N32bn debt: Innoson wants court to stop GTBank’s holdings structure bid – Newstrends
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N32bn debt: Innoson wants court to stop GTBank’s holdings structure bid

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4 years ago

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Hearing will begin at the Federal High Court, Enugu, Monday (today) in an application filed by Innoson Nigeria Limited seeking to stop GTBank from transmuting into a financial holding company until the bank has paid a N32 billion judgment debt it obtained against it.

Innoson in a statement issued by its Head of Corporate Communications, Cornel Osigwe, said while awaiting GTBank Plc to come up with a payment plan for the over N32 billion judgement debt, the bank should suspend its proposed new structure.

Innoson is seeking the following order of perpetual injunctions:

(a) restraining the 4th Defendant (Corporate Affairs Commission) from deregistering the 1st Defendant (GTB) as a public limited liability company and or re-registering the 1st Defendant (GTB) as a private limited liability until it-GTB- pays the UC outstanding judgment debt of N32, 875, 204, 984.38k arising from Suit Nos: FHC/L/CS/603/2006 and No. FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in appeal Nos. CA/1/258/2011, SC.694/2014 and CA /E/288/2013 to Innoson Nig Ltd;

  1. An order of perpetual injunction restraining the 4th Defendant (Corporate Affairs Commission) from registering or re-registering the 1st Defendant (GTB) as a holding or financial holding company whether as a public or private limited liability company until it – the 1st Defendant(GTB) – pays Innoson Nigeria Ltd the outstanding total judgment debt of N32, 875, 204, 984.38k (Thirty two billion, eight hundred and seventy five million, two hundred and four thousand, nine hundred and eight four naira, thirty eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirm by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:
  2. An order cancelling the 1st Defendant’s (GTB’s) special  resolution and or any other of its resolution that it should be deregistered as a public limited liability company and or be re-registered as a private limited liability company and or a holding company until it -the 1st Defendant (GTB)- pays Innoson Nig Ltd the total outstanding judgment debt of  N32, 875, 204, 984.38k (Thirty two Billion, Eight Hundred and seventy Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013:
  3. an order setting aside the 3rd Defendant’s (Security and Exchange Commission) No -objection to 1st Defendant’s proposal to be re-registered as a private limited liability company and as a holding or a holding financial company:
  4. An order setting aside the 2nd Defendant’s approval -in- principal granted to the 1st Defendant to operate as a holding or a holding financial company.
  5. An order of perpetual injunction restraining the 2nd Defendant from granting the 1st Defendant a financial holding company license and or a final approval to operate or carry on business as a financial holding company whether in its present name or as a private limited liability company until it, the 1st Defendant pays the Plaintiff the total outstanding judgement debt of N32, 875, 204, 984. 38k (Thirty Two Billion, Eight Hundred and Seventy-Five Million, Two Hundred and Four Thousand, Nine Hundred and Eighty-Four Naira, Thirty-Eight Kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014, and CA/E/288/2013.

Osigwe in the statement explained that the Supreme Court of Nigeria had struck out GTB’s motion filed to set  aside its earlier decision/order made on 27th February 2019 dismissing GTB’s against Court of Appeal judgement of 6th February 2014  in favor of Innoson Nigeria Ltd

The statement added, “Recall that the Federal High Court, Awka Division on March 27th, 2019, pursuant to Supreme Court dismissing GTB’s appeal, granted leave to Innoson Nigeria Ltd to enforce and execute the judgment and Garnishee Order Absolute made by the court coram Shakarho, J at the Ibadan Judicial Division on the 18th of May 2010 and the 29th of July 2011 respectively. This order was concurrently affirmed by the Court of Appeal in the judgment of 6th February 2014 and by the Supreme Court in its judgment of 27th February 2019.

“As Innoson Nigeria Ltd commenced the tedious act of the execution, GTB rushed to the court vide its desperate motion on notice seeking orders staying or suspending the execution embarked by Innoson Nigeria Ltd and also seeking orders setting aside the exparte orders made by the court granting Innoson leave to enforce the judgment and to issue the processes of executing same.

“Whilst refusing GTB’s application and staying further proceedings the court further held that the order it made on March 27th, 2019 in favor of Innoson Nigeria Ltd granting it leave to enforce the judgment and issue processes of execution of the judgment are valid; also that all the steps taken to levy executions in pursuance of that order are still valid and are not vacated; whilst all the prayers by GTB in its motion of 1st April 2019 are not granted.

“GTB however rushed back to the Supreme Court and applied for an order setting aside the Supreme Court’s judgement dismissing its appeal against the above judgement. However, the Supreme Court struck out the motion on Tuesday, November 3rd, 2020.”

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Dangote refinery increases petrol price from N899 to N955/litre

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15 hours ago

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January 17, 2025

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Dangote refinery increases petrol price from N899 to N955/litre

 

Dangote Petroleum Refinery has announced an increase in the cost of lifting its petrol from N899 per litre to N955.

This also affirmed the projection of oil marketers and Petroleum and Natural Gas Senior Staff Association of Nigeria that Nigerians should gear up for an imminent hike in the pump price of fuel.

This is coming following the latest rise in the cost of crude oil in the international market.

Dangote refinery in a notice on Friday titled, “Communication on PMS Price Review”, said the new pricing structure of N955 per litre was for customers purchasing between two million and 4.99 million litres.

