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  • Don’t abandon farms for politics, Umahi advises

    Governor David Umahi of Ebonyi has advised the people not to abandon their farm work and other agricultural ventures because of the general elections.

    Umahi gave the advice on Thursday in Abakiliki, at the launch of the 2019 farming season in the state.

    The event was attended by rice and cassava farmers, traditional rulers and beneficiaries of government’s empowerment schemes, among other stakeholders.

    He said that government had enough funds to assist farmers during the farming season.

    He said: “We have funds from the Central Bank of Nigeria (CBN) and Federal Government so farmers should register with the state ministry of agriculture and natural resources to be able to access the loans.

    “You only need to tell us how much fund, fertilizer and herbicides you want and how you intend to pay back because we will not profile farmers this farming season.”

    He said that government would only verify the farmlands to be used for cultivation but will not provide rice seedlings to farmers this year.

    Read Also : Ebonyi APC candidates: we will challenge results

    “Our own people, including workers and government officials, dealt with us last farming season and when we are eating our future, we do not know.

    “You pay high amount of money for rice seedlings and they (officials) would get the seedlings through the farmers and supply them to us.

    “We are therefore not procuring rice seedlings for anybody again,” the governor said, adding that farmers should produce their own seedling or go to Benue to buy.

    “My father was a farmer all through his life, trained all his children to the university level but never sought for government’s rice seedlings,” he said.

    He further advised civil servants, who had yet to access the N4 billion agricultural loan for farmers, to register.

    He, however, warned that the facility would not be treated like the issue of gratuity.

    “The records of the gratuities paid by the past administrations in the state were burnt. “Otherwise, the 40 per cent payment we made could have been used to pay all the civil servants,” Umahi said.

    The governor, who is seeking re-election on the platform of the Peoples Democratic Party, appealed to the traditional rulers to persuade their subjects to vote for him on March 9.

    He said that voting massively for him in the election would demonstrate the people’s appreciation of all that God had used him to do for the state.

    “The turnout of voters on February 23 was poor. You should persuade our people to vote for us instead of voting on the basis of clanishness,” he said.

    Speaking on behalf of the traditional rulers, Eze Charles Mkpuma, the Chairman of the state Traditional Rulers Council, admitted that votes were cast on clanish consideration.

    “We shall, however, guard against such attitude on March 9. We shall use the election to reward you for the rapid transformation witnessed in the state under your watch,” Mkpuma said.

    News Agency of Nigeria (NAN) reports that representatives of the farmers and town unions and beneficiaries of the governor’s empowerment schemes took turn to assure him of their unflinching support.

  • CBN boosts market with $210m

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into the inter-bank Foreign Exchange Market.

    Figures obtained from the CBN  indicated that authorised dealers in the wholesale segment of the market were offered the sum of $100 million, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million. Similarly, customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    Read also: This ‘Verdict 2019’sef

    Confirming the figures, the Bank’s Director, Corporate Communications Department, Isaac Okorafor reiterated the CBN’s commitment to continue to boost interbank foreign exchange market to ensure liquidity in the market.

    It will be recalled that on Friday, February 22, 2019, the Bank injected the sum of $268.4 million and CNY46.3 million into the Retail Secondary Market Intervention Sales (SMIS) segment.

    Meanwhile, the Naira on Tuesday, February 26, 2019 exchanged at an average of N360/$1 in the BDC segment of the market.

     

  • CBN confirms licences of 898 Microfinance Banks

    The Central Bank of Nigeria (CBN) has confirmed the licenses and operation of 898 Microfinance Banks (MfBs) spread across the 36 states of the Federation and Federal capital Territory, Abuja.

    The number is far less than the 1,028 MfBs confirmed by the apex bank in May last year after the regulator withdrew operating licenses of some operators late last year.

    The report on approval, posted on CBN website, also showed that the apex bank confirmed the operations of two regional banks, and three banks with Holding Company structures, five merchant banks, one non-interest bank and 19 commercial banks, as at last year.

    As part of efforts to enable speedy disbursement of its several intervention funds including the Agribusiness/Small and Medium Enterprises Investment Scheme (AGSMEIS), the CBN has said it will in collaboration with the Bankers’ Committee and the Nigerian Postal Service (NIPOST) start the operation of a National Micro Finance Bank (MFB) this year.

    The new MFBs are expected to further enhance financial inclusion and credit to fund the agricultural sector and small and medium scale (SME).

