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Union Bank In Trouble … As Multinational Oil Company Slams the Bank with N6.7 Billion Suit

Published

6 years ago

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We gathered that One of the nation’s first generation Banks, Union Bank is in all sorts of bother as it scrambles to defend itself against a hefty N6.7 billion suit brought against it by a multinational oil company Petrocam Trading Nigeria Plc.

Bringing the case before the high court in Lagos, Petrocam’s lawyer Barrister Gboyega Oyewole (SAN) contended in the filed statement of claim that Union Bank flouted the joint venture agreement entered with the plaintiff to jointly collaborate in opening letters of credit confirmation lines for the importation of petroleum products.

The plaintiff averred that it had sometimes in 2014 secured an import finance facility from Union Bank for importation of petroleum products and raised letters of credit to utilize this import facility. The initial facility of $45 million was increased to $100 million. The company duly provided bank guarantees for the facility. There was also an understanding that the facility would be repaid from sales proceeds and oil subsidy reimbursements.

Under the agreement, Union Bank would secure foreign exchange for the company to enable it finance its international oil purchases. The company however claimed that the bank defaulted by failing to secure forex from the CBN during the 2014/.2015 period when 90 percent of the company’s import transactions were being conducted thereby causing the company to suffer huge losses.

It further claimed that out of the $76 million it required to finance the transactions covered by the agreement, Union Bank was only able to produce about $22 million, meaning that Petrocam could not complete a large percentage of the deals, leading to huge profit loss.

The company contended further that Union Bank failed to bid for foreign exchange when the exchange rate was between N155-160 to the dollar but only bided when the rate had increased to N288-320 per dollar, thereby deliberately inflating the costs of maintaining the dollar credit facility.

In light of these claims, Petrocam is seeking a declaration that Union Bank’s breach of duty under extant laws resulted in unlawful debits and exorbitant interest charges on the company’s current accounts with the bank, and an order compelling the bank to reverse all wrongful debits on the company’s current account.

It is asking the court to compel Union Bank to credit the company’s current account to the tune of N6.7 billion plus interest on the sum at the rate of 22% per annum from commencement of suit to date of judgement, and thereafter &% per annum from date of judgement to final liquidation of the sum. It is also seeking N50 million in general damages.

Rather than mount a defence, Union Bank has however launched its own suit against the company and its MD Patrick Ilo, claiming N10 billion and $55.3 million plus 27% interest per annum vand N20 million as general damages. This new suit which is before the federal high court in Lagos has however been contested by Petrocam which has filed a preliminary objection. It is asking for the case to be thrown out because of its own case which is pending before a Lagos High Court.

Source: The Lagos Times

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News and Report

Zenith Bank Assures Customers on Seamless Transactions, Apologizes for Disruptions During Infrastructure Upgrade

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1 hour ago

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October 3, 2024

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Nigeria’s leading financial institution, Zenith Bank, has reassured its customers of improved services following recent infrastructure upgrades.

 

In a message posted on Thursday, the bank apologised for the service disruptions experienced across its e-channels during the upgrade period.

 

The bank clarified that the glitches were a result of routine information and technology maintenance, which is essential for optimizing service delivery.

 

Zenith Bank emphasized its commitment to ensuring 100% uptime, stating that it takes this responsibility “very personally” and continuously allocates resources to maintain uninterrupted service availability.

 

In the statement, the bank expressed its sincere apologies for any inconvenience caused to customers during the upgrade process, highlighting that the information technology enhancements are designed to improve the quality of service for its esteemed clientele.

 

The message reads in part:

 

Dear Valued Customer,

 

We sincerely apologise for the service disruptions you experienced recently on our banking channels. This was due to an information Technology upgrade aimed at improving the quality of service we provide.

 

We have made significant progress with the upgrade and you can now perform transactions conveniently with the following Zenith bank Channels:

 

Your Zenith Bank Debit Card

The Zenith Bank Mobile App

The Zenith bank Internet Banking Platform

Zenith Agents nationwide (Agent Banking)

 

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News and Report

Just In: Tinubu Set To Embark on  Two-weeks Annual Leave.

Published

22 hours ago

on

October 2, 2024

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President Bola Ahmed Tinubu has announced a two-week annual leave

 

According to Bayo Onanuga Special Adviser to the President (Information & Strategy) President Bola Tinubu will depart Abuja today for the United Kingdom to begin a two-week vacation, part of his yearly leave.

 

He will use the two weeks as a working vacation and a retreat to reflect on his administration’s economic reforms.

 

He will return to the country after the leave expires.

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News and Report

Alleged Corruption : El-Rufai denies allegations, vow to swear on Quran….

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1 day ago

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October 2, 2024

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A former Governor of Kaduna State, Nasir El-Rufai, has asserted that his entry into politics was driven solely by a desire to serve the people, not to amass wealth or siphon public funds.

 

El-Rufai made this declaration on Tuesday during a Hausa program aired on Freedom Radio, Kaduna.

 

Speaking candidly, the former governor dismissed allegations of financial misconduct during his administration, maintaining that he was already financially content before assuming office.

 

The Kaduna State House of Assembly had earlier indicted El-Rufai’s administration for the misappropriation of over N423 billion during his eight-year tenure.

 

 

However, El-Rufai and his associates have categorically denied the accusations, labeling them as politically motivated.

 

“I did not join politics to steal money or enrich myself. I was satisfied with what I had before becoming governor,” El-Rufai stated, adding that he is ready to swear on the Quran to prove his innocence if other former governors and current leaders do the same.

 

 

“I have always prayed for guidance in all I do, and I strive not to betray the trust of the people. Whenever the former governors of Kaduna State and other leaders are ready to swear with the Quran that they never misappropriated public funds, I will join them. I have no fear because I know I never took money that belonged to the people,” he said.

 

 

The former governor expressed dismay over the allegations, saying his administration has been accused without any clear evidence of where the money went missing or who took it.

 

He further claimed that his allies were being targeted and invited by the Independent Corrupt Practices Commission and the Economic and Financial Crimes Commission as part of a smear campaign against him.

 

“I have left everything to God’s judgment. I have prayed and will remain silent on the issue. I have instructed my lawyers to take legal action against those tarnishing my name, but for now, I’m focused on my activities like reading and writing,” he said.

 

 

El-Rufai emphasised that service to the people continues even after leaving office, stating, “You don’t need to hold a position in government to serve. We are still working with like-minded individuals who genuinely want to serve the people, not those seeking to enrich themselves.”

 

Looking ahead, El-Rufai revealed that he intends to return to politics in 2027 after completing his studies, remarking, “There is no retirement in politics. God willing, we will return and continue serving the people.”

 

 

 

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