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  • Court stays proceedings in Honeywell’s suit against Ecobank

    THE Federal High Court in Lagos has suspended the hearing of a N5.5 billion debt case between Honeywell Flour Mills Plc, its sister companies and Ecobank Nigeria Limited.

    The companies are praying the court to hold that they were not indebted to Ecobank.

    Justice Mohammed Idris adjourned pending the determination of an interlocutory appeal filed by Ecobank.

    The bank appealed against the judge’s refusal to recuse himself from the case. Ecobank had accused the judge of bias.

    When the case came up for continuation of defence, the bank’s lawyer, Mr. Divine Agbua, told the judge that the Court of Appeal directed him to suspend further hearing.

    He said: “The appeal filed by the defendant came up for hearing at the Court of Appeal. Judgment was reserved. They made a directive to await their decision.

    “May I apply that this case be adjourned sine dine (indefinitely). We shall notify your lordship upon delivery of judgment by the Court of Appeal.”

    Plaintiffs’ counsel Olabode Olanipekun confirmed that the Court of Appeal directed that the case be halted “out of respect for the hierarchy of courts”.

    “My application would be for the court to adjourn, not sine dine, but till a further date for us to report the outcome of the appeal,” he said.

    Ruling, Justice Idris said he would comply with the appellate court’s directive.

    He held: “I have listened to learned counsel. I have read the orders of the Court of Appeal. It is clear that the Court of Appeal had directed this court to await its judgment on this matter out of respect for the hierarchy of courts.

    “As a trial court, subordinate to the Court of Appeal, this court shall abide by the orders made by the Learned Law Lords of the Court of Appeal. This court shall, therefore, await the judgment of the Court of Appeal in this matter before further proceedings are continued herein.

    “In the circumstances, further proceedings in this matter are hereby adjourned pending the determination of the appeal. Either party shall be at liberty to apply for a hearing at the conclusion or the delivery of judgment by the Learned Law Lords of the Court of Appeal. This shall be the decision of the court,” the judge ruled.

    Ecobank had asked Justice Idris to recuse himself because it no longer had confidence in the judge to do justice in the case.

    But, the judge had refused the application, saying he would stick to his judicial oath in determining the case.

    He had ruled: “It is always tempting for a judge against whom criticisms are made to say he would prefer not to hear further proceedings in which the critic is involved.

    “But it is important for a judge to resist the temptation to recuse himself simply because it’ll be comfortable to do so.

    “The danger is that we’ll soon reach a position in which litigants were able to select judges to hear their cases simply by criticising all the judges that they do not want to hear their cases, whether the criticism is justified or not.

    “These issues are either for the appellate court or appealable issues and the defendant can exercise the right of appeal if it so desires. The application for the judge to recuse himself from this matter is most frivolous and it is refused,” he said.

    Ecobank subsequently appealed against the ruling by the judge.

    While Ecobank is claiming that Honeywell Group was indebted to it to the tune of N5.5 billion, out of which N3.5 billion had been paid, the plaintiffs’ are contending that they had repaid the debt in full.

    Honeywell Group chairman Dr. Oba Otudeko told the court that his companies owed Ecobank individually, but that the debt had been repaid.

    In his witness statement on oath, the business mogul said the firms jointly negotiated with the bank on the repayment terms.

    Otudeko said: “The plaintiffs were individual customers of the defendant and had personal outstanding exposures to the defendant.

    “In view of the fact that Honeywell Group Limited is the parent company of the plaintiffs, the plaintiffs under the auspices of the Honeywell Group, led by me, opened up negotiations to settle the then outstanding indebtedness of the plaintiffs to the defendant.”

    Otudeko maintained that his companies had paid N3.5 billion as of December 12, 2013 as the full and final payment for the N5.5 billion debt as agreed by the parties at a July 22, 2013 meeting.

    But the bank said the group did not repay the debt in line with an agreement that the payment must be made before Central Bank of Nigeria (CBN) examiners left the bank.

    The bank, therefore, refused to remove Honeywell Group’s name from its debtors’ list. It also threatened to publish Honeywell’s name as a chronic debtor.

