Connect with us


Loan Default: AMCON Takes Over IBEDC




Further to the judgment of the Federal High Court on the 8th of September 2021, the Asset Management Corporation of Nigeria (AMCON) has announced its takeover of the Ibadan Electricity Distribution Company (IBEDC).

This is following the electricity distribution company’s default in a loan servicing agree­ment executed with Polar­is Bank.

“AMCON has been ap­pointed receiver/manager over all the Assets of In­tegrated Energy Distribu­tion and Marketing Lim­ited as stipulated in the instruments executed in favour of AMCON by vir­tue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dat­ed 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties”, a statement from AMCON reads.

AMCON further revealed that it has appointed Osayaba Giwa-Osagie to take over the entire undertakings on the IBEDC, including the assets, shares and interests in related companies and entities, and also monies kept in any of the 25 banks in Nigeria.

Investors King gathered that AMCON’s takeover might also not be unconnected to some crisis inside the power company, a development which has reportedly affected its ser­vice delivery to customers.

IBEDC’s Chief Operating Officer (COO), Engineer John Ayodele however allayed the fears of the IBEDC staff.

“I hereby wish to inform all staff that there is no cause for alarm. We are assured of job security which entails our position/duties in the company, being entitlements to our salaries and other benefits etc.”, he said.

Investors King recalls that the IBEDC, during a stakeholders’ meeting in May 2021 had disclosed that it secured N4.2billion from the Central Bank of Nigeria (CBN) to improve power supply to its numerous customers in Ogun State.

According to Ayodele, the facility would be channelled into building lines to improve power/electricity supply to the communities. He had also revealed that 80 percent of the money collected by IBEDC goes for other services, adding that the company has lost over N3billion in estimated billing.

Continue Reading


Farmers Are Refusing To Pay Back Loans – CBN Cries Out




The Central Bank of Nigeria (CBN) has cried out over the refusal of the majority of farmers who benefited from the Anchor Borrowers’ Programme (ABP) to repay their loans.

CBN Development Finance Officer, Mr Sadeeq Ajayi revealed this at the Agribusiness Innovation Clinic.

He claimed that the majority of the beneficiaries regard the loan as their part of the national cake in his speech entitled Fostering Innovation and Collaboration Across the Agricultural Value Chain, which was organized by the Global Alliance for Improved Nutrition (GAIN).

He urged farmers who had delayed their agricultural loans to repay them, claiming that the CBN’s failure to retrieve the loans from defaulting farmers had jeopardized the plan and prohibited other farmers from using it.

“While the Anchor Borrowers’ Programme had recorded some level of success, the failure of farmers to repay the loans has, however, been a major setback.

“Many of the farmers refused to pay back their loans due to the misconception that since CBN is the lender, the loan is a ‘national cake’ and they do not have to pay back what they consider theirs as citizens.

“This attitude has made it difficult for other farmers, who also want to access the loan, to benefit from the scheme,” he said.

In 2021, about 2.85 million farmers benefitted from the Anchor Borrowers Programme. Investors King gathered that N554.63bn was disbursed, of which N61.02bn was allocated to 359,370 dry season farmers.

In its October monthly report, the CBN also revealed that the Anchor Borrowers Program disbursed N1.9 billion to 2,521 farmers to cultivate 8,963 hectares of land through three participating financial institutions.

Cassava, cotton, fish, groundnut, maize, poultry, rice, soya beans, wheat, cattle, sorghum, ginger, castor seed, sesame, tomato, cocoa, yellow pepper, oil palm, cowpea, and onion were among the crops cultivated on 3,097,834 hectares, according to the report.

ABP is an agricultural loan scheme launched by the federal government in 2015 through the Central Bank of Nigeria (CBN) to provide loans (in kind and cash) to smallholder farmers in order to increase agricultural production, create jobs, and reduce food import bills in order to conserve foreign reserves.

Continue Reading


FCCPC, ICPC and NITDA Cracks Down on Illegal Online Lenders Offices



Loan Shark

The Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr Babatunde Irukera, disclosed that he led a team of investigators and enforcement officers to nab alleged operators of illegal online lending and reputation-damaging loan recovery platforms on Friday, 11th March.

The FCCPC carried out this operation alongside the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the National Information Technology Development Agency (NITDA).

