Stella Oduah in court over Union Homes’ ₦385m loan

Senator Stella Oduah

Union Homes Savings and Loans Plc has filed a suit against embattled former Aviation Minister and current Senator, Stella Odua, over alleged loan default. She is accused of owing the company about ₦385 million.

According to the suit which was filed before a Federal High Court, the claimant, Union Homes Savings and Loans Plc, is seeking to become an “intervener” in a previous debt recovery suit that was instituted against the Senator by the Asset Management Corporation of Nigeria (AMCON).

Bua group

The company alleged that Senator Oduah, her company (Sea Petroleum Oil and Gas Company), and five Directors of the company is owing them the sum of ₦385,750,000 million.

Others included in the suit are Directors Emmanuel Nnamdi Nwobu, Okoh Davis Ifeanyi, Aaekenwa Theophilous Aguguom, Mrs Nwakaego Ageyingbo, and Enechukwu Humphrey.

The accused entities allegedly took out various amounts of mortgage loans from Union Homes Savings and Loans Plc between 2009 and 2010. They used luxury houses in Oniru and Lekki, Lagos as collateral. AMCON took over the homes following a court order.

As the News Agency of Nigeria reported, the debtors have continued to owe even though Union Home had restructured the loan and waived off interests.

On AMCON’s takeover of  the company’s companies

As we reported, the Asset Management Company of Nigeria (AMCON) obtained an interim forfeiture order from a Federal High Court sitting in Lagos to take over assets belonging to Stella Oduah’s company, Sea Petroleum Oil and Gas Limited.

This was following the company’s inability to settle a separate loan of ₦20 billion which it owes AMCON. AMCON purchased the loan from Union Bank in 2012.

Following the interim forfeiture order in AMCON’s favour, Union Homes claimed that it also deserved “protection of its proprietary interest in the said properties” under contention. This claim is hinged on the probability that the company could loose proprietary interests in the properties.

Union Homes is also at “risk of being compulsorily and unjustly divested of its legitimate investment and proprietary interest by the plaintiffs.”

A likely event of this sort would be unfortunate for Union Homes, which is currently embroiled in its own troubles. An earlier report by the Punch this year, has it that depositors with the company petitioned Nigeria’s lower legislative chamber to mandate mortgage bank to refund their “trapped funds”.

The depositors’ funds became “trapped” following the acquisition of Union Homes by Aso Savings and Loans Plc in 2015. Prior to the acquisition, the company was a subsidiary of Union Bank of Nigeria Plc.

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