  • Court stays proceedings in Honeywell’s suit against Ecobank

    The Federal High Court in Lagos has suspended the hearing of a N5.5billion debt case between Honeywell Flour Mills Plc, its sister companies and Ecobank Nigeria Limited.

    The companies are praying the court to hold that they are not indebted to Ecobank.

    Justice Mohammed Idris adjourned pending the determination of an interlocutory appeal filed by Ecobank.

    The bank appealed against the judge’s refusal to recuse himself from the case.

    When the case came up for continuation of defence, the bank’s lawyer, Mr Divine Agbua, told the judge that the Court of Appeal directed him to suspend further hearing.

    He said: “The appeal filed by the defendant came up for hearing at the Court of Appeal. Judgment was reserved. They made a directive to await their decision. May I apply that this case be adjourned sine dine (indefinitely). We shall notify your lordship upon delivery of judgment by the Court of Appeal.”

    Plaintiffs’ counsel Olabode Olanipekun confirmed that the Court of Appeal directed that the case be halted “out of respect for the hierarchy of courts.”

    “My application would be for the court to adjourn, not sine dine, but till a further date for us to report the outcome of the appeal,” he said.

    Ruling, Justice Idris said he would comply with the appellate court’s directive.

    He held: “I have listened to learned counsel. I have read the orders of the Court of Appeal. It is clear that the Court of Appeal had directed this court to await its judgment on this matter out of respect for the hierarchy of courts.

    “As a trial court, subordinate to the Court of Appeal, this court shall abide by the orders made by the Learned Law Lords of the Court of Appeal. This court shall, therefore, await the judgment of the Court of Appeal in this matter before further proceedings are continued herein.

    “In the circumstances, further proceedings in this matter are hereby adjourned pending the determination of the appeal. Either party shall be at liberty to apply for a hearing at the conclusion or the delivery of judgment by the Learned Law Lords of the Court of Appeal. This shall be the decision of the court,” the judge ruled.

    Ecobank had asked Justice Idris to recuse himself because it no longer had confidence in the judge to do justice in the case.

    The judge had refused the application, saying he would stick to his judicial oath in determining the case.

    His words: “It is always tempting for a judge against whom criticisms are made to say he would prefer not to hear further proceedings in which the critic is involved.

    “But it is important for a judge to resist the temptation to recuse himself simply because it’ll be comfortable to do so. The danger is that we’ll soon reach a position in which litigants were able to select judges to hear their cases simply by criticising all the judges that they do not want to hear their cases, whether the criticism is justified or not.

    “These issues are either for the appellate court or appealable issues and the defendant can exercise the right of appeal if it so desires. The application for the judge to recuse himself from this matter is most frivolous and it is refused,” he said.

    Ecobank subsequently appealed against the ruling.

    Read Also: Honeywell Flour Mills revenue hits N53.27b

     

     

  • Ecobank rebounds with N88.3b profit in 2017

    Ecobank Transnational Incorporated (ETI) Plc- the bank holding parent company of the Ecobank Group, witnessed a major turnaround in 2017 as it rebounded from a loss of N33.7 billion in 2016 to close 2017 with a pre-tax profit of N88.3 billion.

    Key extracts of the audited report and accounts of ETI for the year ended December 31, 2017 showed improvements in the bottom-line performance of the company, in both Naira and Dollars terms. Nigeria accounts for the larger part of the operations of the Ecobank Group. ETI is listed on three West African stock exchanges including Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, Ghana Stock Exchange in Accra and Nigerian Stock Exchange in Lagos.

    The report showed that gross earnings rose by 15 per cent from N655 billion in 2016 to N763.6 billion in 2017. Profit before tax recovered to N88.3 billion in 2017 as against loss before tax of N33.7 billion in 2016. Net profit also stood at N70 billion in 2017 compared with a net loss of N52.6 billion. Earnings per share thus improved from a loss of N2.59 in 2016 to positive earnings of N2.22 in 2017.