It was also gathered that the operation was mostly targeted at the businesses that were located in Lagos as Mr Babatunde revealed that some of these illegal lenders were located in Ikeja Lagos. The illegal lenders include: GoCash, Easy Credit, Speedy Choice, Kash Kash, Easy Moni, Sokoloan and All Cash.

Babatunde also revealed that his team resorted to using force to gain access to Sokoloan who refused to let the agency enter its offices which is stretched to two floors at an office building 21 Opebi Road. The chairman also disclosed that the business has over 5,000 employees who received nothing less than N50,000 monthly.

Investors King also gathered that the FCCPC had been gathering information about these illegal lenders as far back as the 2020 lockdown when the novel Coronavirus peaked globally.

Speaking about the raid, the FCCPC vice-chairman said: “Sometime at the end of last year after gathering quite some information, the FCCPC engaged other agencies including the Economic and Financial Crime Commission (EFCC), ICPC, National Human Right Commission, Central Bank of Nigeria, and Nigerian Communications Commission, to create a joint regulatory task force to look into these businesses. The key two things that were subject of concern, were, what seemed to be naming and shaming or violation of people’s privacy with respect to how these lenders recover the loans.

The vice-chairman also spoke about how these lenders have disregarded people’s privacy when they are trying to recover loans.

Speaking to newsmen, he said: “Secondly sometimes the interest factor, and the way it was calculated, showed the violation of ethical principles of lending. So we started an investigation trying to determine the location of these people but that has been a very difficult thing. We did that for several months and some of them have moved from one place to the other and we have to do reconnaissance on this place almost on a daily basis for months.  We also found out that many of these companies are not Nigerian companies, they don’t have an address in Nigeria and they are not registered in Nigeria with the Corporate Affairs Commission and they do not have any license to do their business. 

“Essentially what they have is an App, and so we started gathering more information, we engaged the public and people who have been their victims for information. And as we got more information we had enough to present to the court to convince the court to issue a warrant for us to proceed with an investigation into a search and seizure. Late last month, a court issued a warrant, and between then and now we were preparing a sting operation which you are seeing today because we wanted to be sure that we are hitting at the place where we are going to get many of them.”

Babatunde also revealed that they have also filed a petition to Google Play Store and Apple App Store to discontinue the Apps of these businesses from their stores to avoid more victims.

Continue Reading


Private Sector Loan From Nigerian Banks Grew by N5.58 Trillion in 2021– CBN



Banana Island

The Central Bank of Nigeria, CBN has disclosed that private sector loans from Nigerian banks increased by N5.58 trillion in 2021 ending as it recorded N35.73 trillion. 

Investors King gathered that in December 2020, the private sector bank credit was N30.15 trillion. According to CBN data, there was a consistent rise in the private sector monthly loan throughout the year 2021 except in February.

“The Nigerian banking sector’s loan to the private sector increased by N5.1 trillion (16.67%) between January and December 2021.

“A thorough examination of the monthly credit value reveals a steady rise throughout the year, with the exception of February, when credit to the sector fell by N100 billion. The figure dipped to N30.5 trillion in February, down from N30.6 trillion in January,” it stated.

Investors King learnt that the government also had access to increased funds from Nigerian banks even as the private sectors received theirs.

Report has shown that the government’s credit rose from N12.4 trillion as recorded in 2020 to N13.73 trillion in December 2021 which is an increase of N1.33 trillion.

The CBN’s policies to enhance the nation’s economy have aided the private sectors and government agencies’ accessibility to loans.

With the aim of ensuring economic stability following the recession in the nation and effects of the Covid-19 Pandemic in the previous year, the Central Bank intensified easy access to credit facilities.

Further highlights from the CBN data revealed that in 2021, currency in circulation grew by N1.15 trillion in 2021 to N3.33 trillion as of December 2021.

“The apex bank maintained the country’s benchmark interest rate (MPR) at 11.5% all through 2021 and has started the new year with the same approach, retaining the cash reserve ratio at 27.5% and liquidity ratio at 30%.

“Bank loans to the private sector, on the other hand, increased to N31.4 trillion in March, then to N31.9 trillion in April, N32.1 trillion in May, and N32.6 trillion in June.

Credit to the sector increased to N32.8 trillion in July, continuing the upward trend. In August, it reached N33.4 trillion, followed by N34.39 trillion in September, N35.3 trillion in October, and N35.7 trillion in November,” the report said.

Continue Reading