Bulk buyers of five million litres or more are to pay N950 per litre, according to the notice.

This price adjustment indicates a 6.17% increase, or N55.5 per litre, compared to the discounted rate of N899.50 per litre offered during December 2024’s holiday period.

The refinery added that the new rates took effect from 5:30pm Friday impacting all unsold stock balances and pending orders.

Dangote refinery informed its customers of the price revision, attributing the change to rising global oil prices.

“Kindly be advised that effective from 5:30 PM today, an upward adjustment has been implemented on the gantry price of Premium Motor Spirit.

“Please note that all stock balances yet to be lifted as at the above-stated time are to be repriced at the new reviewed prices.

“We shall communicate with customers on their revised volumes based on the reviewed prices, in due course,” it read in part.

The increase is due to the rise in the price of Brent, the global benchmark for crude.

Brent crude rose to $81.84 per barrel—the highest level in 2025.

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Petrol price hike imminent over biting exchange rate – PENGASSAN

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1 day ago

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January 17, 2025

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President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo

Petrol price hike imminent over biting exchange rate – PENGASSAN

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has warned that the price of Premium Motor Spirit (PMS), commonly known as petrol, could increase if the upward trend in global crude oil prices persists.

Speaking during PENGASSAN’s National Executive Council Meeting in Lagos on Thursday, Osifo highlighted the correlation between rising crude oil costs and Nigeria’s foreign exchange challenges, cautioning that the situation may lead to higher fuel prices.

“The crude price rose to $80 per barrel today. Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated.

He attributed the nationwide high fuel prices to the volatile exchange rate, even with the gradual resumption of operations at domestic refineries. However, he noted that these facilities were not yet operating at full capacity.

Addressing misconceptions about refining, Osifo explained that producing high-quality PMS involves extensive blending and processing. “The old Port Harcourt refinery is functional, and there is significant progress at the Kaduna and Port Harcourt refineries. Refineries globally engage in blending operations; it is a normal part of the process,” he said.

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Osifo linked the rising cost of petrol to the weakened naira, explaining that a stronger exchange rate could stabilize PMS prices.

“The price of PMS is directly linked to our weak naira. If the exchange rate improves to below N1,000 to a dollar, PMS could sell for N500–N600 per litre,” he added.

Drawing comparisons with countries like Venezuela and Zimbabwe, Osifo stressed the importance of currency management in the oil and gas sector, which relies heavily on U.S. dollars for equipment, operations, and expatriate salaries.

On local refining, he refuted claims that it would automatically lead to significantly lower prices, emphasizing the importance of maintaining cost margins. “Producing locally does not mean selling below cost. Even farmers calculate their production costs before adding margins,” he explained.

In a separate discussion, Osifo criticized Nigeria’s proposed 2025 budget of ₦49 trillion (approximately $30 billion), describing it as inadequate for a country with a population exceeding 230 million.

“The budget of $30 billion is abysmally low for a country like Nigeria, especially when you compare it with nations like South Africa, which has a population of about 60 million but operates on a budget of over $120 billion,” he stated.

He urged the Nigerian government to explore its vast natural and mineral resources to increase revenue and reduce reliance on borrowing.

Petrol price hike imminent over biting exchange rate – PENGASSAN

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Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA

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January 17, 2025

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Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the country’s Compressed Natural Gas (CNG) conversion capacity increased by over 2,500 per cent in 2024.

Mr Farouk Ahmed, Authority Chief Executive, NMDPRA, said this on Thursday in Abuja at the inaugural Petroleum Industry Stakeholders’ Forum, organised by the Ministry of Petroleum Resources.

Ahmed said that NMDPRA supported the Presidential Compressed Natural Gas Initiative (PCNGI) by stimulating 186 new conversion centers which triggered the county’s conversion capacity.

“The NMDPRA will continue to collaborate with the PCNGI to ensure deployment of CNG infrastructure in major cities of  Lagos and Abuja, up to 100,000 conversions, while collaborating with states to develop Nigeria Gas Vehicles (NGVs) in other areas.

“The development of CNG as a viable alternative to Petrol has been incentivised.

“These conversions alongside new buys have raised the Nigerian Gas Vehicles population to an estimated 30,000 to 50,000 vehicles and trucks, and it continues to grow daily.

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“With over 400 million dollars attracted for investment in 86 and 65 new daughters and mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56,” he said.

Ahmed said that the collaboration between PCNGI, NMDPRA and Standards Organisation of Nigeria (SON) led to the development of standards and the NGV Monitoring System expected to be inaugurated this year.

“The NMDPRA also collaborates with the SON, the National Automotive Design and Development Council (NADDC) and the National Institute of Transportation Technology (NITT) in ensuring that our mobility CNG growth is achieved in a safe and sustainable manner,” he said.

The NMDPRA boss, however, listed some challenges facing the initiative to include establishment and operation of petroleum handling facilities without proper licensing, permits and authorisations.

He listed other challenges to include poor collaborations for Open/ third party access to facilities and lack of cooperation of some operators for an effective regulatory oversight, in line with the Petroleum Industry Act (PIA) provisions.

“We implore the industry to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection and community participation.

“As we progress into 2025, the NMDPRA will continue to consolidate on its successes for enhanced regulatory oversight.

“This will include the upgrade of our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation and sustainability in the industry,” Ahmed said.

 

Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA

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