Connect with us
nairametrics
UBA ads

Business News

Innoson boss reacts to arrest warrant, says order is an abuse of process taken so far

@innosonvehicles boss, Innocent Chukwuma is accusing @GTBank of being behind his arrest warrant and this is what he did about it.

Published

on

Innocent Chukwuma, Innoson, GTBank, Guaranty Trust Bank

The founder and chairman of Innoson Nigeria Limited, Innocent Chukwuma has reacted to the arrest warrant issued by the Federal High Court yesterday. The court had granted the request of a Director in the Ministry of Justice to arrest Chukwuma and two others, in order to arraign him in court to face criminal charges.

Chukwuma in a series of tweets on his company’s Twitter account, @innosonvehicles, stated that Guaranty Trust Bank (GTBank) was behind the arrest warrant issued, stating that the issuance of bench warrant against him is an abuse of process taken too far.

UBA ADS

Nairametrics had reported that Justice Ayokunle Faji granted the request made by the prosecutor, Mr Julius Ajakaiye to arrest Chukwuma, Charles Chukwu, and Anajekwu Sunny over their refusal to present themselves in court for a case bordering on conspiracy, forgery, and fraud to the tune of N2.4 billion filed by the IGP through the Federal Ministry of Justice sometime in December 2015.

Innoson arrest warrant, innoson and GTBank, NADDC injects N11bn fund into local vehicle production

Innoson motors

The three, alongside Innoson Nigeria Limited and a shipping company, Mitsui Osk, were charged before the court, but only Mitsui Osk was represented in court. So Ajakaiye informed the court that the warrant of arrest was in pursuant with sections 113, 114 and 395 of Administration of Criminal Justice Act (ACJA) 2015.

GTBank 728 x 90

Chukwuma refuted the charges in a press release sent to Nairametrics. He explained that there is no prima facie case against him. According to Chukwuma, the charge was based on suspected action of Innoson Nigeria Limited, and Innoson Nigeria Limited was a party originally to the charge but was discharged by the Court of Appeal. Recall that Nairametrics reported that the Appeal Court discharged Innoson Motors.

[READ ALSO: Meet Kano Cars, Innoson’s local competitor]

Deal book 300 x 250

No grounds for arrest warrant: The Innoson boss said that there was no notice of trial served on him in pursuant to the Administration of Criminal Justice Act.

He disclosed that a case is pending in the Supreme Court to determine whether he was served with the charge, adding that the charge is also an abuse because of a similar suit in relation to the charge pending at different Federal High Courts.

app

But this is not the first time an arrest warrant will be issued against Chukwuma. Justice Mojisola Dada of the special offences court in Lagos had done same in 2018. He had also been arrested by Nigeria’s anti-graft agency, Economic and Financial Crimes Commission (EFCC) in 2017, an incident many believed was in connection to Innoson Motor’s ongoing case with GTBank. The bank, however, issued a statement denying their involvement in the development.

Patricia

Note that the act provides that before the court should issue a bench warrant, there must be proof of service of the charge and the notice of trial on the person involved.

[READ ALSO: Reactions trail EFCC’s vow to punish Innoson boss]

Police dropped charge against him: Chukwuma further stated that the basis of the arrest warrant was no longer valid as the Police had withdrawn the 2015 charge (CHARGE NO: FHC/L/565/2015) filed against him on February 17, 2016. The withdrawal was filed at the Federal High Court Registry in Lagos.

[READ ALSO: Innoson partners Nigeria Army on military hardware]

app

GT Bank’s alleged involvement:

  • According to Chukwuma, GTB compelled an unnamed Director of Public Prosecution (DPP) of the Federal Republic of Nigeria to claim to have taken over the Charge/case using the name of the Attorney General of the Federation after the Police had withdrawn the case.
  • The DPP was eventually dismissed from his position due to his involvement in this matter and his complicities, Chukwuma alleged in the statement.