    Balance sheet analysis showed that total assets rose from N6.256 trillion in 2016 to N6.864 trillion in 2017. Loans to customers improved marginally from N2.82 trillion to N2.86 trillion. Customers’ deposits also increased by 13 per cent to N4.65 trillion in 2017 as against N4.12 trillion in 2016. Total equity grew by 24 per cent from N538 billion in 2016 to N665 billion in 2017.

    Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI) Plc, Mr Ade Ayeyemi, said the 2017 financial performance was an encouraging improvement on 2016 as all actions to improve the company’s efficiency were productive.

    According to him, customers also showed their confidence in the company’s value proposition by giving it more of their deposits, which grew by 13 per cent.

    He noted that the progressive moves to right-size and simplify the company’s businesses were designed to allow it to serve its customers better and create more sustainable value generation.

    “2017 also marked two years into our five-year ‘Roadmap to Leadership’ and digitisation strategy through which we have made real strides in fixing the foundations on which our businesses can grow. Among other things, we have reorganised our businesses, overhauled our risk management, improved our controls and systems, adopted technology to drive efficiency, and we are addressing capital allocation. In 2018 and beyond our focus will be on one thing: relentless execution. We will use all our resources to support our mission to serve our customers better, run our businesses more efficiently, and generate returns that meet and exceed the cost of equity,” Ayeyemi said.

     

  • Ecobank, Mastercard, 9mobile partner

    Ecobank Nigeria and MasterCard have launched a discount promotion with 9Mobile Nigeria to drive the use of Masterpass QR payments.

    The  at 10 of its Experience Centres in Lagos, Abuja and Port Harcourt.

    Under the arrangement, consumers transacting business in any of the locations in the three cities in the country are expected to make payment with their Masterpass QR to access a N500 airtime offer when they spend N5, 000 and above. The offer, which is to customers of all the banks, will run between March 21 and April 30, 2018.

    Speaking on the partnership, Head, Transaction Services Group (TSG), Ecobank Nigeria, Emile Sagna said, “building strategic relationships with merchants, consumers and technology platforms to deliver frictionless, real-time payments is crucial for us at Ecobank in ensuring that we take payments to the next level.” He disclosed that “Ecobank has issued 9Mobile and other merchants QR codes to allow consumers to use their existing banking apps from various banks to scan the QR code for payments at all participating 9Mobile Experience centers and other merchants locations.

    With the feature phone, the consumer needs to enter a merchant terminal Identifier into their phones to make payment.”

    Sagna noted that Masterpass QR offers the consumer safety, convenience and speed to make digital payment anywhere and anytime. Further, he explained  that Ecobank released its dynamic QR code which can be integrated into merchant’s ERP in order to address the peculiar needs of other business enterprises that require customized payment functionalities. He added that merchants will be able to generate dynamic QR codes for each payment request for the customer to simply input his PIN for authentication.

  • Ecobank deepens digital payment

    Ecobank deepens digital payment

    Ecobank has partnered with Facebook and MasterCard to deliver seamless, digital payments to small businesses via the Facebook Messenger platform. With this development, micro-merchants will be able to receive instant payments using the QR technology.

    This Messenger experience will launch in Nigeria, where MasterCard will pilot a new Masterpass QR both to help business owners move beyond cash transactions to accepting QR payments.

    With Ecobank’s presence in 33 African countries, the pilot in Nigeria is the beginning of a larger plan to include more businesses in Africa into the digital economy. Access to digital payments will help businesses expand to new markets, and unlock financial services and products that empower them to grow.

    Group Executive, Consumer Banking, Ecobank Transnational Incorporated (ETI), Patrick Akinwuntan, said this initiative is in line with the bank’s financial inclusion strategy to reach the underserved and unbanked in the society.  He noted that the partnership will further position Ecobank as a major enabler of digital payments across Africa and reinforce its goal to serve 100 million Africans by 2020.

    In his words: “In line with our goal to serve 100 million Africans by end of 2020, Ecobank is delighted to collaborate with Facebook and MasterCard to enable underserved and unbanked micro-merchants have the opportunity to open an Ecobank Xpress account within minutes and begin to receive instant payments using Ecobank Masterpass on the Facebook Messenger platform.”

