3.46 trillion since inception in 2010, about 69.7 per cent of the national budget.

    These numbers, Rewane said, will make any rational investor or orthodox analyst stagger and describe it as an unprecedented financial calamity.

    However, Managing Director, Afrinvest West Africa Plc, Ike Chioke said a review of Central Bank of Nigeria (CBN’s) last year’s balance sheet showed that the regulator is bugged down by AMCON bonds, intervention funds and development finance loans.

    He said these ‘unmarketable asset portfolios’ constitute over 40 per cent of the CBN’s balance sheet. He spoke at the launch of the Nigeria Banking Sector Report.

    Chioke explained that the assets are long term investments without a discernible exit time frame other than the eventual performance of the loan portfolio.

    He said: “Our review of the CBN’s balance sheet as at November 2013 raises crucial questions that require urgent attention.

    “The CBN’s proactive response to the 2008/2009 banking crisis was arguably the right move although this has, in itself, magnified CBN’s level of indebtedness. Over 40 per cent of CBN’s asset portfolio is unmarketable, comprising principally of AMCON bonds, intervention funds and development finance loans.”

  • Heritage hasn’t paid for Enterprise, says AMCON

    Heritage hasn’t paid for Enterprise, says AMCON

    The Asset Management Corporation of Nigeria (AMCON) yesterday said that HBCL Investment Services Limited (HISL), sponsored by Heritage Banking Company Limited to acquire Enterprise Bank Limited is yet to pay the outstanding cash for the deal. The payment deadline is today.

    AMCON Head of Communications and Strategy, Kayode Lambo spoke, following reports that the payment had been completed.

    Lambo, who spoke to The Nation on phone yesterday in Lagos, said the payment deadline, initially slated for October 13, is now today, following a two-day Sallah public holidays observed last week.

    “We have not seen their payment. Deadline is tomorrow (today) because of two-day public holidays,” he said.

    The firm has up till today to balance about N44.8 billion, representing 80 per cent of the N56 billion bid price.

    While the clock ticks for Heritage to pay up, Fidelity Bank Plc, the reserved bidder is patiently waiting to step in, should the payment arrangement fail.

    But Heritage Bank CEO, Ifie Sekibo assured stakeholders that the lender will beat the deadline.

    He told reporters at a joint news conference organised by Heritage and HBCL Investment Services Limited (HISL) in Lagos that plans are ongoing for the post-Enterprise Bank era, outlining strategies that would transform the new entity to a mega bank.

    He confirmed that the lender has already paid the 20 per cent or N11.2 billion of the N56 billion bid prices before the Share Purchase Agreement (SPA) was signed in Abuja last month.

    The Heritage Bank boss confirmed that the bank had already paid the initial 20 per cent of the total bid price for Enterprise Bank pointing out that efforts were already in place to ensure the payment of the final 80 per cent within the time frame stipulated by AMCON.

    He said the lender is already working on the process it believes, will finally culminate in the acquisition of Enterprise Bank Limited to further drive its time-proven potentials of creating, preserving and transferring wealth among its teeming customers.

    He said: “It was tough and challenging to face the institutions that competed. We consistently provided super information to AMCON and abided by the principles. HISL acted on our behalf. If HISL succeeds in having the combination, we will be disposed having a business combination and it will have Heritage brand,” he said.

     

  • Babalakin: Fed Govt owes Bi-Courtney N132b

    •‘We’re not indebted to AMCON’

    The Chairman of Bi-Courtney Ltd, Dr. Wale Babalakin (SAN), said yesterday that the Federal Government owes the company N132billion.

    He said Bi-Courtney was not owing the Asset Management Corporation of Nigeria (AMCON), rather, AMCON and its principal (Federal Government) were indebted to Bi-Courtney.

    At a news conference in  Lagos, Babalakin, through his law firm’s Head of Litigation, Mr. Tola Oshobi, said the Federal High Court sitting in Abuja, ordered the Federal Government, represented by the Attorney-General of the Federation, Mohammed Bello Adoke (SAN), to pay Bi-Courtney Ltd the money.

