Oil & Energy
N967m Debt: Court Freezes Firm Accounts
Justice Chuka Austine Obiozor of the Federal High Court, Lagos, has ordered all banks in Nigeria, not to allow an oil firm, Rainfall Oil Supplies and Trading Nigeria Limited and its directors to access its accounts with them, over alleged unpaid debt of N967, 244, 957, 45 million.
The oil firm’s directors affected by the order are: Jamilu Abubakar; Jara Abubakar; Shehu Lawal Kaita and Abdulkadir Gwandu.
The court made the order while granting an exparte application marked FHC/L/CS/1953/2019, filed and argued by Olaitan Adeboye, lawyer to Asset Management Corporation of Nigeria (AMCON).
Justice Obiozor also made an order of mandatory injunction, directing all the banks to produce and furnish the court the statement of accounts of the oil firm and its directors, stating the total outstanding credit in their accounts. The court asked the oil firm to produce and furnish the court the opening documentations which includes mandate card, Know Your Customer Card and other relevant documents of the defendants at the commencement of financial transaction.
Furthermore, the judge also made an order mandating the banks to take measure restraining the fifth defendant, Abdulkadir Gwandu, his agents, servants or proxies from relating to bank verification number 22155238420.
Justice Obiozor stated that the orders will subsisting pending the hearing and determination of debt recovery suit brought against the oil firm and its directors by AMCON.
Some of the banks affected listed in the application are: First City Monument Bank Plc (FCMB), First Bank of Nigeria PLC, Guaranty Trust Bank Plc (GTB), Union Bank of Nigeria Plc United Bank for Africa Plc (UBA), Zenith Bank Plc, Citibank Nigeria Limited, Ecobank Nigeria Plc, Heritage Banking Company Limited, Keystone Bank Limited, Polaris Bank Limited (successor to Skye Bank Plc)
Stanbic IBTC Bank Plc and 15 other banks
AMCON in an affidavit deposed to by its Credit Officer, David Funsho George, averred that in pursuit of the indebtedness of the oil firm, which was bought over, the AMCON wrote two different letters of Demand dated February 18, 2016 and November 23, 2016 respectively, to the oil firm none of which was favourably responded to. And that the inability of the AMCON to make recovery despite the above lead to the engagement of the consortium of Olaitan Adeboye and Co as Asset Management Partners.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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