₦airaland Forum

OkayDaddy:
Innoson didn't get a penny from GTB. Go to Nnewi and ask him.

Yestogood:
Many of these influential Nigerians do the same thing.
They never service their loans. They divert the proceeds of the businesses, live large and basically ignore the banks.
In the north, this is far more widespread.
Present day Unity Bank is a victim of the propensity of the northern millionaires to refuse paying their loans.

OkayDaddy:
Innoson didn't get a penny from GTB. Go to Nnewi and ask him.

OkayDaddy:
What did Nduka use that money to do?

professorPABX:
The case you referred to was initiated initially and indirectly by EFCC against Innoson in 2017 and 2018. EFCC officials were mishandled and brutalized by INNOSON staff at their factory. The FG did nothing. Till date, in the history of EFCC, no organization in Nigeria has ever mishandled EFCC or any Law Enforcement Agency that way.

The contribution of INNOSON to the economy and the courage and individual efforts of Mr Chukwuma must also be appreciated.

I think Buhari government considered so many things which includes gaining new friend at the expense justice. We are just waiting and watching. I have many things to say I will stop here.

emkz:
Someone that may not be cocooned into your understanding even if I explain.

ppogba:
I do have so. much respect for your views on topics here on Nairaland but on this particular one, there are questions you asked here that are disappointing.

1. On your second question about the experience of the principal person in Oil and gas or hydrocarbon, why not ask about the experience Damgote had in the oil refining business before delving into it or even before banks advanced him money. Or perhaps, the refinery is free of bank loans. Better still, why not ask about Tinubu ' s experience before setting up TVC? What experience did Otedola have in banking before mopping up shares with rhe aim of becoming FBN chairman?

2. What due dilligence did the bank do? Wonderful.! So, you expect FBN to occupy newspaper pages with what they did as per the dilligence before you can be convinced that they did due dilligence?

Wirh all due respect, you will do. well to avail yourself and educate yourself about the proceess and procedures. that loan requests through before be granted. We are talking about millions of dollars in loans here for heavens sake.

Make yoi dey relax atimes, Oga.

LtChisom:
You never chop since yesterday afternoon, but see how you carry the hunger to carry big men issues.
Who cursed you, the person no try at all.

Melagros:
COMRADES, honestly, I will reserve my comment since the matter is before the court, I will neither fault FBN nor will I fault GHL in this case. If GHL truly defaulted the loan facility, the company wouldn't have approached the court for a redress
I remember what had happened between GTB and Innoson Motors, when GTB released her own side of the story, we all blamed Innoson, but funnily, we got disappointed when the court finally delivered her judgement on the matter . Innoson Motors won the case, and I think, the court fined GTB and also compensated Innoson
It's too early to jump into conclusions

ppogba:
So, GTB just picked on them out of the whole registered companies in Nigeria.?

Why not add that they do not even have an account with the bank?

DeLaRue:
Those who approved a $200 million loan to a journalist who is reported to have a chequered credit history to run an oil well did a horrible job.

There is a valid question to be asked about how much a journalist, however senior, knows about oil exploration and production.

And why did the Agreement under which the crude oil production proceeds were to be shared 50/50 between first bank and Mr Obaigbena's company not put the most stringent conditions and measures in place to ensure the company could not divert proceeds or the crude oil.

So, you people sat in your air conditioned offices in Lagos trusting that Mr Obaigbena will be honest in sending the proceeds to you guys without proper onsite oversight. While I am not in a position to attest to Mr Obaigbena's honesty or otherwise, you simply don't do business like this on Nigeria.

The first bank people who approved the loan, and managed the relationship thereafter were either incompetent, negligent, or both.

LtChisom:

Cho cho cho with liquid leaking brain, answer the simple clear questions ppogba threw to you.
You don't use rancid emotions to judge issues like these.
Answer, or forever remain a fool in silence and forge some common sense for your and your family because I know your offspring will be your replica is imbecility and your progenitor may have dilapidated sense of reasoning.

DeLaRue:
Those who approved a $200 million loan to a journalist who is reported to have a chequered credit history to run an oil well did a horrible job.

