Opinion
The Debt Albatross and Banking in Nigeria: Ecobank, Vigeo and Victor Osibodu
By Rasheed Bamawo
Vigeo Limited was granted various credit facilities to support its business in 2007 by the former Oceanic Bank (Now Ecobank Nigeria Limited), which it failed to liquidate upon expiration in 2008. The Bank had financed the purchase of the Vessel known as MV- OLUFUNKE on behalf of Vigeo and repayment of the facilities was to be made from cashflow from the Company’s operations, including cashflow from the financed Vessel. The facilities were secured with a Legal Mortgage over the Vessel financed, as well as the Personal Guarantee of the Chairman of Vigeo, Mr. Victor Gbolade Osibodu, amongst others.
Interestingly, Mrs. Olufunke Osibodu, wife of the Chairman of Vigeo Limited was a former Managing Director of Ecobank Nigeria and a former top Group Executive of the Ecobank Group. She is also a major shareholder in Vigeo Limited, a company she owns with her husband. There are concerns in the market that Mrs Osibodu may have used her position as a former top Executive of the Bank to shield the company and her husband from settling the obligations.
In 2017, following Vigeo’s recalcitrant nature, Ecobank commenced a recovery action against the Company and Mr. Victor Gbolade Osibodu in Suit No. FHC/L/CS/1553/2017 – Ecobank Nigeria Limited v Vigeo Limited (Owners of MV Vigeo Olufunke) and Anor, for the recovery of the outstanding exposure, which was in excess of N26,000,000,000.00 (Twenty-Six Billion Naira) as at December 2021. The Court had early in 2017 granted a Mareva Order freezing the Company’s accounts in all Banks in Nigeria, based on an application filed by Ecobank in an attempt to recover the huge exposure, which constitutes its depositors’ and shareholders’ funds.
In the ongoing suit, Ecobank seeks the following reliefs:
An order of Court for payment of the outstanding sum plus interest at the rate agreed by the parties until final liquidation
Post judgment interest on the outstanding debt at the rate of 20% until final liquidation
An order of Court for the forfeiture and sale of Victor Gbolade Osibodu’s beneficial ownership of 80% of Vigeo House at 6, Osborne Road, Ikoyi valued at about N800MM, pursuant to the personal Guarantee he executed in favour of the Bank
An order of forfeiture and sale of Victor Osibodu’s beneficial ownership of the property at 16A, Milverton Road, Ikoyi valued at N700,000,000 as at 2017,
An order granting Ecobank ownership, control, lien and disposition of; all shares held in any companies by the 1stand 2nd defendants with the Federal Republic of Nigeria, cash at hand and held in Bank or any financial institution in Nigeria, all financial investments standing to the Credits of the 1st and 2nddefendants whether held in shares, bonds, treasury bills or other financial instruments, amongst others.
General and exemplary damages in favour of the Bank in the sum of N100,000,0oo.oo for loss of business expectation and lack of good faith by the 1st and 2nddefendants.
Reliable sources from Ecobank have confirmed that the Vigeo loan has been fully provisioned by the Bank, in line with regulatory requirements. However, the Bank will continue to pursue the debtor until full recovery of the debt.
Vigeo and Mr Osibodu in their statement of defence stated that Ecobank Transnational Incorporated did not acquire defunct Oceanic Bank International Plc at all, contesting that any purported acquisition is void, illegal and unenforceable in law. It stated that there was no merger of defunct Oceanic Bank with the plaintiff (Ecobank) and no valid or legal merger, adding that the purported merger is illegal and void in law and did not comply with all requisite statutory requirements and due process of law. The defendants also stated that Ecobank is not the successor-in-title or successor-in-interest of defunct Oceanic Bank, and the rights, assets and liabilities of Oceanic Bank are not vested in Ecobank.
