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60 Bank Chiefs Risk Jail Over N17bn Anchor Borrowers Debt

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Failure to comply with court order to honour obligations in excess of N17 billion has seen the Guaranty Trust Bank (GTBank) and the Afex Commodity Exchange (Afex) insist that over 60 top executives of 13 commercial banks must be committed to jail.

The debt, it was gathered was from the Anchor Borrowers Programme loan, while the executives range from chairmen, chief executive officers, directors, and company secretaries, spanning through 13 banks.

They are facing contempt proceedings for allegedly failing to implement a No-Debit-Order reportedly placed on the accounts of Afex Commodity Exchange with the banks.

In suit no FHC/L/CS/911/2024 involving Guaranty Trust Bank Limited and AFEX Commodities Exchange Limited, the Federal High Court, Lagos division presided by Justice CJ Aneke signed an order for the bank chairmen, MDs, directors, company secretaries and the liquidator of Heritage Bank (Nigeria Deposit Insurance Corporation) to be committed to jail for failing to obey its May 27, 2024 ruling.

This detailed in a legal notice titled ‘Order to serve notice of disobedience to order of court vide newspaper publication’ published in some national dailies on Thursday, partly read, “An order granting leave to the Plaintiff Applicant to serve Form 48 (Notice of Consequences of Disobedience to Order of Court) dated 11th June, 2024 and all other forms and processes that may be issued in this contempt proceedings inclusive of Form 49 on the 1st-60st parties cited for contempt.

The matter was adjourned to next Thursday.

The parties cited for contempt include Access Bank, Citibank, Jaiz Bank, Union Bank, Fidelity Bank, First Bank of Nigeria Plc, First City Monument Bank, NDIC (liquidator for Heritage Bank), Polaris Bank, Stanbic IBTC Bank, Standard Chartered Bank, Taj Bank, United Bank for Africa and Zenith Bank alongside its principal officers.

According to the ruling of the court, 20 banks were directed to transfer monies standing to the credit of the respondent into the AFEX’s account with GTB until the N17.81bn is repaid.

The court ruling dated May 27, 2024, shows that the N17.81bn loans comprise N15.77bn; the amount outstanding and unpaid, as of April 17, 2024, while the cost of recovery and incidental expenses in the sum of N2.04bn.

The court also granted an injunction allowing the GTBank to takeover AFEX 16 warehouses located across seven states and sell the commodities stored in them, on the premised that they were procured with the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ loan facility.

Earlier in the month, the court had served contempt proceedings against AFEX and some of its principal officers including Ayodele Balogun, Jendayi Fraaser, Justin Topilow, Mobolaji Adeoye and Koonal Ghandi.

It was gathered from the court papers, that AFEX had sourced the Anchor Borrowers Programme Loan facility from GTB to provide finance for smallholder farmers registered under the CBN Anchor Borrower’s programme.

The loan was expected to be repaid from the sale of commodities. However, AFEX failed to uphold its end of the deal even after an extension.

In a statement following the interim court order, AFEX claimed that it had repaid about 90 percent of the loan facility.

“However, a portion of the loan remains outstanding with the farmers and while we have paid out a portion out of our own purse, we remain in discussions with CBN over the outstanding amounts of the said facility,” the exchange said.

It also averred that the full value of the loan was utilised to provide input to farmers in three consecutive seasons, starting in 2020.

The exchange added that it had remained consistent with repaying the loans until economic headwinds impacted the operations of the farmers that they had disbursed the money to.

“Over 800,000 hectares of farmland were financed through the course of the programme’s operationalisation; however, significant macro and policy headwinds, including the cash crunch on the back of the Naira redesign policy, severely impacted the productive capacity and market participation of the smallholder farmers in the 2022/2023 season.

“This resulted in less than 40 cent repayment from farmers on their input loan bundles, down from our 90per cent repayment rates in the previous eight years of providing input financing for farmers. The low repayment rate ultimately impacted on our ability to refund the full value of the loan at the end of Q1 2023 and following a 6-month extension period,” AFEX added.