    The national MFB would leverage on the existing NIPOST presence in 774 local and aid the CBN and the bankers committee effort in accessing the Anchor borrowers fund, SME fund and other initiatives tailored towards SMEs, farmers and the CBN’s financial inclusion drive.

  • CBN directs banks to cut appetite for govt’s securities, oil assets

    The Central Bank of Nigeria (CBN) yesterday directed commercial banks to moderate their appetite for investing in government securities and oil and gas assets.

    Government securities include Federal Government of Nigeria (FGN) Bonds and Treasury Bills (TB).

    Its  Deputy Governor, Edward Lametek, who spoke at the last Monetary Policy Committee (MPC) meeting released by the apex bank, said moderating demand for government securities and oil assets  assist the lenders to rebalance their portfolios.

    According to him, banks also needed to lend more to the economy for sustained economic growth.

    He said the CBN’s  interventions in agriculture have clearly shown the immense prospects with properly directed credit.

    He said: “Deposit Money Banks (DMBs) need to step up credit delivery to the growth poles – agriculture, manufacturing and services. The last couple of months have witnessed a sustained improvement in banking sector resilience – industry capital adequacy and liquidity ratios have grown, while the non-performing loans (NPLs) ratio is on the decline.

    “This should translate to improved intermediation to be relevant. While monetary policy has to accommodate the need to sustain current improvements in banking industry Financial Soundness Indicators (FSIs), the DMBs would need to moderate their appetite for government securities and oil & gas assets in order to gradually re-balance their asset portfolios.”

    He said developments in the inter-bank market somehow suggest that the sterilisation actions of the bank have remained very effective in reining-in excess liquidity.

    Lametek said it is important that such actions should continue to be a component of monetary management in this year as liquidity threats do not appear to be abating any time soon. Keeping domestic liquidity in check is important not only for inflation, but also for the stability of the naira exchange rate.

    “Overall, my assessment is that risks to inflation have remained tepid notwithstanding the year-on-year increase in headline inflation in December 2018. This could change depending on the short to medium-term evolution of fiscal policy. Given elections in February and March, the fiscal outlook should become clearer as from April 2019,” he said.

    According to him, the outlook for economic growth is a bit dicey concerning given the indications from the oil sector (especially the volatility in crude prices) and sluggish consumption demand.

    “I view the balance of risks to economic growth tilting to the downside, which suggests that there is a more urgent need to support growth or in the minimum delay any policy action that might further tighten credit conditions. It is important to stress nonetheless that a supportive monetary policy orientation alone will not be sufficient to lift economic growth to the historical levels of 5-6 per cent. Other policies of government, particularly fiscal and sector policies have to be in the same mode,” he said.

    Also, a member of the MPC, Adenikinju Festus, said with respect to the banking and financial system, there is positive trend in all financial system indicators (FSI) between November last year and January this year.

    He said the NPLs ratio continues its downward trend, capital adequacy ratio of the banking sector improved three consecutive months, liquidity ratio inched northward, aggregate assets and deposits of the banking sector also rose over the same period.

    However, the monetary authority should not lower its guard and must continue to monitor the banks and implement policies to consolidate and further improve the FSI.

    “Aggregate credit expansion to the real economy continues to pose serious challenges. Net credit growth to the private sector is lower than provisional benchmark for 2018. The high-interest rate spread and the high lending rates are challenges that require new and innovative approaches,” he said.

    According to him, the proposed National Microfinance Bank, strengthening of existing Micro Finance Banks, and other initiatives by the CBN to promote financial inclusion, access to credit by those in the rural areas, semi/urban and even the poor areas in the cities across the country at affordable interest rates would boost real sector activities at the Micro Small and Medium Enterprises (MSMEs) level.

  • Forex: CBN boosts market with $210m

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into the inter-bank foreign exchange market. The forex intervention is in line with the regulator’s determination to boost forex supply in the market.

    Figures released by the bank, indicated that it offered the total sum of $100 million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, also received $55 million.

    The Director, Corporate Communications at the Bank, Isaac Okorafor, said the CBN was very pleased with the stability of the Forex market, adding that the Bank will continue to intervene in order to ensure the liquidity in the market. According to him, having virtually achieved the objective of rates convergence, the Bank was committed to sustaining the gains recorded in the foreign exchange market.

    Speaking further, Okorafor expressed optimism that the naira will sustain its run against the dollar and other major currencies around the world, considering the level of transparency in the market.

    Meanwhile, the naira continued to maintain its stability in the forex market, exchanging at an average of N356/$1 in the BDC segment of the market.

