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We Never Lied About Milost’s $1bn Deal – Unity Bank

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Unity bank - Investors King
  • We Never Lied About Milost’s $1bn Deal – Unity Bank

Unity Bank Plc has said it never lied about the $1bn investment hitherto planned by Milost Global Incorporated, and that the “Term Sheet” dated September 4, 2017, which was said to have been executed, was submitted by Milost for discussion purpose only.

The bank informed its shareholders and other stakeholders that it made the move to open discussion with Milost following various regulators’ advice to the bank in recent times on the need to shore up its capital base, adding that the bank with the mandate of its shareholders had engaged in series of discussions and engagement with prospective “value-plus investors”.

The lender, in a document filed with the Nigerian Stock Exchange on Thursday, insisted that, “All through these engagements, the bank has been properly guided by the extant regulations concerning capital raising and equally made the process open to all prospective investors.”

It added, “The Term Sheet dated September 4, 2017 said to have been executed was a proposal submitted by Milost Global Incorporated for discussion purposes only and not a commitment by the parties. No definitive documentation governing the proposed financing was executed.”

The bank said Milost was one of the prospective investors introduced to it (the bank) by a local entity called Mayo BV, adding that it was not unusual that the introduction and expression of interests would involve some level of preliminary discussions and exchange of non-binding documentary communications between the intending parties towards establishing mutual foundation on which the transaction contemplated would be initiated

The document read, “It is in relation to the preliminary discussions that courtesy visits were exchanged between representatives of Milost and the bank in 2017 and early 2018. The bank’s Managing Director/Chief Executive Officer was in New York in October 2017 for other engagements and decided to visit Milost and verify the firm’s address as well as put a face to the officers of Milost that have been engaging the bank via telephone and emails.

“A brief meeting was held and discussions were around the dynamics of Milost proposal to Unity Bank Plc, and socialisation of the policies and regulations around equity investment in Nigeria. The bank did not at any time suggest or agree to move its listing from the NSE to the United States of America as falsely reported.

“There was no agreement whatsoever with Milost Global alluding to the acquisition of 60 per cent of Unity Bank shareholding.

“Also, there is no iota of truth in the allegation that the bank had executed a binding commitment agreement. The bank’s position is on the premise that a document prepared by Milost and which the bank acknowledged merely contained the suggested terms and conditions on which Milost was planning to consider its possible participation in the capital funding of the bank.

“As stated in our previous correspondence, the bank through the mandate of its board and shareholders, has been involved in series of preliminary engagements with several prospective investors including Milost, but the bank did not execute a binding definitive agreement with Milost. It is therefore a misnomer for anyone to claim that the bank issued a false statement relative to the nature of the communication between Milost and the bank.”

According to Unity Bank, the nomenclature “Commitment Letter” was adopted by Milost in its communication to buttress its seriousness to nproceed with the transactions subject to relevant compliance requirements.

As regards threat mails allegedly received by Milost, the bank maintained that such mails did not emanate from it while also expressing its inability to verify such allegation.

The lender said, “Considering that Milost and the bank were only still engaged in preliminary discussions, which must necessarily be subjected to relevant regulatory, statutory and corporate governance compliance parameters before such discussions could become elevated to the level of a binding commitment agreement, the issue of termination of the transaction does not arise.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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New Website Unveiled by FG for Pay-Later CNG Conversion to Cut Transport Costs

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The federal government has unveiled a website that offers a pay-later option for commercial and private car owners looking to convert their petrol-powered vehicles to Compressed Natural Gas (CNG).

This was in response to the incessant increase in transportation fares following the removal of the fuel subsidy.

According to the Presidential Compressed Natural Gas Initiative (PCNGi) the initiative will help ease transportation costs and encourage more transporters to embrace CNG.

In a post on X, the National Orientation Agency (NOA) revealed that this initiative ensures a hassle-free experience for CNG users through an easy online application and a quick approval process.

