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Ex-bankers’ N9.2b Suit Against CBN, Others for Hearing Dec. 13

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  • Ex-bankers’ N9.2b Suit Against CBN, Others for Hearing Dec. 13

The over 14,000 ex-staff of banks who filed a suit against the Central Bank of Nigeria following their retrenchment in 2006 as a result of the banking consolidation exercise would have the opportunity of taking their pleas at the Lagos Division of the National Industrial Court in December 13, 2017.

The ex-bankers lost their jobs in 2006 when the apex bank revoked the operational licences of 13 commercial banks for failing to attain the N25bn capitalisation threshold then introduced and enforced by the apex bank.

Specifically, the former bankers, amongst other things, wants all their entitlements and terminal benefits, which they put at N9,166,424,276, from four commercial banks, which acquired the eight banks for which they were working prior to the 2006 capitalisation.

The eight banks whose lincences were revoked in 2006 are All States Trust Bank, Hallmark Bank, Gulf Bank Plc, Liberty Bank, Metropolitan Bank,Trade Bank, Assurance Bank and Eagle Bank.

Included as defendants in their suit marked NIC/LA/603/2016 before Justice Benedict Kanyip are the Nigeria Deposit Insurance Corporation, the CBN, and the four commercial banks – Ecobank Nigeria Limited, United Bank for Africa Plc, Skye Bank Plc and Zenith Bank Plc – which acquired the eight banks for which the claimants were working prior to the 2006 capitalisation policy by the CBN.

The erstwhile bank workers are urging the court to declare that the NDIC and the CBN acted contrary to the law and prejudiced their interests while entering into agreements with Ecobank, UBA, Skye Bank and Zenith Bank, to sell the assets of their former employers.

The claimants are contending that it was unlawful and wrong for the NDIC and the CBN to sell the assets of the eight banks to Ecobank, UBA, Skye Bank and Zenith Bank, without also transferring the liability of paying the terminal benefits of the disengaged bank workers to Ecobank, UBA, Skye Bank and Zenith Bank.

The lawyer to the claimants, Dotun Onafowope, argued that both the NDIC and the CBN misunderstood their roles and misapplied the law in the 2006 consolidation exercise by categorising the eight non-consolidated banks as failed banks.

It would be recalled that the ex-bankers had earlier approached the court under the aegis of the Incorporated Trustees of the Association of Ex-Staff of Non-Consolidated Banks of Nigeria, but Justice Kanyip had questioned the possibility of the claimants coming before him as a group registered under the Corporate and Allied Matters Act as opposed to as individuals.

Taking the court’s hint, Onafowope, at the recent proceedings, brought an application dated June 30, 2017, seeking to substitute the group with names of 847 individual claimants.

However the matter could not proceed due mainly to the absence of the NDIC lawyer, who had written to the court that he was indisposed.

But before adjourning the matter till December 13, 2017, Justice Kanyip noted that the claimants’ lawyer, Onafowope, had to convince the court that there was even a competent suit before the court that could be substituted with another.

He asked whether the claims of the ex-bank workers were not statute barred against the NDIC and the CBN in view of the Public Officers’ Protection Act, which he said gave a window of only three months to file a suit against an action taken by a public officer.

Besides, he sought to know whether the claimants had not been caught by the six years’ limitation for the other defendants.

But Onafowope said though the consolidation took place in 2006, it was January 2011 that the claimants were supposed to be paid their terminal benefits, adding that the consolidation had been concluded as the assets of the acquired banks were still being advertised.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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