     

     

  • Unity Bank wins CBN Development Finance Award

    Unity Bank Plc has received the ‘2018 Best Participating Bank in the Central Bank of Nigeria’s Development Finance activities award’ in Jigawa State, Northwest, Nigeria.

    The recognition came at the Dutse Bankers Forum organised by the CBN bringing together financial stakeholders in Jigawa State including CBN, Representative of Chartered Institute of Bankers (CIBN) North West Zone, NIRSAL, 16 Commercial Banks in Jigawa State, the Controller of Prison Service, Jigawa State and Turaki of Dutse who represented the Emir of Dutse.

    Receiving the award, the Unity Bank’s Regional Manager, Dutse, Mr. Mustapha Idris Baba, commended the CBN for the recognition accorded the bank which is “testament to the bank’s growing franchise as a retail bank of choice as well as its deep rooted financial inclusion strategy in Jigawa State’’.

    Coming barely two months after the bank won two highly coveted award; namely, the Central Bank of Nigeria (CBN) 2018 sustainable banking award for ‘Sustainable Transaction of the Year in Agriculture’ and Presidential Award in recognition of the Bank’s participation under the Anchor Borrowers Programme, this award confirms the rising profile of Unity Bank Plc as a leader in Agricultural financing.

    Commenting on the development and other exceptional achievements recorded by the Bank in the recent past, the Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Tomi Somefun, said the awards are strong indications of the success of Unity bank’s business model which underpins the resilience, endurance, robustness and viability of the brand to sustainably deliver exceptional financial services to individuals, groups, and organisations across segments.

    According to her, “the bank is committed to financial inclusion by deploying technological edge to enhance electronic convenience for all its customers”. The Governor of Jigawa State, Mohammad Badaru Abubakar, represented by the state’s Accountant General, Alhaji Haruna Ahmed-Amin, while commending Unity Bank for its focus in driving financial inclusion in the state, used the occasion to call on all banks operating in the state to come up with tangible offers for their teeming customers by developing financial services products that will enable them penetrate the rural population and the farmers, thereby reducing dependence on public sector deposits.

    At the Annual Dutse Bankers Forum, Unity Bank was also recognised for emerging winner of the 2018 Dutse Bankers Forum football competition held as part of the activities marking the event.

  • Reduce cash reserve ratio, industrialists, others urge CBN

    Some industrialists, manufacturers and farmers have urged the Central Bank of Nigeria (CBN) to reduce the Cash Reserve Ratio (CRR) in order to free up more funds for banks to provide credit to the real sector.

    The CRR is a certain percentage of the total bank deposits that has to be kept in the vault of the CBN, and banks do not have access to that amount for any economic activity.

    Some industrialists and manufacturers, who spoke with The Nation, said the call for a reduction of the CRR became necessary because of the ability of banks to extend credit to businesses had been stifled, having exceeded the 80 per cent loan-to-deposit regulatory threshold.

    For instance, one of the industrialists, Mr. Chief Remi Oladunjoye, observed that at the high prevailing interest rate, access to loan to the industrial sector had remained subdued due to attractive risk-free lending to government to fund its budget deficit.

    Oladunjoye recommended a downward review of the CRR to enable deposit money banks to increase credit facility to the real sector.

    “While this is imperative at this time, the apex bank must first raise its regulatory or oversight efficiency to forestall systemic risk that could be necessitated by high non-performing loan and poor capital adequacy ratio,” Oladunjoye said.

    According to him, inflationary pressure poses greater threat to businesses, adding that the current high inflation rate though decelerating was structurally induced.

    In view of this, he said fiscal instruments to improve business conditions and critical infrastructure such as roads, rail and power are needed to stimulate investment in the near to medium term.

    Oladunjoye explained that Nigeria’s efforts towards economic diversification through the manufacturing and agricultural sectors have consistently suffered setbacks because of grossly inadequate financing structures that have discouraged manufacturers and farmers

    “An estimated 500 million smallholder farming households, representing 2.5 billion people worldwide, rely on agricultural production for their livelihoods, and financial inclusion has been the most difficult challenge of this group.

    “Realising the agric financial challenges, international organisations, foundations and individuals have channelled more resources especially to resource-poor farmers in developing countries. However, agricultural financial inclusion in Nigeria appears elusive,” he said.

    Also, a live stock farmer in Ikorodu area of Lagos State, Mr. Felix Johnson, expressed concerns over lack of access to agricultural loan facilities from financial institutions. He noted that impossible conditions of the loans have made it extremely difficult for farmers to access them.