There is a valid question to be asked about how much a journalist, however senior, knows about oil exploration and production.

And why did the Agreement under which the crude oil production proceeds were to be shared 50/50 between first bank and Mr Obaigbena's company not put the most stringent conditions and measures in place to ensure the company could not divert proceeds or the crude oil.

So, you people sat in your air conditioned offices in Lagos trusting that Mr Obaigbena will be honest in sending the proceeds to you guys without proper onsite oversight. While I am not in a position to attest to Mr Obaigbena's honesty or otherwise, you simply don't do business like this on Nigeria.

The first bank people who approved the loan, and managed the relationship thereafter were either incompetent, negligent, or both.

emkz:
I do not respond to ill-brought up and brainless children like you who lack the stability and decorum for discussing in a public forum. It would be an honour of your life for me to invest attention or anger on you. Unfortunately, that would be a waste of my time.

To sensible readers here, not the person I am responding to. I can respond to the person mentioned by this infant, but I didn't think it was necessary because I am more of an insider to be aware of the lapses in our lending system. It is not everything one knows one must say.

The juvenile wouldn't know this though, because he is not really that sensible or wise.

Fibonacci88:
If not that first bank is too big to fail according to CBN, this bank should have gone under. They have the worst corporate governance and internal control is non existent. It seems they give out huge amounts of these loans with it passing through credit committee CRECO. From one issue to another. They almost went down with heritage bank if not for Emiefele. The other day one staff siphon over 40bn to private accounts as if that was not enough they held lavish party for an ex ED without following proper approval lines now they are enmeshed with this issue with this company. Otedola should just sell off his shares in that bank and go invest in a proper business.

emkz:
What has been established?

1. That General Hydrocarbons Limited (GHL) took out a loan facility that it refused to service and instead requested for more loans.

2. That the loan was diverted by the beneficiary.

3. First Bank proposed an independent operator agreed by both parties manages the financed asset when the bank realized breaches on the part of GHL. GHL rejected the idea.

We have the following questions for First Bank:

(1) On what basis was such a huge credit facility granted to GHL? This is considering that the said person with principal interest in GHL in the dispute does not have expertise in hydrocarbon exploration? Does he have any history in such projects?

(2) What due diligence was carried out before the loan was approved? In this sense, we'd like to know those running the company. Could the bank publish this information?

(3) Oil exploration is extremely expensive and a risky venture. Considering the exposure of banks to bad loans in the past due to cases of unserviced loans by some indigenous oil companies, what wisdom informed the bank to expose itself to such toxic credit asset?

(4) The debtor in question has been said to have a questionable credit history, the bank needs to explain to us the process of the loan approval and whether the loan was properly collaterized.

(5) Where exactly were the funds diverted to? The public would like to know.

(6) These are depositors' funds. What guarantee does the bank have for customers that their funds are not mismanaged?

(7) We saw a statement from the chairman of the holding company who said the asset the bank financed was secured by the debtor in questionable circumstances, i.e., without competitive bidding. At what point did this information come to light? If it was before the facility was granted, it then means the bank committed depositors' funds towards a shady asset. Was there proper corporate governance and due diligence?

For the debtor, we also have questions:

(1) What led to your inability to service the loan? They said you diverted the loan. What did you divert it to?

(2) If you could not honour previous obligations, why did you request for more?

(3) On the 1st of January 2025, President Tinubu, who was consistently opposed and mocked by your related businesses received "Man of the Year" award. Only yesterday, reports emerged that Wike was named "Minister of the Year" by your outfits. In order not to take Nigerians for granted, we are curious as to the sudden volte-face regarding these two individuals by your media businesses. Could you explain the motivation for these awards? Are the awardees expected to twist the law? How?

(4) There has been a lot of stories in the media targeted at some individuals who seem to want to recover the loan. There are stories discrediting the Chairman of First Holdco and seemingly planted stories calling for his head by unknown shareholders. Why can't the debtor explain to us properly why he couldn't service the loan?

(5) Can the debtor confirm if he owns shares in any First Bank subsidiary? If yes, does it mean that shareholders abuse their positions to secure uncollaterized loans?