  • Ecobank’s transformation agenda ‘on course’

    Ecobank’s transformation agenda ‘on course’

    The Managing Director, Ecobank Nigeria, Charles Kie has said the bank’s transformation agenda to be one of top three lenders in Nigeria within the next few years is on course.

    He spoke at the flag off of one year training programme for fresh graduates as part of Ecobank Graduate and Development Programme in Lagos. Kie, who was accompanied by other management staff, was on a visit to the Ecobank Training School that currently has 60 graduates, representing the first batch of 400 graduates to be employed and trained by the bank this year.

    He reiterated that the graduate trainee initiative is part of Ecobank’s future growth plan, which is part of a transformation agenda to make Ecobank the most preferred bank in the country.

    Kie who took the trainees through six key success factors listed capital as the first thing any bank must have. He noted that “those empowered to oversee the capital have to be well trained and knowledgeable so that they can ensure that funds in the bank are effectively deployed otherwise the bank may go down. Secondly, you need a good technology. “

    Also speaking, the Head, Human Resources, Ecobank Nigeria, Yves Mayilamene, described the graduate trainee programme by the bank as an investment in the future generations of Ecobankers. He stressed that the bank was investing in the people to accomplish its tall vision.

     

  • Alleged N5.5b debt: ‘My firms owed Ecobank separately’

    Alleged N5.5b debt: ‘My firms owed Ecobank separately’

    Honeywell Group chairman Dr Oba Otudeko has told the Federal High Court in Lagos that his companies owed Ecobank Nigeria Limited individually, but that the debt had been repaid.

    In his witness statement on oath filed before Justice Mohammed Idris, the business mogul said the firms jointly negotiated with the bank on the repayment terms.

    Justice Idris had, at the instance of Ecobank’s lawyer Mr. Divine Agbua, subpoenaed Otudeko to testify in an alleged N5.5billion debt suit between three of his companies and the bank.

    The companies – Anchorage Leisures Ltd, Siloam Global Ltd and Honeywell Flour Mills Plc – are praying the court to hold that they are not indebted to Ecobank.

    The bank’s lead counsel Mr Kunle Ogunba was stripped of his rank of Senior Advocate of Nigeria (SAN) on the basis that he filed multiple suits against Otudeko’s companies.

    The Legal Practitioners Privileges Committee (LPPC), acting on Honeywell Group’s petition, concluded that Ogunba allegedly abused the court process by filing multiple suits against Otudeko’s companies over the same issues.

    But, Ogunba had claimed that the suits were against the individual companies and did not amount to an abuse.

    Besides, he said Honeywell’s suit was “a bid to perpetually tie the hands” of his client.

    Ogunba had told the LPPC that his client’s decision to file several actions against individual companies within Honeywell Group was supported by judicial authorities.

    He also told the LPPC that the suits did not have the same parties and therefore did not amount to an abuse as alleged.

    “The suits have to be separate because winding up petition is ad-hominem to each individual company and can thus not be lumped together by a collective action,” Ogunba told LPPC.

    In his witness statement on Oath, Otudeko admitted that his companies owed the bank separately.

    He said: “The plaintiffs were individual customers of the defendant (Ecobank) and had personal outstanding exposures to the defendant.

    “In view of the fact that Honeywell Group Limited is the parent company of the plaintiffs, the plaintiffs under the auspices of the Honeywell Group, led by me, opened up negotiations to settle the then outstanding indebtedness of the plaintiffs to the defendant.”

    Agbua had urged the court to adjourn the case to await the outcome of an application for stay of proceedings pending at the Court of Appeal.

    But the companies counsel, Chief Wole Olanipekun (SAN), opposed the request for an adjournment, an objection which the judge sustained.

    Otudeko maintained that his companies had paid N3.5billion as of December 12, 2013 as the full and final payment for the N5.5billion debt as agreed by the parties in a July 22, 2013 meeting.

    Last Wednesday’s proceedings were devoid of the drama of February 8 when Otudeko tried to evade television cameras.