    “Although, the Federal Government is doing everything possible to empower farmers and the small scale industry, the bureaucracy is a big problem, and interest rate on industrial loan is very high,” Johnson said.

    He also lamented that the nine per cent interest rate obtainable from CBN loans was too high for Nigerian farmers. “If the government is serious, the rate should not be more than five per cent, because if one operates in Nigeria, he has to generate power plus other costs, he added.

    But a financial expert, Mr. Adams Ayodele, said in a bid to enhance access to finance, the First Bank of Nigeria Limited and Access Bank Plc have committed N10 billion to be lent to firms that have good credit ratings.

     

  • INEC engages EFCC, FIU, CBN, others to track campaign finance

    ANTI-GRAFT agencies, financial institutions and other agengies have been urged by the Independent National Electoral Commission (INEC) to assist in tracking campaign finances of political parties and their candidates.

    The agencies are: Economic and Financial Crimes Commission (EFCC), Financial Intelligence Unit (FIU), Central Bank of Nigeria (CBN), National Broadcasting Commission (NBC), Nigeria Communication Commission (NCC) Centre for Social Justice (CSJ), the Police and four other organisations.

    Eze Onyekpere of the CSJ has been named to coordinate the committee of monitors.

    The committee is expected to submit its report after six months.

    A National Commissioner, Prof. Antonia Okosi-Simbine inaugurated the committee on behalf of the chairman of the commission.

    The 10-member group is to monitor the spendiñg of all the candidates and political parties spending to ensure they don’t exceed the approved sealing.

    Nigerians are expected to go to polls on February 16 for the presidential and National Assembly seats and March 2 for the state elections.

    The tracking for campaign financing is expected to end on Saturday after the presidential and National Assembly polls. The curtain will drop on the state elections after the governorship and House of Assembly polls on March 2.

    INEC had said that it will be monitoring the ongoing campaign by various political parties and candidates closely ahead of the 2019 general elections.

    The campaign for the 2019 Presidential election officially commenced on November 13, 2018, as provided for by the Electoral Act.

    The commission is empowered by Section 90 of Electoral Act, 2010 as amended to place a peg on campaign expenses.

    Election expenses are incurred by political parties and their candidates within the period from the date notice is given by the commission to conduct an election.

    Section 91 of the Electoral Act stipulates a maximum of N1 billion for presidential candidate. The governorship candidate cannot spend more than N200 million for campaign.

    The maximum amount allowed for Senate and House of Representatives is N40 million and N20 million respectively.

    The Act does not allow individual or entity to donate more than N1 million to any candidate.

    The Act states: “A political party that incurs election expenses beyond the limit as stipulated in this Act commits an offence and is liable on conviction to a maximum fine of N1,000,000.00 and a forfeiture to the commission of the amount by which the expenses exceed the limit set by the commission. The Electoral Act 2010 as amended also stipulated N1, 000,000,000.00 fine or imprisonment for a term of 12 months or both as punishment for any individual that contravene the Act for the presidential and N600,000 for the senatorial election while, House of Representatives N500,000 or imprisonment N500,000.00For the governorship, it is N800,000.00 or imprisonment of nine months or both.”

    The commission had in the past confronted by some challenges which had hindered its work. However, the commission said it was ready to wield the big stick on any party or candidate that contravenes the law.

    Speaking during the inauguration of the inter-agency campaign finance monitoring group yesterday, INEC National Commissioner, Prof. Anthonia Okosi – Simbina, said the report of the 2019 campaign finances will be release immediately after the election.

    She said: “We will check newspapers avert, TV, Radio, billboard and we must see to the conclusion. Those who spent beyond what the legal frame work provided for or spent outrageously will have themselves to blame.

    “Vote buying must be monitored too. And those reports must be published after the election. Unlike what happened in the past, six months will be late for the report. We will ensure compliance to the electoral act.”

    She said all the 10 groups engaged for the tracking of the campaign finances will be working with the electoral finance and party monitoring department of INEC.

    Also speaking, the Assistant Director, Campaign Finance Tracking Unit, Ishaq Garba Aliyu, said they recorded milestone in the 2015 campaign finance tracking, adding that they won’t leave chances in the 2019 election campaigns.

    “We have built the capacity of the staff. They review the tracking forms to include separate forms for candidates and political parties. The tracking ends on the day of election,”Aliyu said.