(6) Why always you?

To CBN, why are you quiet?

emkz:
Hatchet job for whom? For the owner of Arise News who I have opposed their modus operandi here? Perhaps you mistake me for someone else.

I am not hungry to do a hatchet job for anyone. Try and find another argument.

Where were you in 2009 when 4 bank MDs were fired? Are you aware that some of them were doing kalo-kalo with depositors' funds?

Almost 16 years on, what has changed?

Are you aware that there were reports last year that a bank employee diverted over sixty billion naira to various accounts from First Bank which led to the dismissal of over 100 employees? That was over 7% of the bank's asset equivalent stolen! Are you also aware that only yesterday, two of the bank's former executives were said to have a case of 12.4 billion naira with EFCC? Are you aware that there were denied reports of other fraudulent activities?

Are you also aware that the board of the bank has changed hands several times in the last four years, a pointer that various interests are after the bank?

Then they granted a loan to finance an asset whose acquisition was said to be questionable.

In all I surmised above, there are indications of severe corporate and compliance lapses and the regulator needs to be questioned.

Because of bad loans like this, AMCON was set up. Our hope was that our banks would learn and take measures to protect our funds.

There was a rumour that IBB said that he didn't understand why the Nigerian economy had not collapsed. I don't wish it to collapse, but it is hard to understand why it hasn't with the way the financial system is mismanaged.

emkz:
Someone that may not be cocooned into your understanding even if I explain.

ppogba:
I do have so. much respect for your views on topics here on Nairaland but on this particular one, there are questions you asked here that are disappointing.

1. On your second question about the experience of the principal person in Oil and gas or hydrocarbon, why not ask about the experience Damgote had in the oil refining business before delving into it or even before banks advanced him money. Or perhaps, the refinery is free of bank loans. Better still, why not ask about Tinubu ' s experience before setting up TVC? What experience did Otedola have in banking before mopping up shares with rhe aim of becoming FBN chairman?

2. What due dilligence did the bank do? Wonderful.! So, you expect FBN to occupy newspaper pages with what they did as per the dilligence before you can be convinced that they did due dilligence?

Wirh all due respect, you will do. well to avail yourself and educate yourself about the proceess and procedures. that loan requests through before be granted. We are talking about millions of dollars in loans here for heavens sake.

Make yoi dey relax atimes, Oga.

Tjra:
Otedola go drag Nduka like Tiger generator and make him refund every single kobo.

Ote na Yoruba man but he doesn't joke with money just like an Igbo man 🤣

Banks supposed dey run away from so-called billionaires like Nduka and Jimoh Ebrahim.

A TV journalist started an oil company and you didn't do due diligence just because he is well known? That's crazy.

Na well known personalities dey owe money pass.

AndroBlaze:
Your reply above (especially point 2 that I put in bold) shows you have never worked in a Nigerian Financial institution and thus it would be better you take your time to learn from this case or go and ask professionals who have worked there to educate you on how things actually work especially when dealing with well known public personalities who are able to subvert so many things and confuse greedy unprofessional target driven bank executives.

ppogba:
The way people jump to conclusion on social media is amazing. So, by asking whether the bank should have made the due dilligence it did open to all Nigerians on the pages of newspapers made you to conclude that I never worked in a financial institution. Wonderful! Is that how it is done where you work?

Just for your information, the all round experience I had in banking from Internal Control to Banking Operations and Marketing all above BO level to a humble extent qualifies me to speak on a topic like this.

If you are a Messi somewhere, congratulations to you.

I rest my case with you.

AndroBlaze:
So you claim to have worked in Internal Control in this country and then express surprise that a sizable loan was given to a PEP (Politically Exposed Person ) without proper due diligence being followed? Really?

May I ask, did your oversight only include branch operations in remote locations as that can be the only excuse for pleading ignorance to something even basic staff are aware of.

Either that or you are purposely trying to mislead people here that our FIs are bastions of integrity and immune to the Nigerian reality of seeing something like due diligence, not as a guide/shield, but nothing more than a hurdle that is meant to be surmounted by ambitious goal-getting staff.