Business

UBA Takes Over Stallion Group’s Assets Following N156bn Debt

Published

1 year ago

November 15, 2023

The United Bank for Africa (UBA) Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano.
This was sequel to an order given by a Federal High Court in Lagos, as a result of N156,026,032,804.84 debt suit, instituted against Stallion group.
The bank’s Receiver Manager, Romeo Michael, and court bailiffs protected by the police on Friday, in the three cities, executed the interim orders made by Justice Akintayo Aluko on October 20, 2023.
The Judge made the order after hearing Temilolu Adamolekun, who appeared with Mohammed Usman, move the motion ex-parte as counsel for the plaintiff/applicants, supported by an affidavit in support deposed to by Mr. Anthony Chilaka, in the suit.
In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties.
The order will last pending the hearing and determination of the motion on notice, which the court adjourned till November 20, to hear.
The affected assets include mortgaged property known as “all that piece or parcel of land together with any building thereon” at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State.
“Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, KM17, Lagos Badagry Expressway, Lagos State and No. 54, Challawa Industrial Estate, Kano State, Nigeria”.
The 1st to 4th plaintiff/applicants in the suit are UBA Plc, UBA Cameroon SA, Cote D’Ivoire SA and Romeo Ese Michael.
The 1st to 11th defendants/respondents are Stallion Nigeria Limited (In Receivership), Von Automobile Nigeria Limited, Popular Farms And Mills Limited, Havana Nigeria Limited.
The other defendants are KRBL Food Industries Limited, Qingqi Motorcycle Manufacturing Limited, Stallion Auto Keke Limited, Stallion Motors Limited, The Honda Place Limited, Yokohama Construction Limited and Mr. Sunil Vaswani.
The plaintiff/applicants also listed all the commercial banks in Nigeria and Kuda Microfinance Bank, Moneypoint Microfinance Bank, Piggyvest technology Limited, Cowrywise Financial Technology Limited, Opay Digital Services, the Federal Ministry of Defence and Federal Ministry of Finance as 12th to 44th respondents in a Mareva Order to protect the Res (subject matter) of the suit.
The court further granted an interim injunction restraining the defendants or anyone else, from tampering with, remaining in, selling, leasing, or dealing in whatsoever manner with any of the defendants’ assets/mortgaged properties covered by the order.
It also granted a mareva injunction restraining the 1st to 11th defendants or their agents from dealing with any of the monies standing to their credit in all of their accounts or howsoever, held with the 12th to 41st respondents up to the tune of the N118.6billion or its equivalent in any foreign currency pending the hearing and determination of the motion on notice.
They were also restrained from monies standing to their credit in all of their accounts with the 12th to 41st respondents and also monies standing to its credit in custody of the 1st to 3rd Plaintiffs and their affiliates and subsidiaries in other countries including UBA (Ghana) Limited up to N156b or its equivalent in any foreign currency.

The order also barred the (Federal Ministry of Defence and Federal Ministry of Finance from releasing to the defendants or any of their affiliates, any funds belonging or accruing to any of the defendants, up to N156 billion.

Business

PH Refinery Fully Operational – NNPC

Published

2 hours ago

March 21, 2025

The Tide

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Port Harcourt Refining Company (PHRC) remains operational and continues to produce on-spec refined petroleum products.

Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye, disclosed this in a statement on Wednesday.

Je said: “The Nigerian National Petroleum Company Limited (NNPC Ltd.) wishes to clarify that despite a minor incident at a section of the Port Harcourt Refining Company (PHRC) earlier today, the plant remains operational and continues to produce on-spec refined petroleum products.

“NNPC Ltd assures the public that there is no cause for concern, as all sections of the recently rehabilitated plant are in full operation.”

The company had earlier dismissed reports of an explosion at the Port Harcourt Refining Company in Rivers State. The state-oil company described the report as ‘false’, noting that what occurred at the refinery was a flare incident, which has been contained fully.

Last November, NNPC Ltd. said the Port Harcourt refinery had commenced production after a long period of rehabilitation.

It said the refinery began truck loading of petroleum products on Tuesday, November 26, 2024.

Business

Revenue Mgt: NEITI Wants Improved Fiscal Discipline, Transparency … As FAAC Disbursement Hits Record N15.26trn

Published

3 hours ago

March 21, 2025

The Tide

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for improved fiscal discipline and enhanced transparency in revenue management at all levels of government.

The call is part of recommendations by NEITI in its Federation Accounts Allocation Committee (FAAC) Quarterly Review, which stated that the FAAC disbursed a record N15.26 trillion to the federal, state, and local governments in 2024, reflecting a 43 per cent increase from the previous year.

The FAAC report said FAAC the surge underscores the impact of key fiscal reforms, including fuel subsidy removal and exchange rate adjustments, which significantly boosted oil revenue remittances.

The report, Presented by the Executive Secretary of NEITI, Ogbonnaya Orji, the report attributed the increased disbursements to these policy changes, which reshaped the country’s revenue landscape.

According to a statement by the Acting Director, Communication and Stakeholders Management, Obiageli Onuorah, it assessed the fiscal sustainability of government borrowing and the implications for oil-producing states benefiting from the 13 per cent derivation fund.

A breakdown of the N15.26trillion distributed among the three tiers of government shows that the Federal Government received N4.95 trillion, while state governments collectively received N5.81 trillion, and Local government allocations amounted to N3.77 trillion.