The peculiarity of the Nigerian financial crisis which hit the Banking Industry hard, was largely due to huge loans gone bad that were given to these debtors many of whom simply refused to pay because they consider themselves the untouchable in the society, who should get away with not observing the obligations that come with borrowing money from Banks. The refusal of Vigeo Limited and the Osibodus to settle their outstanding indebtedness to Ecobank seems to be the trend amongst debtors who brandish themselves as the movers and shakers in the society. They obtain huge loans from Banks to support their lifestyles and float other businesses with no intention of repaying the debt. For instance, the promoters of Vigeo are the owners of Citiserve and Benin Disco, amongst others and it is widely believed that the Electricity Company (Benin Disco) was set up using loans obtained from Ecobank. There is something particularly distasteful that this development brings to the Nigerian economy in general and the Banking Industry in particular.
What is even stranger is that the debtors many of whom have been established to be chronic defaulters are unperturbed by the crisis occasioned by their nefarious activities. This attitude has led to several financial crises in Nigeria, culminating in the financial crisis in 2009, which resulted in the setting up of AMCON to take over delinquent loans and keep the Banks afloat. There are several negative implications of debtors’ default in meeting their loan obligations – thousands of jobs were lost in the Banking industry because of the crisis that resulted from the many debt defaults on account of this behaviour. Indeed, some Banks like Oceanic Bank (from whom Vigeo originally obtained the loans) did not survive the crisis, and Ecobank had to step in to acquire the Bank. The financial system and the overall economy are still reeling from its aftermath, as billions of Naira of our Commonwealth were invested to rescue the distressed Banks.
It is therefore being advocated that this is a matter the relevant authorities must look at seriously. Chronic defaulters who go from one Bank to another throwing their political, economic connections and supposed business weights around, to secure loans are well known. There is need for cooperation and partnership to identify and blacklist such well known serial and recalcitrant defaulters who think they can use their political and economic powers to avoid meeting their obligations.
The matter, before Hon. Justice Bolgoro of the Federal High Court, Ikoyi, was adjourned to March 17th and 30th for commencement of trial.
News
Food for Living: The Insatiable Nature of Man
By Henry Ukazu
Dear Destiny Friends,
There’s no doubt that human beings by nature are insatiable. When we get one opportunity, we always look for another. When we attain one height, we always look for another accomplishment. Isn’t it true that the end of one mountain is the beginning of another.
However, I don’t think it’s selfish for anyone to dare to succeed.
Being ambitious doesn’t make one an opportunist or disloyal. It all depends on one’s perception or outlook to life. It’s just natural for one to dream big. It’s only ugly when the process one chooses to achieve his desires becomes dirty and nasty.
According to a former Nigerian presidential candidate and seasoned Economist, Mr. Peter Obi, “if you must be referred to as “Your Excellency”, then the process through which you arrived in office must be excellent”.
If you desire to be reckoned with on the journey of existence, you must be legitimately hungry for success. One’s hunger for success will facilitate the drive to accomplish great tasks despite daunting obstacles posing as challenges.
When one has this mindset, one will not be bothered by the noise which serves as obstacles and challenges along the way. Negative and weak minds are always concerned on why something won’t work. They tend to focus their energy and reasons on the obstacles facing them. But great and productive minds always focus their energy on the reasons why it will work. This is the spirit of an insatiable mind who is a goal- getter.
It’s instructive to note that we can’t please everyone. According to Bill Cosby, a famous actor, “I don’t know the key to success, but the key to failure is trying to please everyone.” Isn’t it true that when you talk, people will still talk about you, when you don’t talk, people will talk about you, so whether you talk or not, people will still judge you, so, do what’s best for you. There’s nothing you can do to please human beings. Your best option is to live your best life.
To understand how the insatiable nature of man works, one must be oneself. You don’t have to “please” anyone. Be yourself, and don’t try to be like anyone just to curry favour. It’s important to note that when you are yourself, the people that matter will come through for you, and the people that don’t matter will gradually find the bearing in another space because those that truly care don’t bother and those that bother don’t really matter in the grand scheme of things.
Life has truly taught me to focus on the important things of life as opposed to the mundane things. It’s truly sad to see people spending more time on the little things of life, and spending little time on the important things of life. That’s just a misplaced priority.
