E-Financial
Court Sets October Date in Suit against Zenith Bank over Alleged N6.4Bn Illegal Charges
Justice Ayokunle Faji of the Federal High Court, Lagos, has fixed October 6, for adoption of final written addresses in a suit filed by Mr. Olushola Anthony Adejuyigbe, a Nigerian independent oil marketer, against Zenith Bank Plc.
Adejuyigbe alongside his company, Tonique Oil Services Limited, sometimes in 2018, dragged Zenith Bank Plc before the court over alleged illegal and excessive charges to the tune of N6,441,369,617.73.
Adejuyigbe and his company in the suit marked FHC/L/CS/1584/2012, through Mr. Lanre Ogunlesi (SAN), his lawyer, in his amended statement of claim filed before the court narrated that in the course of its business activities his company, Tonique Oil Services Limited obtained several credit facilities from Zenith Bank PLC while he pledged three of his properties as securities for the loan facilities.
Adejugbe also stated that three different transactions leadings to this litigation occurred in his company’s current account whereby excess and illegal interest and charges were discovered.
And that upon discovery of the said charges, the company demanded for a reversal but the bank bluntly refused.
He also stated that a forensic accounting firm was engaged to scrutinize and analyse his company’s account and it was then discovered that between August 2006 and December 2013, excess interest and charges on the company by Zenith Bank Plc as accumulated to the tune of N1,842,471,801.99.
Adejugbe further stated that by a letter dated February 19, 2008, Zenith Bank granted his Company commercial paper facility of N2,568,644,276.09, to finance the purchase of 30,000MT of Petroleum products, but N2,501,270 was credited into the company’s account.
He however stated that instead of Zenith Bank financing the purchase of the 30,000 MT of Petroleum products for the company as per letter of offer, Zenith Bank diverted the entire sum of N2,501,270 for the purchase of its own shares during the bank’s Initial Public Offer (IPO), a conduct the plaintiffs described as unethical, unprofessional and reprehensive.
He also added that out of the sum of N104,363,212.03 assessed as dividends payable on the bank’s shares only N42,173,498.43 million was credited into the company’s account leaving outstanding balance of N62,169,713.60.
He added that the bank’s shares purportedly bought by his Company with the facilities granted by Zenith bank were managed by the bank so much that the bank eventually liquidated the shares after the value has nose dived and depreciated.
He also stated that another activity on his Company’s current account with Zenith Bank, was the sale and purchase of a property in Port Harcourt, Rivers State, that belong to one of the shareholders/customers of the bank who needed to clean up some of his obligations to the bank.
And that it was the bank who introduce his company to the shareholders 50,000 square meters of land out of which the company bought 20,000 square meters for the purpose of expanding its business earnings.
He averred that to facilitate the purchase of the land, Zenith Bank offered the company a term loan of N500,000 and it was part of understanding of the company and the bank that after the purchase of the land, the bank will finance the company’s Tank farms to be built thereon.
He further stated that after the purchase of the land, Zenith Bank took possession of the title documents of the land as collateral while reneged on the promise and understanding to finance his Company’s tank farm on the land and since 2008 the land had been under the management of the bank and the same had been lying fallow.
In this circumstance, the plaintiffs contended that Tonique Oil Company is not indebted to Zenith Bank and any alleged indebtedness could only have been arisen as a result of the unconciousable and illegal acts of the bank’s officials in debiting the company’s account with astronomical and spurious interest charged.
Consequently, the plaintiffs contended that such interest charges are illegal and they contravened the Central Bank of Nigeria Monetary Credit and Foreign Exchange/Trade guidelines.
The plaintiffs financial consultant computed other charges that were passed into the account of the company, base on relevant policy circulars, guide to bank charges of Central bank of Nigeria and discovered that the bank excessively overcharged the company on interest on overdraft, COT, and VAT on COT, Management Fees, upcountry transfer fees, interest on commercial paper, foreign exchange purchases and letter of credits.
Consequently, the plaintiffs are contending that they are not indebted to the bank rather the bank has overcharged them to several billions of Naira.
Rather the plaintiffs urged the court to declare that Zenith Bank being a bank within the supervisions and control of CBN cannot charge interest on any facilities granted to them beyond the official approved policy rate of the Central Bank of Nigeria.
They are also urged the court not only to restrain Zenith Bank from selling their property pledged as securities for the loan but to also compel it to pay his company the sum of ₦6,441,369,617.73 billion, being the total excess charges debited into the company’s account by the bank and interest on the same amount at the rate of 21% per annum from the date of judgement of the court until final liquidation.
However, Zenith Bank in its statement of defence with statement on oath sworn to by Mr Vincent Ohanugo, senior assistant manager internal control and Audit Department of Zenith Bank, and filed by Mr. Ajibola Lawal-Akapo, its lawyers, and others, denied almost all the plaintiffs’ claims and stated that the company was granted several loans which include: ₦2.5 billion regular commercial paper; $36 million import finance facility; $6, 648 million commercial paper/usance facility; $9million import finance facility via usance facility and $11million short term import facility of ₦500 million.