State governments recorded the highest percentage increase, with allocations rising 62 per cent from N3.58 trillion in 2023.

Local government allocations increased by 47 per cent, while the federal government’s share rose by 24 per cent, up from N3.99 trillion in the previous year.

The fourth quarter of 2024 saw the highest quarterly disbursement on record, reaching N4.214 trillion, reflecting the impact of sustained revenue growth and fiscal policy reforms.

FAAC attributed key drivers of the record disbursements to major fiscal reforms implemented by the Federal Government.

It said another factor is the removal of fuel subsidies in mid-2023 eliminated deductions that previously reduced distributable oil revenue, leading to increased remittances to the federation account.

It said exchange rate liberalisation also played a crucial role, as the depreciation of the naira boosted naira-denominated mineral revenues by over 400 per cent.

FAAC further said higher global crude oil prices and improved domestic production contributed to increased earnings from the petroleum sector.

Despite these gains, however, the report warned of inflationary pressures, rising debt servicing costs, and fiscal uncertainty for states heavily reliant on oil earnings.

NEITI emphasised the need for proactive measures to stabilise the exchange rate, curb inflation, and strengthen non-oil revenue sources to ensure long-term economic stability.

State-by-State analysis of the disbursement shows that Lagos State received the highest FAAC allocation in 2024, totalling N531.1 billion, followed by Delta with N450.4 billion and Rivers with N349.9 billion.

Akwa Ibom and Bayelsa States also ranked among the top recipients, with N329.2 billion and N270.4 billion, respectively.

Nasarawa received the lowest allocation of N108.3 billion, followed by Ebonyi with N110 billion and Ekiti with N111.9 billion.

Six states — Lagos, Rivers, Bayelsa, Akwa Ibom, Delta, and Kano — each received over N200 billion, collectively, accounting for 33 per cent of total state allocations.

In contrast, the six lowest-receiving states accounted for only 11.5 per cent.

The report highlighted the widening fiscal disparity between states, noting that Lagos, Delta, Rivers, and Akwa Ibom collectively received N1.49 trillion, a sum more than three times the total allocation of the bottom four states — Kwara, Ekiti, Ebonyi, and Nasarawa — which stood at N442.4 billion.

In terms of debt deductions and fiscal sustainability, debt servicing deductions from state allocations amounted to N800 billion, representing 12.3 per cent of total state disbursements.

Lagos State recorded the highest debt deductions, with N164.7 billion, accounting for over 20 per cent of total deductions.

Kaduna State followed with N51.2 billion, while Rivers and Bauchi also saw significant deductions of N38.6 billion and N37.2 billion, respectively.

The report raised concerns over the debt-to-revenue ratios of many states, particularly those with high debt burdens but lower revenue allocations.

NEITI urged governments to adopt conservative revenue projections to prevent budget shortfalls and improve fiscal management to ensure debt sustainability.

In making other recommendations, NEITI urged authorities to increase savings in the Excess Crude Account (ECA) to mitigate future revenue shocks and to strengthen non-oil revenue generation to reduce dependence on FAAC allocations.

The report also recommended measures to stabilise the exchange rate, curb inflation, and ensure conservative budgeting for crude oil production and pricing.

It further stressed the need for governments to prioritise job creation, poverty reduction, and economic stability while maintaining fiscal transparency in line with Open Government Partnership (OGP) and Extractive Industries Transparency Initiative (EITI) commitments.

NEITI reiterated the importance of leveraging its findings to hold all levels of government accountable for the prudent management of public funds, particularly revenues generated from the extractive industries.

Business

Trans Niger Pipeline In Rivers Resumes After Fire Incident

Published

3 hours ago

March 21, 2025

The Tide

The Trans Niger Pipeline in Bodo Community, Gokana Local Government Area of Rivers State belonging to Renaissance Africa Energy Holdings has resumed operations after a fire incident on Monday.

A company source, which spoke to The Tide’s source on condition of anonymity, said the pipeline was tested and it passed the integrity, saying there was no blast on the facility.

According to the source, “The pipeline is back in operation. First of all, we had no blasts or explosions in our facilities. We had an unauthorised entry from the operations. Then we sent a team there. The team saw that the site had been accessed.

“We got a call, and a team went out and saw that there were attempts at excavation and arson. But of course, the fire had burnt out. They did an inspection, and there was an adjacent pipeline.

“They tested that and it passed the integrity test. I think the operations went through that adjacent pipeline. Operations are ongoing as we speak”.

The TNP transports 450,000 barrels of crude oil per day to the Bonny Export Terminal, using a pipeline network.

Renaissance Africa Energy Holdings just completed the landmark transaction between itself and Shell to acquire the entire equity holding in the Shell Petroleum Development Company of Nigeria.

Reports of an explosion on the pipeline were one of the reasons President Bola Tinubu declared a state of emergency in Rivers State.

Confirming the incident on Tuesday, the Rivers State Police Public Relations Officer, Grace Iringe-Koko, said the fire was noticed on Monday night during a security patrol.

According to her, Renaissance was immediately altered and the company shut down the affected pipeline and activated safety measures.

While saying there was no further threat to residents or the environment, the PPRO revealed that two individuals have been arrested for questioning as part of an ongoing investigation into the cause of the incident.