When you are yourself, the best people can do is to copy or imitate your style. They can never imitate your creativity nor can take your originality from you.
We live in a world or society where people don’t generally care or show empathy. Most people tend to live around themselves, their family, and close associates. They generally find it hard to lift a finger to assist others for reasons best known to them. Rev. Fr. Ejike Mbaka once said, “we live in a wicked generation”, re-echoing the voices of a lot of people of the world. Some people in authority just have criminal expertise in amassing wealth of opportunities meant for the citizens without thinking of the citizens they are meant to serve.
It’s worthy of note that not everyone will like you nor support your work, but when you find people who truly care about you; please hold them tight. This is because despite having family members you have shown love and compassion, they might not still appreciate you even if you lay your life for them, they will still find something to say. Again, this is the insatiable nature of man.
It’s okay for everyone not to like you, normalize living your life for God, yourself, family and those that care about you. If everyone likes you, you have a problem.
Did you know that you can get a new family from friends, strangers, and acquaintances? These sets of people might appreciate you more than your own family members. They might not demand or under appreciate you like your family members and close friends or associates. Any little support you give them will be highly appreciated. Their focus is to see you do better.
In conclusion, as you desire to succeed in life, never give in to failure until you have made your last attempt, and never make your last attempt until you succeed. This literally means whatever you desire, dream it, think it, say it, and believe you can achieve it. This principle is generally applicable to relationships, businesses, family, personal and professional development.
Henry Ukazu writes from New York. He works with the New York City Department of Correction as the Legal Coordinator. He’s the founder of Gloemi. He’s a Transformative Human Capacity and Mindset coach. He is also a public speaker, youth advocate, creative writer and author of Design Your Destiny Design Your and Unleash Your Destiny . He can be reached via info@gloemi.com
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Food for Living: What Seeds Are You Sowing Today?
By Henry Ukazu
Greetings Destiny Friends,
We are all familiar with the Law of karma, which implies that every action has consequences, or that whatever a person does comes back to them. It’s also known as the law of cause and effect, which means for any action, there’s usually a corresponding consequence.
This has a close resemblance to a foremost scientist, Isaac Newton’s theory, the Newton’s Law of Universal Gravitation, which states that “whatever goes up must come down”.
The principle and ideology behind these laws and principles are centered on the principle of life that stays, the way you lay your bed that’s the way you will lay on it. The question we need to ask ourselves is what seeds are we sowing? It’s instructive to note that nobody plants an orange seed and reaps a mango fruit, nor can a watermelon seed produce a pineapple fruit.
The principle of sowing and reaping is sacrosanct. It is whatever one sows that they will reap. This principle is universal. When you sow a seed, you might not get the result immediately, but you will get it in due time by and by.
As a man, when you treat your spouse with love and affection, you will surely get a reciprocal from her, and as a woman there’s the tendency to reciprocate a support from a partner, especially when he is down. These are laws that work with conscience and heart of gratitude of the recipient. No doubt, common sense entails one does the needful.
As a business owner, when you invest in your company and staff, you are bound to reap the fruits in due time. As a parent, when you invest in your children’s good home training and quality education, you’ll be glad for the foundation you laid at your old age.
As a progressive mind, when you invest in reading books, building sustainable relationships, networking, learning skills and adding value to your life, updating and upgrading your life via personal development, you are bound to reap the fruits of your labour.
The challenge most people have is that they haven’t taken time to learn, nor have they taken time to sow the seeds that will create opportunity for them. Some people are just comfortable with begging or looking for parasitic opportunities where they haven’t invested time and resources. Some people are even entitled to someone’s work just because they are friends, family or have a form of relationship. This shouldn’t be the case. As human beings, it’s important for one to be intentional and strategic. Nobody likes to be “used”, rather people like to give value to their time and money.