    A copy of the order, made by Justice G. Olotu on April 5, 2012 in a suit was made available to reporters.

    The judge directed the attorney-general to pay N132,540,580,304.00 to Bi-Courtney “being the sum due to be rendered and remitted to the applicant (Bi-Courtney).”

    The judge also directed Adoke “to compel” the affected government institutions and bodies to make the payment “without any further delay” to Bi-Courtney.

    Justice Olotu also made “an order directing the defendant/respondent, being the chief law officer and legal representative of the Federal Government to set off from the sum of N132,540,580,304.00, any claims agreed with the plaintiff/applicant to be due from the plaintiff/applicant to any agency of the Federal Government, including but not limited to AMCON.”

    Babalakin said AMCON’s assertion that Bi-Courtney was indebted to it is yet to be confirmed by any court.

    “Conversely, Bi-Courtney’s position that it is not indebted to AMCON and that it is AMCON and its principal that are indebted to it, is premised upon a judgment of the court and not merely on Bi-Courtney’s assertion.

    “AMCON is of course an agency and an integral part of the Federal Government. The judgment sum awarded to Bi-Courtney exceeds AMCON’s unconfirmed allegations,” he said.

    On how the N132billion debt arose, Babalakin said when the concession contract for the Murtala Muhammed Two Airport (MM2) was signed, it was agreed that the flights in and out of Lagos would be operated from MM2.

    He said banks financed the project based on the projection that a certain number of passengers would pass through MM2 yearly and would pay tax to enable Bi-Courtney recover its money.

    However, Babalakin said two major airlines – Virgin Nigeria and Arik Air – were allowed to operate from the General Aviation Terminal (GAT), contrary to the agreement, adding that the airlines controlled about 70 per cent of the passenger traffic.

    He said the money that should have accrued to Bi-Courtney from the two airlines’ operations was computed, and came to over N132billion as at 2012, which the court ordered Federal Government to pay.

    “By the time we do a different analysis from 2012 till now, it could be more,” Babalakin added.

    On AMCON’s claim that Babalakin signed an offer letter admitting to owing N50billion, the senior advocate said it was not a binding agreement.

    “The offer letter being bandied around by AMCON and its counsel has five conditions precedent…, all of which must be met before the agreement comes alive. The question AMCON needs to answer is which, if any, of these conditions precedent has been fulfilled?” Babalakin asked.

    The Federal High Court in Lagos nullified an order appointing a former Nigerian Bar Association (NBA) President Mr. Olisa Agbakoba (SAN) as the receiver/manager over the assets of Bi-Courtney, Chartered Investment Ltd, Resort International Ltd, Roygate Properties Ltd and their chairman Babalakin.

    Justice Ibrahim Buba held that the order by his colleague, Justice Okon Abang, was made in error as AMCON and Agbakoba did not state the facts to him.

    Dissatisfied, AMCON and Agbakoba filed a notice of appeal at the Court of Appeal sitting in Lagos, urging it to nullify Justice Buba’s ruling and uphold Justice Abang’s order.

    AMCON also filed a motion at the Federal High Court seeking an order restraining Bi-Courtney and Babalakin from executing Justice Buba’s ruling.

    In the application with notice for injunction pending appeal, AMCON is seeking an order of injunction restraining the respondents, their agents or subsidiaries “from giving effect to the order” and from “dissipating” the companies’ assets to forestall foisting a fait accompli on the appellate court.

    The actions are yet to be heard, while Bi-Courtney and others have not responded to them.

  • FG owes Bi-Courtney N132b – Babalakin

    FG owes Bi-Courtney N132b – Babalakin

    The Chairman of Bi-Courtney Limited, Dr. Wale Babalakin (SAN), on Tuesday said the Federal Government owes the company N132billion.

    He said the company is not indebted to the Asset Management Corporation of Nigeria (AMCON), rather, AMCON and its principal (Federal Government) owe it.

    Babalakin while speaking through his law firm’s head of litigation, Mr. Tola Oshobi, at a news conference in his Lagos, said the Federal High Court sitting Abuja ordered the Federal Government, represented by the Attorney-General of the Federation, Mohammed Bello Adoke (SAN), to pay Bi-Courtney the sum.

