CBN Blacklist Otedola, Dantata, Former Power Minister Nnaji, Others
Renowned businessmen, Mr. Femi Otedola, Alhaji Sayyu Dantata, Dr. Wale Babalakin, Sir Johnson Arumemi-Ikhide, Mrs Elizabeth Ebi, and former Minister of Power, Prof. Bart Nnaji. Have all been blacklisted by the CBN
In a new circular titled Prohibition of New Credit Facilities To Debtors of the Asset Management Corporation of Nigeria (AMCON), CBN explained that the step had to be taken, as the debtors “failed to repay their loans to banks and had those loans subsequently transferred to AMCON.”
Their prohibition from enjoying further credit services will continue until such a time when they full repay all agreed outstandings to AMCON.
“In the initial instance, this restrictions shall apply to individuals, organisations, companies as well as principal shareholders and directors of companies where the outstanding value of loans purchased by AMCON amounted to N5 billion or above as at the day of purchase, without regard to the actual amount paid by AMCON,” the circular, signed by CBN’s Director, Banking Supervision, Mrs. A. O. Martins, stated.
It was accompanied by a detailed list of the blacklisted debtors, showing the worst-hit by the directive as Zenon Petroleum, owned by Otedola, indebted to banks to the tune of N192.4bn; MRS Holdings Limited, belonging to Dantata (N119.98bn); Seawolf Limited (N98.32bn); Arik Air Limited, belonging to Arumemi-Ikhide (N85.481bn); NITEL Plc/M-Tel (N71.547bn); and Capital Oil and Gas Limited, belonging to Ifeanyi Ubah (N48.014 billion).
Also affected are Falcon Securities (N162.9bn); Rockson Engineering Limited, also owned by Arumemi-Ikhide (N60.475bn); BGL Securities (N6.44bn); Rahamaniyya Oil & Gas Limited (N46.38bn); Bi-Courtney Limited (N20.214bn); Geometrics Engineering, owned by Bart Nnaji (N19.76bn); Aero Contractors Company, belonging to the family of Olorogun Michael Ibru (N32.579bn); and Tinapa Business Resort (N18.509bn).
In addition, Nestoil Limited, owned by Ernest Azudialu (N13.506bn); Dorman Long Engineering (N9.667bn); Ascott Offshore Nig. Ltd, belonging to ex-banker, Henry Imasekha and the Berkley Group (N64.728bn); Gitto Constuzioni (N11.838bn); and Dansa Foods (N14.880bn) whose directors, Sani and Abdul Dangote, are brothers of billionaire business magnate, Alhaji Aliko Dangote, were outlawed.
“Deposit Money Banks are prohibited from approving or disbursing any new credit facilities to all persons and organisations on this list with effect of the date of this circular, until full liquidation of agreed indebtedness to AMCON,” the circular added.
Commercial banks were also prohibited from granting further credit to Cross River State and Zamfara State owing to the refusal of the Tinapa Business Resort and the accountant general of the Zanfara State Ministry of Finance to pay back their respective loans.
As proof of its determination to ensure compliance, CBN warned that “any DMB that is in breach of these guidelines shall be required to make an immediate provision of 100 per cent of total principal and interest outstanding in the account of the customer and related parties, in addition to whatever regulatory penalties the Central Bank of Nigeria may decide to impose.”
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