It is important to note that any seed one sows today, will produce the fruit they will either eat or need tomorrow. In my personal development journey, I was a little bit confused on how I wanted to execute my vision. Because I lacked the right mentors to strategically guide and inspire me, I began to live my life based on experience with no set plan.
In some cases I failed, and in some cases I was able to make an impact. However, one thing is certain, I was moving in the direction I needed by being at the right events and meeting the right people. In the course of time, I began to see myself gaining clarity about my interest. Overtime, I had mentors who were instrumental in guiding and strategically positioning me in the right direction.
When I look back in retrospect, I can only give God the glory because the little works and skills I invested in my life have gradually begun to pay back. The moral here is that I sowed the seeds I am reaping today. It took a while, but it finally came through. This experience has shown me one can get to any height in life, in addition to getting recognition when one is consistent, intentional and passionate about a cause.
Whether you are a boxer, teacher, singer, athlete, journalist, lawyer, coach, writer or minister of the gospel, please do it diligently, and if what you are doing is your purpose in life, the universe has a way of conspiring with you to get to the top.
When people say someone is lucky, blessed, privileged, smart, highly connected to a mentor, or resource person, they are just crafting words of art to describe or qualify their point just to convey a message. This is because though all these words might play a role, if one has not taken a time to do the work, the required opportunity will not pop out and even if they pop out, and one is not destined for the opportunity, the corresponding blessings will not come.
The question we need to ask ourselves is what are we doing with our lives? What seeds are we sowing for the blessings and opportunities we are hoping to get. In my native belief in law, there’s a latin maxim that says “Nemo dat quod non habet” which translates to ‘you can’t give what you don’t have’. This is the reality of many people. They want money, but don’t want to work. They want opportunities but don’t want to intern or serve in probono capacity. They want favours just because they are related or have a kind of relationship with someone, and therefore, automatically believe it will rub off on them without them giving substantiated reasons why they need support. These sets of people believe wealth is sexually transmitted.
I can go on and on, but as a sage will say, a word is enough for the wise.
In conclusion, as you journey through life, always remember that whatever you sow has a way of coming back to you, if not today, in your old age, or transmuted to your children. Just like when you assist your boss in saving money, tomorrow when you have a company, your employees will pay you back without you knowing it’s the deed you invested many years ago. As a single man or lady, when you derive joy in sleeping with married women or men, just know that you will get a corresponding visit in due time.
Henry Ukazu writes from New York. He works with the New York City Department of Correction as the Legal Coordinator. He’s the founder of Gloemi. He’s a Transformative Human Capacity and Mindset coach. He is also a public speaker, youth advocate, creative writer and author of Design Your Destiny Design Your and Unleash Your Destiny . He can be reached via info@gloemi.com
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Food for Living: Embrace Excellence, Create Prosperity
By Henry Ukazu
Dear Destiny Friends,
As human beings, our desires and needs can be insatiable. This is because when one task is accomplished, there’s always the tendency to set our minds for another immediate goal. Even when we get our basic needs, we usually have the urge to get another need. There’s nothing wrong with that however, because it’s only unambitious and docile minds, that would like to dwell in their comfort zones.
In the journey of life, everyone desires prosperity, though not knowing that prosperity is actually a human heritage because everyone is born to win. Prosperity however, doesn’t only mean financial breakthrough, but can also refer to health, academia, family, business, and personal improvement. To prosper in any of these areas, one must understand the basics and the necessary appurtenances that come with similar positions.
Let’s take a minute to explain how these factors play a role in creating prosperity. For instance, to have great health, one doesn’t need to spend more; simple personal hygiene like exercise, good rest, good food, good fruits and more, play a great role. When one engages in all these, they will discover their mental and physical well-being will be in good shape. The same principle is applicable to a student who has done the needful in studying the foundational elements of his major; he stands a better chance of getting a good grade.
If the same principle is applied in personal businesses through creation of excellent product or service, one will never lack clients again. In business, customers love good delivery. When your work is good, people will naturally flow towards you.
The family is not an exception. To build a family, the foundation is very important. The same principle is applicable in our personal and professional lives. When one is intentional in building good values and character, it has a way of robbing off the person in their personal and professional lives.
