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N5.5bn Debt: Court Summons Oba Otudeko to Appear and Testify in Suit Against Ecobank

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  • N5.5bn Debt: Court Summons Oba Otudeko to Appear and Testify in Suit Against Ecobank

A Federal High Court in Lagos wednesday reiterated its summons on the alter ego of Honeywell Group, Mr. Oba Otudeko, to appear in court and give evidence, in relation to an alleged N5.5billion debt allegedly owed Ecobank Nigeria Plc.

Justice Mohammed Idris issued the orders while delivering a ruling in a suit by Honeywell Flour Mills Plc, and its sister companies – Anchorage Leisures Ltd and Siloam Global Ltd against Ecobank Nigeria Ltd, challenging the alleged indebtedness.

Justice Idris adjourned the suit until February 8 for personal service of the subpoena/witness summons on Otudeko.

Yesterday when the case was called, counsel representing Ecobank, Mr. O.A Divine from the law firm of Mr. Kunle Ogunba (SAN), informed the court that he had two applications dated January 26 and January 29 respectively, but urged the court to allow him move the application dated January 26, which is seeking for a stay of proceedings in the suit.

In opposition, counsel to the plaintiff, Mr. Bode Olanipekun, after confirming receipt of the said applications, urged that the latter application (January 29) be dismissed if the defendant was not inclined to moving same, adding that he was prepared to withdraw his objection if the defendant is prepared to move the applications.

The court consequently, struck out the application dated January 29, and urged the defence to move the application dated January 26.

In moving his application for stay of proceedings, defence counsel told the court that the application was supported by a 19 paragraphs affidavit, as well a written address filed on same date.

According to Divine, the crux of the application, is that, on December 21, 2017, the court had delivered a ruling in which it refused its (Ecobank) motion for stay of proceedings, irrespective of the its notice of appeal.

He said the applicant being aggrieved by that ruling, had filed a notice of appeal before the court, urging it to grant same, as it does not share similar jurisdiction with the court of appeal.

He argued that if the application is not granted, it would render nugatory the outcome of the appeal it filed.

In opposition with a 20-paragraph counter affidavit, Olanipekun argued that firstly, that the applicant’s affidavit in support of his motion, had no seal attached, adding that it is a requirement of rules 10 of the rules of professional conduct.

Again, he argued that reliefs three of the applicant’s interlocutory application is for a stay of proceedings in the trial court, adding that the trial court cannot grant the final relief which the applicant is asking the appellate court to grant.

He argued that the applicant had not also exhibited due diligence as they have not even transmitted their records of appeal, adding that the appeal predicating the instant one, was not even ripe for hearing.

He urged the court to dismiss the application, and order the applicant to open his case and call his witness, so that the case could proceed.

In his ruling, Justice Idris held that having taken a cursory look at the records before him, the court was of the view that the reliefs sought by the applicant are to be decided by the appellate court.
The court accordingly, struck out the application.

When asked to call his witness, the defence counsel told the court that it intended to call the arrow head of Honeywell Group, Otudeko, as its first witness.

He told the court that a subpoena had been issued on the witness, who fully had knowledge of the summons, but had decided to ignore same.

Divine then urged the court to grant an adjournment, to enable the witness appear in court and give evidence in the case, failing which he would be moving the court to issue a bench warrant for his arrest and production in court.
In response, Olanipekun argued that the said subpoena could only probably have been served on the intended witness recently, rather earlier, and urged the court to look at its record.

He submitted that this was a ploy to further frustrate the suit, since the defence had a second witness it could call instead of the first.

After a perusal at the records, the court held that the subpoena was only served on February 6, on a third party, and not personally on Oba Otudeko.

The court then ordered that: “In the light of the above, i will redirect that proper service of the subpoena be effected personally on the witness, to enable him attend court, and I urge counsel to cooperate in this light.”

The court consequently adjourned the case until February 8 for continuation.

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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Commodities

Cocoa Fever Sweeps Market: Prices Set to Break $15,000 per Ton Barrier

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Cocoa

The cocoa market is experiencing an unprecedented surge with prices poised to shatter the $15,000 per ton barrier.

The cocoa industry, already reeling from supply shortages and production declines in key regions, is now facing a frenzy of speculative trading and bullish forecasts.

At the recent World Cocoa Conference in Brussels, nine traders and analysts surveyed by Bloomberg expressed unanimous confidence in the continuation of the cocoa rally.

According to their predictions, New York futures could trade above $15,000 a ton before the year’s end, marking yet another milestone in the relentless ascent of cocoa prices.

The surge in cocoa prices has been fueled by a perfect storm of factors, including production declines in Ivory Coast and Ghana, the world’s largest cocoa producers.

Shortages of cocoa beans have left buyers scrambling for supplies and willing to pay exorbitant premiums, exacerbating the market tightness.

To cope with the supply crunch, Ivory Coast and Ghana have resorted to rolling over contracts totaling around 400,000 tons of cocoa, further exacerbating the scarcity.

Traders are increasingly turning to cocoa stocks held in exchanges in London and New York, despite concerns about their quality, as the shortage of high-quality beans intensifies.