  • Why GTBank is pulling the strings according to Chukwuma is to compel the Innoson Motors chairman to negotiate from a ‘weaker position’ in a case involving Innoson Motors and GTBank.

[READ ALSO: Why Court wants company owned by Israeli billionaire liquidated immediately]

  • What transpired between GTB and Innoson: The company claims that GTBank lost a Supreme Court appeal for it to rescind the lower court’s decision for it to pay back Innoson N2.4 billion plus interest at 22% per annum in “illegal charges” against the car maker.
  • According to Innoson, the Judgment debt of N2.4 billion has an accrued interest of about N6,717,909,849.96 as of 2019, which results in about N8.8 Billion, but as of 2014, it was N6 billion.

In the statement, the company urged GTBank to comply with the Supreme Court judgment and pay the over N9 billion judgment debt within the unstated time-frame given to the bank or Innoson will execute the Writ of Fifa against GTBank.

What is a Writ of Fifa: This is a court document used by the successful plaintiff to enforce the judgment of a court by taking a lien on a property of the defendant that it believes is worth more than the amount being owed.

[READ ALSO: $9bn fine: P&ID open to settlement as court order to seize Nigeria’s assets is awaited]

Meanwhile, he disclosed that he has filed a suit to appeal against the Order of Bench Warrant to the Court of Appeal and have as well filled a Motion for Stay of Execution of the Order.

GTBank is yet to respond to the accusation of perpetrating the arrest warrant of Chukwuma.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: fakoyejo.olalekan@nairametrics.com.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business News

Why households that engage in subsistence agriculture are poor – Yemi Kale

“We established the poverty line at N137,430 and any individual or family that spends below this on food in a year will be classified below the poverty line.”

Published

on

Rauf Aregbesola annual colloquium

Subsistence agriculture alone may never be able to sustain any household in Nigeria. This is according to Nigeria’s Statistician-General and CEO of the National Bureau of Statistics (NBS), Dr Yemi Kale, who spoke during the Rauf Aregbesola annual colloquium earlier today. The event had the theme Government Unusual: Innovative Economic Solutions to Unlock Mass Prosperity.

Using insights from the 2019 National Living Standards Survey, Dr Kale explained that households that are solely engaged in subsistence agriculture appear to have the highest levels of poverty. This set of families are followed by households with more than twenty members.

UBA ADS

“This doesn’t mean agriculture is a bad thing. It simply means the way we do agriculture in Nigeria has to be improved so that it does not become synonymous with poverty or we have to find other sources of income for farmers to supplement their standard of living,” he said.

Speaking further, Dr Kale explained that the living standards survey, which was conducted in collaboration with the World Bank, started in late 2018 and ended in 2019. The survey utilized data from all states in Nigeria except Borno whose data was not considered credible enough given the security situation in the state. Kale said:

“We established the poverty line at N137,430 and any individual or family that spends below this on food in a year will be classified below the poverty line.”

GTBank 728 x 90

Given this yardstick, the survey established that at least 22.9 million Nigerians are living in poverty, with the bulk of this number coming from the rural areas and states with low indices on education, social welfare initiatives, employment, and income equality.

Formalising the informal sector

The informal sector comprises people who earn enough to keep above the poverty line on a daily basis, but not enough to sustain them in the event of a lockdown, as was seen recently in some states during the April COVID-19 lockdown. This is a problem that can only be solved if the informal sector becomes formalised, Kale said. In other words, formalizing this sector will help more daily wage earners stay above the poverty line. He made reference to the recent lockdown which incapacitated lots of daily wage earners in states such as Lagos.

Nigeria’s poor versus other African countries

Making a comparison, Yale also noted that Nigeria’s poor are poorer than their counterparts in South Africa despite the fact that the nominal size of Nigeria’s economy is much larger.

He attributed this to findings which showed that Nigerians spend three times more on foods and consumables than all other items put together, as against countries like South Africa and Egypt where less is spent on food items.