The symbolic nature of this analysis is that for any great establishment, one must be consistent in building it. It takes a process for someone to be successful. So, whether you are building a brand in business, academic, health, or personal development, every single step one takes is very important in the development or success of that project. When you accumulate all the steps, it has a holistic prospect of making one’s brand unique.
Just to share a practical example of how excellence works – Imagine having an opportunity to meet a legend, who can be a president of a country, Chief Executive Officer of a reputable organization, a Governor of a state, a celebrity of high esteem or even a resource person of interest and you begin to request for money instead of asking questions in order to learn more from them, you might lose them. An intentional being can take time to study the person by building a strong relationship via communication, volunteering for the person, reading the work of the person or even by giving them gifts; all these are proactive actionable steps of creating prosperity, which speak volumes about the person.
Most times, when we want money, wealth, opportunities and prosperity, and we think they are far from us, but the simple truth is that they are within us if only we are able to look deep inside ourselves critically. For instance, if you have a business you are engaged in, no matter how little it is, and is diligent in serving your clients with excellent customer service relationships, it has a potential of scaling up, especially when you deliver excellent service.
Did you know one can build excellence by building the relationship in terms of value with the resource persons? It is the positive work one does that will attract global favours and opportunities. The favour and opportunity will not come one day, but I strongly believe it will come, especially when one is working on purpose.
The mistake most people make in life is that they give up too easily either because the desired returns they are expecting are yet to arrive, or they are not passionate, or vision oriented enough about the cause.
Let me share a practical experience. During my formative years in the USA, then I was still working as a security officer, one of my mentors asked me, ‘Henry, what would you want to do with your life in the near future?’ He advised me to take my time to think about the question before answering it. While I was reflecting on the question, he said, what is one thing you know you can do in life, and you know you won’t fail? I said, I want to be a youth advocate.
He said, you have said this quite a few times, but you need to be engaged in meaningful work before your advocacy work will be appreciated. He further asked me, what’s your passion? I said inspiring youths. He looked at me and said, I know you love youth work, but how do you intend to do this? What will you be teaching them? I said, I will be inspiring them. He looked at me and smiled. It was at this moment; I realized I had much work to do. He finally said to me, before you can inspire anyone, you must have inspired yourself by distinguishing yourself in a particular work which will be compelling to the youths because your work will come with commensurate experience and stories.
Looking back in retrospect, I can definitely relate to what my mentor was saying. Why am I sharing this? Excellence does not come in one day. It takes a process. Over a period of about 15 years, I have directly or indirectly been involved in youth advocacy, and this work has really distinguished and announced me in many quarters. My most recent award was from the White House with President Biden’s signature on it.
Now, you see that one’s work, backed by excellence can create prosperity.
According to Dr. Yomi Garnett, prosperity does not create excellence. Rather, the reverse is what holds true. Excellence creates prosperity. Therefore, from today, start the process of discovering your own personal excellence; your own best path to fulfillment. Then, every day, walk that path.”
The moral of this quote above is that money will not make you prosperous. It is your work that will attract money and prosperity for you, when they are good. Isn’t it true that nobody patronizes a bad product? No customer or client gives tips on a bad service. No good teacher rewards a lazy student, and no great company promotes a lackadaisical staff to an enviable height. Again, have you seen that it is one’s work which is backed by excellence that creates prosperity.
In conclusion, if you desire prosperity or want would like to receive awards and recognition, discover what makes you unique, create your own path and serve humanity by solving problems in an excellent way. Trust me, if you diligently do this, you will understand the meaning of the best form of doing business is personal referral.
Henry Ukazu writes from New York. He works with the New York City Department of Correction as the Legal Coordinator. He’s the founder of Gloemi. He’s a Transformative Human Capacity and Mindset coach. He is also a public speaker, youth advocate, creative writer and author of Design Your Destiny Design Your and Unleash Your Destiny . He can be reached via info@gloemi.com