“Switching to Compressed Natural Gas (CNG) is now more accessible than ever. With flexible payment plans tailored to fit your budget, transitioning from petrol to CNG has never been smoother or more affordable. These payment options allow you to convert your vehicle now and pay later with affordable monthly installments at competitive rates.” NOA stated.

The installment payment option aims to achieve the federal government’s projection of a 30-40% fare reduction as more motorists adopt this initiative.

In addition to the distribution of 2,000 CNG-powered tricycles among youths in the transportation sector across Nigeria, the pay-later option is intended to encourage more people to adopt CNG, thereby providing affordable mobility options.

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Nigerians Fear Increase in Fake Products as NAFDAC Officials Commence Indefinite Nationwide Strike

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There are indications that fake producers of consumables and other items across the country may have a field day following an industrial action embarked upon by workers of the National Agency for Food and Drug Administration and Control (NAFDAC).

Investors King gathered that the nationwide strike which started on Monday is indefinite and nationwide.

The decision of the staff of the agency to down tools followed the expiration of a 14-day ultimatum issued to their management.

The decision to shun work was confirmed after a congress of NAFDAC staff convened on Friday, October 4, 2024 over unresolved issues.

The striking workers, under the directive of the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC) have been instructed to withdraw all services and vacate offices.

They were also ordered to remove personal belongings as the strike began.

The demands of the staff include a review and re-evaluation of the 2024 promotion examination results, which currently reflect a pass rate of just 35%.

The union is pushing for a minimum benchmark of 80% for this year and future exams. Another key demand is the settlement of salary arrears for employees hired in 2022 among others

In a statement signed by Secretary of the Association, Ejor Michael, the union accused NAFDAC management of ignoring their grievances, calling the inaction insufferable.

The staff have vowed to continue the strike until all demands outlined in their communiqué are met.

NAFDAC, which plays a critical role in regulating Nigeria’s food, drug, and pharmaceutical industries, is expected to face significant operational disruptions as a result of the industrial action.

Before now, there had been public outcry over the increase in fake products as Nigerians called out the agency and tasked it to be more proactive.

They expressed fear that there is a tendency that manufacturers of fake products would have ample opportunities to saturate the markets with dangerous products as those who would tackle them are now on strike.

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27.75% Interest Rate Painful but Necessary – CBN Gov Cardoso

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Interbank rate

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has described the recent increase in the Monetary Policy Rate (MPR) to 27.25% as a painful but necessary move.

Cardoso made this known in Lagos, during his address to members of the Harvard Club of Nigeria on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”.

Investors King reported that on September 24, 2024, the apex bank announced another increase in its Monetary Policy Rate (MPR) from 26.75 percent to 27.25%

The decision was reached during the Monetary Policy Committee (MPC) meeting chaired by the CBN Governor.

However, while delivering his speech in Lagos, the CBN boss sympathized with borrowers highlighting the pain the new interest rate will heap on them.

According to Cardoso, the bank’s decision to raise the interest rate was a bold move to reduce excess money in circulation and control inflation effectively.

He emphasized the need for Nigeria to look beyond short-term comfort and strive to secure long-term stability.

Cardoso reaffirmed the CBN’s commitment to rebuilding public trust in the institution.

He said, “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation.

Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these 

“Leading through challenging times means avoiding the temptation to take on too many initiatives. The Central Bank must focus on its core mandate—price stability. It is easy to become distracted by various political and economic pressures, but as a leader, one must prioritise.”

“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. 

“Our decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in this understanding.  

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets.”

Meanwhile, The Manufacturers Association of Nigeria (MAN) had criticized the interest rate hike by the Central Bank of Nigeria (CBN).

The Director General of MAN, Mr. Segun Ajayi-Kadir, made the association’s position known in a statement titled ‘Reaction of MAN on the Report of MPC Meeting on September 23-24, 2024’.

MAN noted that with the higher interest rate, the cost of production will increase.

According to him, the impact of the increase goes beyond the manufacturers, it will stifle investment opportunities.

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