    Sporting his trademark Yoruba attire, Otudeko and his aides tried to prevent journalists from taking his photographs and videoing him as he left the court.

    There was also mild drama inside the courtroom as plaintiff’s counsel Olabode Olanipekun and Agbua repeatedly clashed.

    There were arguments between the lawyers on whether Otudeko could be examined, cross-examined and re-examined on his statement on oath.

    A scuffle broke out between some of Otudeko’s aides and journalists covering the proceedings.

    As his aides walked beside him out of the courtroom, they beat a quick retreat to the back of the building on sighting a TV camera.

    Otudeko tried to escape through the back gate but the camera man was ahead of them.

    The Honeywell chief and his aides stood at a safe distance from the camera, but the TV reporter and cameraman stood at both exit points of the court premises. The move left Otudeko and his aides plotting the best means of escape.

    Some of the business mogul’s aides confronted the cameraman, asking him: “Why are you doing this?” while shielding their boss.

    There was a mild scrap when one of the aides tried to force the cameraman to stop recording the scene.

    Otudeko succeeded in leaving the court at about 11.40am in-between his aides who shielded him from the cameraman.

    Agbua had told Justice Idris that Otudeko ignored a court summons, which Otudeko denied.

    He said while in the witness box: “This is a first experience, and I am extremely delighted to be here to see  professionals in practice. I was away from Lagos, and only got a call from my officers who informed me of the position, and I came back.

    “I have great respect for the institution of the court, and so I have deposed to my witness statement and have filed it.”

    But after the proceedings of last Wednesday, Otudeko walked out beside Chief Olanipekun and went straight to his car that was driven into the court premises.

    Justice Idris adjourned till March 12 for continuation of hearing.

     

  • Alleged N5.5b debt: My firms owed Ecobank individually – Otudeko

    Alleged N5.5b debt: My firms owed Ecobank individually – Otudeko

    The Chairman of the Honeywell Group, Dr. Oba Otudeko, has told the Federal High Court in Lagos that his companies owed Ecobank Nigeria Limited individually.

    He, however, said the debt had been repaid.

    In his witness statement on oath filed before Justice Mohammed Idris, the business mogul said the firms jointly negotiated with the bank on the repayment terms.

    Ecobank denied applying for a bench warrant to compel Otudeko’s appearance.

    Justice Idris had at the instance of Ecobank’s lawyer, Mr. Divine Agbua, subpoenaed Otudeko to testify in an alleged N5.5billion debt suit between three of his companies and the bank.

    The companies – Anchorage Leisures Limited, Siloam Global Limited and Honeywell Flour Mills Plc – are praying the court to hold that they were not indebted to Ecobank.

    The bank’s lead counsel, Mr. Kunle Ogunba, was stripped of his rank of Senior Advocate of Nigeria (SAN) for filing multiple suits against Otudeko’s companies.

    The Legal Practitioners Privileges Committee (LPPC), acting on Honeywell Group’s petition, concluded that Ogunba allegedly abused the court process by filing multiple suits against Otudeko’s companies over the same issues.

    But, Ogunba had claimed that the suits were against the individual companies and did not amount to an abuse.

    In his witness statement on Oath, Otudeko said: “The plaintiffs were individual customers of the defendant and had personal outstanding exposures to the defendant.

    “In view of the fact that Honeywell Group Limited is the parent company of the plaintiffs, the plaintiffs under the auspices of the Honeywell Group, led by me, opened up negotiations to settle the then outstanding indebtedness of the plaintiffs to the defendant.”

    Agbua had urged the court to adjourn the case to await the outcome of an application for stay of proceedings which he filed at the Court of Appeal.

    But the companies counsel, Chief Wole Olanipekun (SAN), opposed the request for an adjournment, an objection which the judge sustained.

    Otudeko maintained that his companies had paid N3.5billion as of December 12, 2013 as the full and final payment for the N5.5billion debt as agreed by the parties at a July 22, 2013 meeting.

    Justice Idris adjourned the matter till March 12 for continuation of hearing.