The commodities exchange also stated that the lingering effects of the cash crunch have continued to impact farmers, who sold at below market value to get immediate cash inflows to sustain their families in the period and remain unable to pay back.

To save the situation, AFEX has called on the CBN to activate the collateral guarantee of up to 70 percent clause included in the Anchor Borrowers programme.

“Evidenced in the attached letters, our engagements with Guaranty Trust Bank Limited, a Participating Financial Institution in the program, as well as the apex bank have seen us highlight these limitations on the part of the defaulting farmers with suggestions being made to the CBN to activate the risk-sharing structure put in place for the program and release funds accordingly to sustain activities and allow for needed recovery efforts in our agriculture sector.

“In light of these engagements, we consider the recent steps by Guaranty Trust Bank Limited to be premature, coming in the midst of open conversations that are being had with all parties to find a path to resolution that does not unduly punish farmers, who have been the biggest hit by macroeconomic conditions that they had no control over,” AFEX concluded.

The CBN at the inception of the programme in 2015 said the broad objective was to create economic linkages between smallholder farmers and processors to increase agricultural output and ensure food price stability.

The Anchor Borrowers’ Programme guidelines stipulate that upon harvest, benefiting farmers are to repay their loans with produce (which must cover the loan principal and interest) to an anchor, who pays the cash equivalent to the farmer’s account.

By 2022, at least 4.8 million people had benefitted from the Anchor Borrowers Programme and the CBN in a 2023 statement said it released N1.079tn under the programme, out of which over N500bn is due for repayment.

The programme has since been discontinued by the CBN as it pivots from development financing interventions to its core duty of price and monetary stability.

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SERAP Takes Legal Action Against FG Over 50% Telecom Tariff Hike

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The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Federal Government of Nigeria (FGN) on what it termed “the arbitrary, unconstitutional, unlawful, unfair, and unreasonable 50 percent telecom tariff hike by the Nigerian Communications Commission (NCC).”

Biztellers reports that the NCC was joined in the suit as Defendant.

Recall that the NCC recently approved a 50 percent hike in telecom tariffs, which by implication would see the average price of calls will rise to N16.5 per minute from N11; the cost of 1GB of data to N431.25 from N287.5/GB; and SMS rates to N6 from N4.

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In the suit number FHC/ABJ/CS/111/2025 filed last Friday at the Federal High Court, Abuja, the SERAP is asking the court to determine “whether the unilateral decision by the NCC to authorise telcos to hike telecom tariffs by 50 percent is not arbitrary, unconstitutional, unlawful, unfair, unreasonable and inconsistent with citizens’ freedom of expression and access to information.”

In addition, the SERAP is asking the court for “a declaration that the unilateral decision by the NCC to authorise telcos to hike telecom tariff by 50 percent is arbitrary, unfair, unreasonable and inconsistent and incompatible with citizens’ freedom of expression and access to information, and therefore unconstitutional and unlawful.”

The SERAP is also seeking “an order of interim injunction restraining the NCC, its officers, agents, privies, assigns, or any other person or persons acting on its instructions from further implementing, enforcing and doing any act to give effect to the decision of the NCC authorizing telecom tariff hike by 50 percent.”

In the suit, the SERAP is arguing that: “The legal and constitutional provisions as well as international standards on freedom of expression and access to information constitute the repository of legality. The requirements of legality constrain the exercise of statutory powers by the NCC to authorise any increase in telecom tariffs.”

The suit filed on behalf of the SERAP by its lawyer Ebun-Olu Adegboruwa, SAN, read in part: “The demands of legality impose clear duties of fairness and reasonableness on the NCC in the exercise of its powers to authorize the telecom tariff hike by 50 percent, which is the subject-matter of this suit.

“The NCC is required under the legal provisions on consumers’ rights and constitutional and international standards on freedom of expression and access to information to base its decision on reasonable interpretations of its enabling statutes and guidelines and other relevant legal frameworks, and to follow due process.