The bank also stated that the plaintiffs authorised Zenith Registrar Plc to take steps to purchase the shares of the bank on is their behalf, while also pledged 3.5million and 17,154,300 units of the shares respectively in favour of the bank and authorised the bank to sell them to recoup part of the credit facilities the bank granted them, therefore the allegation of unethical conduct, lack of competence and professionalism against it by the plaintiffs was made out of malice, confusions and frustration on the part of the plaintiffs.
The Bank also stated further that it did not enter any understanding with the plaintiffs to finance the construction of tank farm for the company.
The plaintiffs assertion that they are no longer indebted to the bank is a bare denial and therefore challenges the plaintiffs to provide evidence of payment of all the credit facilities availed to them by the bank.
Zenith Bank also stated that the plaintiffs suit did not disclose any cause of actions against it, as the plaintiffs are still indebted to it in the sum of N8, 464, 176, 356.52 billion, as at January 31, 2013.
The Bank therefore urged the court to dismiss the suit for been frivolous and it amounts to abuse of court process.
Meanwhile, Justice Faji upon conclusion of arguments from both parties counsel, on June 28, 2021, adjourned the matter till October 6, for adoption of final written addresses.
NGX has seen a record foreign investor transaction activity, with a 156% YoY increase reaching N744.34. Foreign investors’ transactions on the Nigerian Exchange Limited (NGX) reached a total of N744.34 billion in the first 10 months of 2024, which was an increase by 156 percent Year-on-Year (YoY) when compared to the N291.38 billion recorded in the first 10 months of 2023.
The N744.34 billion foreign investors’ transactions recorded was another all-time high for the Nigerian bourse.
The latest NGX’s “Domestic & Foreign Portfolio Participation in Equity Trading,” for October 2024, revealed that foreign investors contributed about 16.65 percent out of the total transactions of N4.47 trillion reported in the 10 months under review.
The report revealed that foreign investors’ inflow and outflow stood at N344.30 billion and N400.04 billion, respectively.
The CBN recently implemented some reforms in the foreign exchange market aimed at enhancing transparency, compliance, and market stability. These reforms were part of the CBN’s broader strategy to create a fairer, more stable FX market and support economic growth through better monetary policies.
In tandem with these reforms, the CBN has also implemented aggressive Monetary Policy Rate (MPR) hikes, with the goal of curbing inflation and stabilising the naira, a move supported by the International Monetary Fund (IMF).
Domestic investors made up of retail and institutional investors transacted an estimated N3,726.63 trillion worth of stocks in the period under review.
The breakdown showed that domestic retail in 10 months of 2024 transacted N1.909.99 trillion as against N935.78 billion recorded in 10 months of 2023, while domestic institutional transacted N1.816.64trillion in 10 months of 2024 from N1.706.23 trillion in 10 months of 2023.
According to the report, the total transactions at the nation’s bourse increased marginally by 1.97percent from N493.01 billion (about $307.84 million) in September 2024, to N502.73 billion (about $300.05 million) in October6 2024.
“The performance of the current month when compared to the performance in October 2023 (N220.94 billion) revealed that total transactions significantly increased by 127.54per cent.
“In October 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 82 per cent,” the report stated.
“A further analysis of the total transactions executed between the current and prior month (September 2024) revealed that total domestic transactions increased by 0.81per cent from N451.60 billion in September 2024 to N455.27 billion in October 2024.
“Similarly, total foreign transactions increased by 14.61 percent from N41.41 billion (about $25.86 million) to N47.46 billion (about $28.33 million) between September 2024 and October 2024.”
Federal Government has hailed the contributions and remarkable achievements of Africa’s fastest-growing financial institution, Moniepoint Inc in the financial technology sector, its commitment to advancing financial inclusion, and its ongoing collaborations with law enforcement agencies to combat financial fraud.
This was stated by the Vice President, Senator Kashim Shettima, when he received the Moniepoint’s leadership team led by its Chief Executive Officer, Tosin Eniolorunda, on a courtesy visit at the Presidential Villa. The Moniepoint delegation included, Babatunde Olofin, MD Moniepoint Microfinance Bank; Didi Uwemakpan, Vice President, Corporate Affairs, Moniepoint Inc; Ross Strike, SVP, Investor Relations and M&A; Efemena Ogie, Head of Partnerships; Abdulmumin Tijjani, Regional Manager, North West; and Ravi Sharma, Partner, Lightrock Global – a global private equity and investors in Moniepoint Inc.
During the course of the visit, CEO, Moniepoint Inc, Tosin Eniolorunda expressed gratitude to the Vice President for making time to meet with the team, underscoring the administration’s dedication to digital innovation and financial inclusion.
He emphasized Moniepoint’s commitment to Nigeria’s financial ecosystem, stating that the fintech giant has grown into Africa’s latest unicorn this year, a testament to its resilience and innovation.
