A Federal high court sitting in Lagos south west Nigeria has adjourned till 10th of December, 2018 for report of settlement or trial if amicable settlement fails, the suit instituted by a

Lagos business man Rev. Chukwuemeka Ngubo and his company Elim Motors Nigeria Limited against Ecobank Nigeria limited for allegedly buying United States Dollar on their behalf at the rate of N475 to one United States Dollar whilst the Central Bank approved rate was at N300 to one United States Dollar as at the time of purchase.

By wrongfully sourcing foreign exchange from the parallel market,the Plaintiffs alleged that Ecobank exposed them to the sum of over N2Billion loss.

By the provision of the Foreign Exchange (monitoring and miscellaneous Provisions )Act, Cap F34,laws of the Federation of Nigeria 2004,Ecobank ought not to have sourced foreign exchange from the parallel market

The plaintiffs further averred that, the action of the bank is in flagrant breach of the Central Bank of Nigeria’s extant rules regulating the conduct of foreign exchange transactions in Nigeria which has adversely affected the credit rating and financial credibility of the company to the benefit of the bank.

According to statement of claim filed before the court ,The Plaintiffs aver that pursuant to the banker-customer relationship between Ecobank Nigeria limited and Elim Motor limited,the bank had, in the past granted Elim Motor limited several credit facilities which the company always repaid as at when due.

The company averred that,it applied for and the bank issued a bank guarantee in the sum of $12million in favour of Credit Trading Company ,through Deutche Bank AG London in the sum of $8,750,000, By the foregoing the plaintiffs aver that, a balance of $3,250,000 was left unutilised.

The loan was secured with the following.
1.lien on cash Collateral of N200 million being held at the bank’s Treasury Department.
2.legal mortgage on blocks of lecture Halls Complex student centre Okota, Isolo Lagos State valued at N383Million.
3.Legal Mortgage on Block of Lecture hall complex at Elim Mordern Student Centre Okota.
4.Stock Hypothecation of one Billion Naira.
5.Persobal guarantee of the Managing Director with a notarised statement of net worth
6.Promisory note of Elim Motors Limited for the payment of all present and future principal and outstanding balances in the account.

Upon the expiration of the tenor of the bank guarantee ,and in honouring the bank guarantee, Ecobank Nigeria limited unilaterally and wrongly sourced the sum of $8,750,000 it paid to Cedric Trading Company LLC from parallel market rather than from Central Bank of Nigeria by purchasing the foreign exchange at the rate of N475 to one US Dollar, whilst the Central Bank of Nigeria’s approved rate was at N300 to one US Dollar as at that time.

By wrongly sourcing foreign exchange from the parallel market, the bank exposed the Plaintiff Company to the sum over N2billion as loss.
By the provision of the foreign Exchange (motoring and Miscellaneous provision) Act, Cap F34,Laws of the Federation of Nigeria 2004,Ecobank ought not to have sourced foreign exchange from the parallel market.


READ MORE HERE: https://www.witnessngr.com/customer-battles-ecobank-over-n2-billion-loss/