Northon Coimbrao, director of sourcing at chocolatier Natra, noted that quality considerations have taken a backseat for most processors amid the supply crunch, leading them to accept cocoa from exchanges despite its perceived inferiority.

This shift in dynamics is expected to further deplete stocks and provide additional support to cocoa prices.

The cocoa rally has already seen prices surge by about 160% this year, nearing the $12,000 per ton mark in New York.

This meteoric rise has put significant pressure on traders and chocolate makers, who are grappling with rising margin calls and higher bean prices in the physical market.

Despite the challenges posed by soaring cocoa prices, stakeholders across the value chain have demonstrated a willingness to absorb the cost increases.

Jutta Urpilainen, European Commissioner for International Partnerships, noted that the market has been able to pass on price increases from chocolate makers to consumers, highlighting the resilience of the cocoa industry.

However, concerns linger about the eventual impact of the price surge on consumers, with some chocolate makers still covered for supplies.

According to Steve Wateridge, head of research at Tropical Research Services, the full effects of the price increase may take six months to a year to materialize, posing a potential future challenge for consumers.

As the cocoa market continues to navigate uncharted territory all eyes remain on the unfolding developments, with traders, analysts, and industry stakeholders bracing for further volatility and potential record-breaking price levels in the days ahead.

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Crude Oil

IOCs Stick to Dollar Dominance in Crude Oil Transactions with Modular Refineries

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Crude Oil - Investors King

International Oil Companies (IOCs) are standing firm on their stance regarding the currency denomination for crude oil transactions with modular refineries.

Despite earlier indications suggesting a potential shift towards naira payments, IOCs have asserted their preference for dollar dominance in these transactions.

The decision, communicated during a meeting involving indigenous modular refineries and crude oil producers, shows the complex dynamics shaping Nigeria’s energy landscape.

While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously hinted at the possibility of allowing indigenous refineries to purchase crude oil in either naira or dollars, IOCs have maintained a firm stance favoring the latter.

Under this framework, modular refineries would be required to pay 80% of the crude oil purchase amount in US dollars, with the remaining 20% to be settled in naira.

This arrangement, although subject to ongoing discussions, signals a significant departure from initial expectations of a more balanced currency allocation.

Representatives from the Crude Oil Refinery Owners Association of Nigeria (CORAN) said the decision was not unilaterally imposed but rather reached through deliberations with relevant stakeholders, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

While there were initial hopes of broader flexibility in currency options, the dominant position of IOCs has steered discussions towards a more dollar-centric model.

Despite reservations expressed by some participants, including modular refinery operators, the consensus appears to lean towards accommodating the preferences of major crude oil suppliers.

The development underscores the intricate negotiations and power dynamics shaping Nigeria’s energy sector, with implications for both domestic and international stakeholders.

As discussions continue, attention remains focused on how this decision will impact the operations and financial viability of modular refineries in Nigeria’s evolving oil landscape.

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Energy

Nigeria’s Dangote Refinery Overtakes European Giants in Capacity, Bloomberg Reports

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Aliko Dangote - Investors King

The Dangote Refinery has surpassed some of Europe’s largest refineries in terms of capacity, according to a recent report by Bloomberg.

The $20 billion Dangote refinery, located in Lagos, boasts a refining capacity of 650,000 barrels of petroleum products per day, positioning it as a formidable player in the global refining industry.

Bloomberg’s data highlighted that the Dangote refinery’s capacity exceeds that of Shell’s Pernis refinery in the Netherlands by over 246,000 barrels per day. Making Dangote’s facility a significant contender in the refining industry.

The report also underscored the scale of Dangote’s refinery compared to other prominent European refineries.

For instance, the TotalEnergies Antwerp refining facility in Belgium can refine 338,000 barrels per day, while the GOI Energy ISAB refinery in Italy was built with a refining capacity of 360,000 barrels per day.

Describing the Dangote refinery as a ‘game changer,’ Bloomberg emphasized its strategic advantage of leveraging cheaper U.S. oil imports for a substantial portion of its feedstock.

Analysts anticipate that the refinery’s operations will have a transformative impact on Nigeria’s fuel market and the broader region.

The refinery has already commenced shipping products in recent weeks while preparing to ramp up petrol output.

Analysts predict that Dangote’s refinery will influence Atlantic Basin gasoline markets and significantly alter the dynamics of the petroleum trade in West Africa.

Reuters recently reported that the Dangote refinery has the potential to disrupt the decades-long petrol trade from Europe to Africa, worth an estimated $17 billion annually.

With a configured capacity to produce up to 53 million liters of petrol per day, the refinery is poised to meet a significant portion of Nigeria’s fuel demand and reduce the country’s dependence on imported petroleum products.

Aliko Dangote, Africa’s richest man and the visionary behind the refinery, has demonstrated his commitment to revolutionizing Nigeria’s energy landscape. As the Dangote refinery continues to scale up its operations, it is poised to not only bolster Nigeria’s energy security but also emerge as a key player in the global refining industry.

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