    A copy of the order, made by Justice G. Olotu on April 5, 2012 in a suit numbered FHC/ABJ/CS/50/09, was made available to reporters.

    The judge had directed the AGF to pay N132, 540,580,304.00 to Bi-Courtney “being the sum due to be rendered and remitted to the applicant (Bi-Courtney).”

    The judge also directed Adoke “to mandatorily compel” the affected government institutions and bodies to make the payment “without any further delay” to Bi-Courtney.

    “Justice Olotu also made “am order directing the defendant/respondent, being the Chief Law Officer and legal representative of the government to set off from the above mentioned sum of N132, 540,580,304.00 on any claims agreed with the plaintiff/applicant to be due from the plaintiff/applicant to any agency of the Federal Government of Nigeria, including but not limited to the Asset Management Corporation of Nigeria (AMCON),” the court order stated.

    Babalakin said AMCON’s assertion that Bi-Courtney is indebted to it is yet to be confirmed by any court.

    “Conversely, Bi-Courtney’s position that it is not indebted to AMCON and that it is AMCON and its principal that are indebted to it, is premised upon a judgment of the court and not merely on Bi-Courtney’s assertion.

    “AMCON is of course an agency and integral part of the Federal Government of Nigeria. The judgment sum awarded to Bi-Courtney clearly exceeds AMCON’s unconfirmed allegations,” he said.

     

  • Skye Bank gets nod to acquire Mainstreet Bank

    Skye Bank gets nod to acquire Mainstreet Bank

    The Asset Management Corporation of Nigeria (AMCON) yesterday announced Skye Bank Plc as preferred bidder for the acquisition of entire issued and fully paid up ordinary shares of Mainstreet Bank Limited.

    The AMCON Head, Corporate Communications Strategy & Research, Kayode Lambo who disclosed this in a statement, said that Cedar One Investment Partners Limited emerged as the first reserve bidder while Fidelity Bank Plc was named the second reserve bidder.

    The announcement, he said, followed the receipt of approval of the Board of Directors of AMCON.

    However, Lambo said the completion of the transaction is subject to the fulfillment of the conditions precedent as stated in the Share Sale and Purchase Agreement (SPA) to be executed with Skye Bank Plc, as well as the receipt of all required regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission.

    He explained that in the event that Skye Bank is unable to complete the transaction in line with the payment terms and other provisions of the SPA, the SPA entered into with Skye Bank would be terminated and Cedar would become the preferred bidder.

    Likewise, should Cedar fail to complete the transaction in line with the payment terms and other provisions of the SPA, Fidelity Bank would become the preferred bidder.

    According to the AMCON Spokesman, the Mainstreet Bank sale process started with interest shown by 25 parties cutting across local and international investors.

    The emergence of Skye Bank, Cedar and Fidelity Bank as preferred, first and second  reserve bidders, respectively, he said, resulted from a rigorous and competitive bidding process, coordinated for AMCON by Barclays Africa Group Limited and Afrinvest West Africa Limited (Financial Advisers) and Banwo & Ighodalo (Legal Advisers).

    Mainstreet Bank Limited commenced operation in August, 2011, as a full-service commercial bank with a national banking license. The bank is one of the bridged banks wholly owned by AMCON.

    Mainstreet Bank has nine subsidiaries and a distribution network comprised of 201 branches across 35 out of 36 states in Nigeria and the Federal Capital Territory, Abuja. It equally has nine cash centres and 200 Automated Teller Machines (ATMs).

    Other bridged banks owned by the corporation are Keystone Bank Limited and Enterprise Bank Limited. Mainstreet Bank was created from the ashes of the defunct Afribank Plc, while Keystone Bank and Enterprise Bank were created from the defunct Bank PHB Plc and Spring Bank Plc respectively.

    The AMCON had acquired the three lenders in August 2011, after the intervention by the Nigeria Deposit Insurance Corporation (NDIC) and the CBN.