“The exercise of the statutory powers of the NCC in approving the telecom tariff hike is a grave violation of the provisions of the Federal Competition and Consumer Protection Act 2018, the Nigerian Constitution 1999 [as amended] and the African Charter on Human and Peoples’ Rights to which Nigeria is a state party.

“These legal and constitutional provisions and international human rights standards recognize that every individual has the right to an equal opportunity to receive, seek and impart information through any communication medium without discrimination.

“The constitutional and democratic anomalies complained of by SERAP is more apparent when the said unilateral decision of the NCC approving a 50 percent increase in telecommunication tariffs is juxtaposed with the apparent procedural breaches of the condition-precedent for any approval of increase.

“The NCC is the statutory agency charged with the responsibility of promoting and implementing the national communications or telecommunications policy in Nigeria.

“The latest patently unconstitutional and unlawful increase in telecommunication tariffs is coming on the heels of a recent report by the National Bureau of Statistics (NBS), which shows that some 133 million Nigerians are poor.

“The NBS report also shows that over half of the population of Nigeria are multi-dimensionally poor and cook with dung, wood or charcoal, rather than cleaner energy.

“The increase in telecommunication tariffs is a fundamental breach of due process of law, as the purported approval by the NCC failed to meet the high threshold of consultation with key stakeholders, especially the Federal Competition and Consumer Protection Commission, which is the primary consumer protection agency in Nigeria.

“The increase in telecommunication tariffs is coming at a time when Nigerians are deeply burdened by the cost of living crisis. The cost of living crisis has resulted in low quality of life, unemployment and deaths, as many socially and economically vulnerable people scramble for free food in public and religious gatherings.

“The present-day economic realities in Nigeria include chronic poverty amongst a high percentage of citizens and the growing inability of several state governments to pay salary and pensions of workers, especially as the country still suffers from the removal of fuel subsidy, electricity tariff hike and inflated cost of food in the market.”

The SERAP is therefore asking the court for the following reliefs:

A DECLARATION that the unilateral decision of the NCC approving the increase of telecommunications tariff by 50 percent is arbitrary, unfair, unreasonable,  and a deliberate attempt to stifle the constitutional and international human rights of citizens to freely express themselves and share information, and breach of sections 104 and 127 of the Federal Competition and Consumer Protection Act 2018, section 39 of the Constitution of the Federal Republic of Nigeria 1999 [as amended] and Article 9 of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act and Article 19 of the International Covenant on Civil and Political Rights to which Nigeria is a state party.

AN ORDER setting aside the unilateral decision of the NCC approving the increase of telecommunications tariff by 50 percent contained in a press statement published by the NCC on 20th January 2025 for being arbitrary, unfair, extortive, unreasonable, unconstitutional and a breach of the provisions of Sections 104 and 127 of the Federal Competition and Consumer Protection Act 2018, section 39 of the Constitution of the Federal Republic of Nigeria 1999 [as amended], Article 9 of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act and Article 19 of the International Covenant on Civil and Political Rights to which Nigeria is a state party.

AN ORDER restraining the NCC, its agents, assigns, privies and or representatives or such other persons acting on its behalf, and all telecommunication companies in Nigeria from implementing and/or enforcing the unilateral decision of the NCC approving the increase of telecommunications tariff by 50 percent as contained in a press statement published by the NCC on 20th January 2025.

AND FOR SUCH FURTHER ORDER(S) that the Honorable Court may deem fit to make in the circumstance of this suit.

No date has been fixed for the hearing of the interim application and the substantive suit.

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Savannah Energy Provides Unaudited FY 2024 Trading Updates 

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Savannah Energy Inks New Gas Sales Agreement with Notore

 

Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.

According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).

On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.

“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”

The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.

The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.

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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.

The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.

The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.

The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.

The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.

In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.

On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.

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Nigeria Can Achieve 5.5% GDP Growth – NESG

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The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.

This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.

Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.

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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.

 

 

 

 

 

 

More to follow………. 

 

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