     

  • Ecobank chief advises customers on wealth planning, mgt

    Ecobank Securities, Wealth & Asset Management (SWAM) is determined to help its customers create, preserve and protect their wealth for themselves and successive generation.

    Speaking during the SWAM breakfast session for customers in Lagos, the Managing Director, EDC Fund Management and Country Head, Securities, Wealth and Asset Management, Ibukun Oyedeji, said the business offered additional products on wealth management.

    She said the bank is committed to helping its customers maximize their wealth.

    Oyedeji who is also Country Manager, SWAM said Nigeria has over 12,000 High Net-worth Individuals as defined by global standards, this is second to South Africa. However, South Africa has been successful with managing their wealth. She commented that Nigerians are good at making money and creating wealth, but have not paid attention to sustaining the wealth, and passing it on to the next generation. She therefore encouraged Nigerian to embrace wealth creation, preservation as a way of life for every citizen especially the wealthy Nigerians.

    She said SWAM’s goal is to help its customers to plan their future and their wealth, saying: “As a bank, we think of how we can guide our premium customers to make sure that the wealth that they have created, actually adds value to them, and goes to their next generation and their children’s generation. “We believe that both local and offshore investment and partnership will help in making this a reality, which is one of the reasons we have partnered with Nedbank because Nedbank brings in that offshore balance into your wealth portfolio.

    “Investing funds in one currency is risky, so Nedbank’s partnership gives access to large pool of funds globally so that one can spread his or her investments all over the world in different currencies,” Oyedeji added.

    Also speaking, Ecobank Nigeria’s Executive  Director, Consumer Banking, Mrs. Carol Oyedeji stressed that there are enormous benefits associated with diversified investments portfolios being offered by Ecobank and Securities, Wealth & Asset Management (SWAM). Mrs. Oyedeji, reiterated that the event was targeted to appreciate and update customers on the additional product offerings and innovative service delivery the bank has introduced for wealth creation.

  • Ecobank unlocks investment opportunities in insurance

    Ecobank Nigeria Limited is taking strategic steps to unlock investment opportunities in the insurance sector, Managing Director, Ecobank Development Company (EDC) Fund Management, Ibukun Oyedeji, said yesterday.

    Speaking yesterday at the ‘Insurance Roundtable’ organised by Ecobank Nigeria/Securities, Wealth & Asset Management (SWAM), Ecobank Capital, she said the lender woudcontinue to take steps that promote insurance penetration in the country.

    She disclosed that Nigerian insurance industry has huge potentials that are largely untapped.

    According to her, the insurance roundtable was set up to be a forum that would bring all insurance companies together to discuss the market and pertinent issues in the industry.

    “One of the things we know in Nigeria is that the insurance industry has lots of potentials, but has always remained in the infantry stage where the development of the market has struggled over time. So, at Ecobank Nigeria, we saw this as opportunity for them to discuss,” she said.

    Speaking further, she said: “There is need for more collaboration between the insurance and banks. Although the regulator has advised on the Bancassurance, one of the things we think is the way outside the regulator’s imposed collaboration is that  practitioners need to make sure that the collaboration comes as improved synergy to see how well we can cover the entire Nigeria, especially the masses. If you look at the demography of Nigeria, 50 per cent of Nigerians are working class and they need to be insured against loss of life, critical illnesses, among others,” she said.

    Continuing, she said that: “If a merger happens in the market, which I think needs to happen, I think in the long term, insurance would be a buy for me. I think a lot of time, what has happened in the industry is the mis-selling by the agents. A lot of agents in order to meet their targets, sell the wrong insurance and you don’t know. You keep paying for that insurance until when it is time to claim the insurance”.

    Also speaking, the bank’s Executive Director, Corporate Banking, Akin Dada, said tapping the opportunities in the insurance sector is good for the economy.

    He said there is need for the bank to work with the insurance companies to break the barriers of insurance penetration.

    “Insurance penetration has always been a major barrier. We are working with the insurance companies to see how we can unlock the opportunities in the sector. Tax incentive will enhance awareness in the sector and will help to boost insurance penetration in the country,” he said.