  • Court warns CBN, NCC on Etisalat

    Federal High Court in Abuja has warned the Central Bank of Nigeria (CBN), the Nigerian Telecommunication Commission (NCC) and others involved in the transaction for the sale of troubled telecom firm Etisalat (9mobile) against taking further steps to conclude the sale.

    The warning was informed by the claim by some aggrieved investors that despite a subsisting order of the court, made on October 10, last year, by Justice Binta Nyako, barring parties to the transaction from taking further steps pending the determination of the suit, the CBN, First Bank and others have allegedly sold the firm and transferred its ownership.

    The warning by the court is contained in a Form 48 issued by the court’s Registrar, on institutions listed as defendants in the suit marked: FHC/ABJ/CS/288/2018 filed by the aggrieved shareholders, through Afdin Ventures Ltd and Dirbia Nigeria Ltd.

    The Form 48 reads: “Take notice that unless you obey the directions contained in the order of the Federal High Court number three, Abuja, made on the 10th of October 2018 ordering parties to maintain status quo, with regard to the sale of Etisalat Nigeria Limited (rebranded 9mobile), you will be guilty of contempt of court and will be liable to be committed to prison.”

    The affected defendants are Karington Telecommunications Ltd, Premium Telecommunications Holding NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd (trading under the name and style of 9mobile) and the Nigerian Communication Commission.

    The aggrieved subscribers, who claimed to be major investors in Etisalat, said they were excluded from the firm’s decision making and therefore want a refund of their investment estimated at $43,330,950.

    Afdin and Dirbia, in newly filed court documents, alleged that the defendants have not only sold the company, despite the existing restraining order, they have effected a transfer of ownership to a new set of buyers.

    They exhibited newspaper publications, indicating that the defendants have allegedly proceeded with the sale in breach of the pending court order.

    The aggrieved shareholders, in a pre-action notice issued by their lawyer, Mahmud Magaji (SAN), are threatening to institute fresh suits against the CBN, NCC and First Bank in an effort to retrieve their investment and accrued interest.

    The pre-action notice, copies of which were sighted in Abuja, were addressed to the CBN Governor and NCC Executive Vice Chairman/Chief Executive Officer.

    Part of the notice reads: “The intending plaintiffs, who are shareholders in Etisalat Nigeria Ltd, having purchased a total number of 1, 300,391 at $13,003,910 only and 3,300,004 Class A shares at $30,030,040) intend to sue for the recovery of their investment, dividends on their shores, and damages for breach of contract.

    “Please kindly recall that, by the custodian agreement, all the shares certificates of the plaintiffs were kept under your custody.

    “However, you have failed to exercise your role in good faith leading to the sale of Etisalat Nigeria Limited to Teleology Nigeria Ltd, at the detriment of our clients.

    “The intending plaintiffs aver that First Bank of Nigeria Plc was both a receiving bank and also a custodian of the shares acquired by the intending plaintiffs from Karington Telecommunications Ltd.

    “The intending plaintiffs aver that, under the private placement memorandum (PPM), First Bank of Nigeria Plc, as custodian of the intending plaintiffs’ shares in Karington Telecommunications Ltd, has the obligation to ensure that the shares held by the intending plaintiffs, as beneficial owner, has the duty of custody, safekeeping, warehousing and preservation of the property (shares) of the intending plaintiffs, amongst others.

    “First Bank, in allowing the shares of Emerging Markets Telecommunications Services Ltd (EMTS) to be so charged as security for the syndicated loan by fixed charge, failed to keep the shares of the intending plaintiffs separate and/or segregated, but has allowed the intending plaintiffs’ shares to be co-mingled with the shares of other investors and thereby failed In its custodial duties in clause 5.1.2 at page 71 of the PPM.

    “First Bank also failed to observe and perform its warranty that it shall ensure the observance and performance of its custodial duties in the private placement memorandum (PPM) and also as contained in the application form.

    “The intending plaintiffs have suffered the liability of the complete loss of their investment in the shares of Karington Telecommunication Ltd and indirect economic interest in the shares of EMTS which are to be sold to recover the unpaid syndicated loan from the thirteen banks, of which First Bank of Nigeria PIc is a part.

    “The intending plaintiffs also never received any dividend payment since 2009; have completely lost their investment or indirect holding/economic interest in the shares of EMTS, which First Bank of Nigeria allowed to be used as a fixed charge to secure the repayment of the loan by the syndicated banks to EMTS and which loan has remained unpaid and the security is being enforced.”

