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Honeywell Flour Mills Emerges Victorious in Landmark Legal Battle: Court Orders Ecobank Nigeria to Pay N72.2bn in Damages

The ruling, handed down by Justice Mohammed Liman on Tuesday, brings an end to a long-standing and complex legal dispute between the two parties.

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The Federal High Court in Lagos has finally ruled in favor of Honeywell Flour Mills as Ecobank Nigeria was ordered to pay a staggering N72.2bn in damages.

The ruling, handed down by Justice Mohammed Liman on Tuesday, brings an end to a long-standing and complex legal dispute between the two parties.

The origins of the legal battle date back to November 2015 when Ecobank secured ex-parte orders from the Federal High Court, freezing Honeywell Flour Mills’ assets, including all its bank accounts in a drastic move that nearly crippled the company as management was unable to meet obligations to suppliers, process Letters of Credit, or collect payments from distributors.

After enduring weeks of trying to run their business without access to their bank accounts, Honeywell Flour Mills sought relief from the court, eventually leading to the partial lifting of the asset freezing orders.

In March 2016, the Court of Appeal further overruled the ex-parte orders, allowing Honeywell Flour Mills to regain full access to its accounts without restrictions. The Court of Appeal stated that Ecobank’s initial application to freeze the assets should not have been granted in the first place.

Ecobank, dissatisfied with the ruling, appealed to the Supreme Court to overturn the decision of the Court of Appeal. However, in July 2018, the highest judicial authority upheld the Court of Appeal’s judgment, declaring that ex-parte injunctions were not permissible in winding-up petitions.

Following the Supreme Court’s verdict, Honeywell Flour Mills demanded compensation from Ecobank for the losses incurred due to the baseless ex-parte orders. Seeking damages in excess of N72bn, the company argued that the Supreme Court’s determination of the improper nature of the bank’s application rendered it frivolous.

In response, Ecobank contended that Honeywell Flour Mills failed to comply with the conditions outlined in their undertaking and thus should not be entitled to damages.

However, after careful examination of the evidence and thorough deliberation, the court sided with Honeywell Flour Mills, granting all four reliefs sought, culminating in the substantial N72.2bn damages award.

 

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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NNPC Helicopter Incident: Three Bodies Found as Rescue Missions Continue

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The Nigerian National Petroleum Corporation (NNPC) announced on Thursday that a helicopter en route to the NNPC FPSO, NUIMS Antan, had disappeared.

According to the NNPC, the helicopter with registration number 5NBQG took off from the NAF base in Port Harcourt at around 11:22 am before losing contact after departure.

The helicopter operated by East Winds Aviation was carrying eight people, six passengers and two crew members.

On Thursday, the NNPC confirmed the loss of communication with the aircraft, adding that the Ministry of Aviation had been informed immediately and a search and rescue team dispatched to the area.

Olufemi Soneye, Chief Corporate Communications Officer for NNPC explained that the organization is committed to the ongoing rescue efforts and extended heartfelt prayers to the families of the victims.

In the press statement posted on its official X @nnpclimited, NNPC said three bodies have been recovered while the search continues to know the fate of the remaining five individuals on board.

As families await further news, the nation remains hopeful that more survivors can be found. The NNPC has assured the public that it will provide regular updates as the search progresses.

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Meta Fires Employees For Using Office Free Meal Vouchers to Buy Household Items

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The parent company of Facebook, Instagram, and WhatsApp, Meta, has allegedly relieved about 24 staff members at its Los Angeles office of their jobs.

The affected staff were accused of using their $25 (£19) meal credits to buy items such as toothpaste, laundry detergent, acne pad and wine glasses.

It was gathered that the dismissals followed an investigation that revealed the employees had been exploiting the system, including sending food home when they were not physically present at the office.

One of the terminated employees was an unnamed worker earning a $400,000 salary.

Another sacked employee anonymously shared on the messaging platform Blind, explaining how she and her colleagues maximized their dinner credits to buy other necessities when they could get food elsewhere.

The breach was discovered as part of the human resources procedure even though one of the workers admitted to it.

According to reports, employees who occasionally bent the rules received warnings but retained their positions.

Free meals have long been a benefit for employees of major tech firms like Meta, founded by Mark Zuckerberg.

Typically, staff at larger offices, including Meta’s Silicon Valley headquarters, enjoy complimentary meals from on-site canteens.

Employees at smaller locations receive daily food credits, redeemable through delivery services like UberEats and Grubhub, with allowances of $20 for breakfast, $25 for lunch and $25 for dinner.

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Flour Mills of Nigeria to Invest $1 Billion in Expansion and Restructuring Over Four Years

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Flour Mills of Nigeria Plc, a Nigerian diversified agribusiness company, has announced plans to invest $1 billion over the next four years to expand its facilities and restructure the company.

Chairman John Coumantaros, in an interview on Tuesday, said the new funding is about “doubling down on investment in Nigeria.”

This investment will further support President Tinubu’s reform efforts at a time when companies like Diageo Plc and Unilever Plc are exiting or reducing their exposure to the West African nation.

Since coming to power in May 2023, President Tinubu has introduced a series of reforms from allowing the naira to free float to fuel subsidy removal to make the country more attractive to investors and steer it away from fiscal collapse.

According to Coumantaros, $500 million of the total investment will go into its sugar operations in Niger state to boost production from the current 100,000 tons to over 400,000 tons a year.

An additional $100 million will be allocated to a cassava-processing factory to end imports of starch from the tuber and expand its breakfast cereal offerings.

The 64-year-old company will also undergo reorganization following an offer from Excelsior Shipping Company Ltd. last month to buy out minority shareholders at 70 naira per share.

The company plans to restructure its more than 22 units into five individual companies, Coumantaros said.

“We want to be able to attract technical and financial partners to help us grow our sugar operations and food business. We have a lot of ambitious plans for investment and expansion.”

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