He detailed Moniepoint’s contributions to financial inclusion, including providing digital banking solutions to millions of Nigerians, particularly underserved communities, and empowering small and medium-scale enterprises (SMEs).
Highlighting their robust collaboration with law enforcement agencies such as the Nigeria Police Force, the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC), Mr. Eniolorunda reiterated Moniepoint’s commitment to using intelligence-driven technology to fight financial fraud and strengthen trust in the digital payment system.
“At Moniepoint, we are big believers in driving collaborations across the entire eco-system and this is premised on collaboration being the cornerstone of progress.
“Our engagement here underscores our intentionality to enhance government to business relationship in a way that powers the dreams of millions of many more Nigerians.
“Together, we can unlock opportunities, transform lives, and build a more inclusive economy for all”, Eniolorunda said.
The Vice President congratulated the Moniepoint team on achieving unicorn status, lauding their innovative approach to leveraging technology to solve financial challenges.
He acknowledged the company’s impressive growth trajectory, its workforce of over 3,000 employees, and its contribution to the country’s vision of building a $1 trillion economy.
In his remarks, the Vice President highlighted the diversity within Moniepoint’s team, describing it as a “kaleidoscope of colors” and reflecting the beauty of Nigeria’s multicultural and multi-regional identity.
He was particularly pleased with the inclusion of individuals from various regions and backgrounds, including a notable representation of women in leadership and operational roles.
While celebrating Moniepoint’s achievements, the Vice President emphasized the need for stronger auditing measures to prevent misuse of the platform, especially by fraudsters and criminal elements. He urged Moniepoint and other fintech platforms to remain vigilant and proactive in addressing these challenges.
He acknowledged the company’s impressive journey over the past five years as Moniepoint and their earlier contributions as a software solutions company for banks, applauding their resilience and innovation.
In closing, the Vice President encouraged Moniepoint to continue expanding its global footprint, referencing his ongoing support for similar initiatives such as Amal Hassan’s Outsource to Nigeria project.
He assured the Moniepoint team of his unwavering support, promising to be their “chief promoter” in advancing the brand’s visibility on the global stage.
It will be recalled that Moniepoint partnered with the Corporate Affairs Commission to formally onboard over two million businesses while targeting 30m businesses over the next five years.
It also launched Nigeria’s Informal Economy Report in July this year, in conjunction with SMEDAN and the Federal Ministry of Industry, Trade and Investments to provide a policy thrust for advancing Nigeria’s informal economy in the light of its huge contributions to the nation’s GDP.
The courtesy visit marks another milestone in the partnership between the Nigerian government and private sector innovators like Moniepoint, who are key players in the administration’s drive to build a robust digital economy and foster financial inclusion across the nation.
NOVA Bank has achieved a major milestone in its commitment to safeguarding customer data and digital operations by attaining the globally recognized ISO 27032 Cybersecurity Standard certification.
This significant achievement positions NOVA Bank among the elite financial institutions in Nigeria with such a distinction.
The ISO 27032 certification focuses on fortifying cybersecurity measures, ensuring robust protection for data, systems, and online transactions amid an ever-evolving cyber threat landscape.
In addition to this achievement, NOVA Bank is already certified in ISO 27001 for Information Security Management and BCMS 22301 for Business Continuity Management, further underscoring its dedication to operational excellence and security.
Speaking on the achievement, Acting Managing Director and CEO of NOVA Bank, Mrs. Chinwe Iloghalu, described the certification as a pivotal moment for the Bank and its customers.
“This certification underscores NOVA Bank’s unwavering dedication to maintaining the highest global standards in cybersecurity. As we continue to innovate with customer-centric retail products, cybersecurity remains at the heart of our operations.
“Our customers can rest assured that their data and transactions are protected by some of the most advanced security frameworks in the industry.
“Trust is built on security, and NOVA is committed to providing a secure, reliable, and innovative banking experience,” Mrs Iloghalu stated.
The Bank’s Executive Director for Operations and Information Technology, Dr. David Isavwe, who also serves as the President and Chairman of the Board of Trustees for the Information Security Society of Africa, Nigeria (ISSAN), emphasized the broader implications of the certification.
“The ISO 27032 certification highlights NOVA Bank’s proactive approach to addressing cybersecurity challenges. It demonstrates our readiness to protect against evolving threats and our ability to adapt to the dynamic landscape of digital banking.
“This certification reinforces our commitment to delivering secure and uninterrupted services to our valued customers,” Dr. Isavwe remarked.
This milestone aligns with NOVA Bank’s overarching strategy of integrating cutting-edge technology with its trademarked Phygital model—seamlessly blending physical and digital banking experiences, while maintaining an unwavering focus on customer trust and satisfaction.
As the bank prepares to launch a series of innovative retail banking products, this certification highlights its dedication to prioritizing cybersecurity, ensuring a secure and seamless banking experience for all its customers.
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