  • $43m debt: Court warns CBN, NCC, others against concluding Etisalat’s sale

    A Federal High Court in Abuja has warned the Central Bank of Nigeria (CBN), the Nigerian Telecommunication Commission (NCC) and others involved in the transaction for the sale of troubled telecom firm, Etisalat (9mobile) against taking further steps to conclude the sale.

    The warning was informed by claim by some aggrieved investors that despite a subsisting order of the court, made on October 10, 2018 by Justice Binta Nyako, barring parties to the transaction from taking further steps pending the determination of the suit, the CBN, First Bank and others have allegedly sold the firm and transferred its ownership.

    The warning by the court is contained in a Form 48 issued by the court’s Registrar, on institutions listed as defendants in the suit marked: FHC/ABJ/CS/288/2018 filed by the aggrieved shareholders, through Afdin Ventures Ltd and Dirbia Nigeria Ltd.

    The Form 48 reads: “Take notice that unless you obey the directions contained in the order of the Federal High Court number three, Abuja, made on the 10th of October 2018 ordering parties to maintain status quo, with regard to the sale of Etisalat Nigeria Limited (rebranded 9mobile), you will be guilty of contempt of court and will be liable to be committed to prison.”

    The affected defendants are Karington Telecommunications Ltd, Premium Telecommunications Holding NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd (trading under the name and style of 9mobile) and the Nigerian Communication Commission.

    The aggrieved subscribers, who claimed to be major investors in Etisalat, said they were excluded from the firm’s decision making and therefore want a refund of their investment estimated at $43,330,950.

    Afdin and Dirbia, in newly filed court documents, alleged that the defendants have not only sold the company, despite the existing restraining order, they have effected a transfer of ownership to a new set of buyers. They exhibited newspaper publications, indicating that the defendants have allegedly proceeded with the sale in breach of the pending  court order.

    The aggrieved shareholders, in a pre-action notice issued by their lawyer, Mahmud Magaji (SAN), are threatening to institute fresh suits against the CBN, NCC and First Bank in an effort to retrieve their investment and accrued interest.

    The pre-action notice, copies of which were sighted in Abuja, are addressed to the Governor of CBN and The Executive Vice Chairman/Chief Executive Officer, NCC.

    Part of the notice reads: “The intending plaintiffs, who are shareholders in Etisalat Nigeria Ltd, having purchased a total  number of 1, 300,391 at $13,003,910 only and 3,300,004 Class A shares at $30,030,040) intend to sue for the recovery of their investment, dividends on their shores, and damages for breach of contract.

    “Please kindly recall that, by the custodian agreement, all the shares certificates of the plaintiffs, were kept under your custody. However, you have failed to exercise your role in good faith leading to the sale of Etisalat Nigeria Limited to Teleology Nigeria Ltd, at the detriment of our clients.

    The intending plaintiffs aver that First Bank of Nigeria Plc was both a receiving bank and also a custodian of the shares acquired by the intending plaintiffs from Karington Telecommunications Ltd.

    “The intending plaintiffs aver that, under the private placement memorandum (PPM), First Bank of Nigeria Plc, as custodian of the intending plaintiffs’ shares in Karington Telecommunications Ltd, has the obligation to ensure that the shares held by the intending plaintiffs, as beneficial owner, has the duty of custody, safekeeping, warehousing and preservation of the property (shares) of the intending plaintiffs, amongst others

    “First Bank, in allowing the shares of Emerging Markets Telecommunications Services Ltd (EMTS) to be so charged as security for the syndicated loan by fixed charge, failed to keep the shares of the intending plaintiffs separate and/or segregated, but has allowed the intending plaintiffs’ shares to be co-mingled with the shares of other investors and thereby failed In its custodial duties in clause 5.1.2 at page 71 of the PPM

    “First Bank also failed to observe and perform its warranty that it shall ensure the observance and performance of its custodial duties in the private placement memorandum (PPM) and also as contained in the application form.

    “The intending plaintiffs have suffered the liability of the complete loss of their investment in the shares of Karington Telecommunication Ltd and indirect economic interest in the shares of EMTS which are to be sold to recover the unpaid syndicated loan from the thirteen banks, of which First Bank of Nigeria PIc is a part.

    The intending plaintiffs also never received any dividend payment since 2009; have completely lost their investment or indirect holding/economic interest in the shares of EMTS, which First Bank of Nigeria allowed to be used as a fixed charge to secure the repayment of the loan by the syndicated banks to EMTS and which loan has remained unpaid and the security is being enforced.