“Nigerian remains Africa’s largest economy, but per capita income is rather low for a country of this size, and the level of poverty presents a major development challenge” he noted.

app

Reducing unemployment – the fastest way out

According to Kale, the fastest way out of poverty is to reduce unemployment, as people will naturally have more to spend on their needs when they are employed. To support his point, Kalu cited five Nigerian states with the least poor people in comparison to the other states Lagos, Delta, Ogun, Osun, and Oyo. Each of these states has fewer unemployment levels compared to the states with higher poverty rates such as Sokoto, Taraba, Jigawa, Ebonyi, and Adamawa states.

Patricia

Other indicators which show similar trends across the states are education, and ease of doing business. The poverty rates are almost always higher where education is poor.

Increasing local production

Also making a presentation during the colloquium, Dr Joe Abah called for a review of the 1978 land use act which he said is limiting in its provisions. He also stressed that Nigeria needs to improve access to capital, raw materials, lands, and technological innovations so that production capacity can increase significantly.

“All of the richer countries simply produce more, and they produce more things that people want to buy and want to consume. It could be products or services. the higher your production capacity, the richer you are. if you cannot produce, you cannot develop your education or your health sector.”

According to Abah, the cost of governance cannot be reduced without adopting some of the suggestions of the Oronsaye report, and restructuring the system for productivity. He said that “there is also a need to link budget and funding to productivity so that public sectors begin to understand that the more funding they require, the more they are expected to produce as well.”

He also suggested that states should start focusing on their competitive advantage and use same to improve general productivity in their state.

app

Other panelists at the colloquium include Mallam Nasir El-Rufai, Governor, Kaduna State, Sen. Abubakar Bagudu, Governor, Kebbi State, Mrs. Hajara Adeola, CEO, Lotus Capital Limited, Mr. Bismarck Rewane, CEO, Financial Derivatives Limited, Dr. Joe Abah, Country Director, DAI, Dr. Yemi Cardoso, Chairman, Citibank Nigeria, with Boason Omofaye as the moderator.

You may watch the colloquium by clicking here.

Continue Reading

Economy & Politics

Output cut: Nigeria leads in OPEC non-compliance with 50 unsold cargoes of crude

Nigeria and Iraq were reported not to have kept to their commitment to the huge production cut deal that had promised to reduce output by 9.7 million barrels of crude oil per day.

Published

on

Petroleum Industry Bill to be passed by mid-2020, says Sylva, FG discovers crude oil in north, says there’s more , OPEC, non-OPEC countries to meet as Saudi, Russia price war affects Nigeria’s budget, FG considers fuel price reduction, OPEC deal: Nigeria to generate additional $2.8 billion revenue as FG reacts

As opinions continue to differ on whether OPEC will extend its current oil output cut beyond June, available information has shown that not all members of the oil cartel complied fully with their agreed quotas for the month of May. This is despite the fact that the oil output by OPEC member countries reached its lowest in almost 20 years.

Available data from oilprice.com showed that OPEC members cut their output by 5.91 million barrels per day from the April level, producing 24.77 million barrels per day. This figure also showed a 4.48 million barrel per day of the agreed output cut, thereby representing a 74% compliance level.

UBA ADS

Nigeria and Iraq were reported not to have kept to their commitment to the huge production cut deal that had promised to reduce output by 9.7 million barrels of crude oil per day.

Iraq was able to achieve just 38% compliance of its agreed output cut for the month of May, while Nigeria, which achieved a much lower compliance of the agreed output cut, recorded 19% compliance of what was agreed. Saudi Arabia showed the highest compliance, recording 96% of the agreed output cut.

Some have attributed the noncompliance of some members of OPEC to the agreed output cut, to the contractual obligations and commitment to buyers, given the short timeframe between when the agreement for the output cut was made and its implementation.

GTBank 728 x 90

Meanwhile oil exports from Angola and Congo remained steady at high prices on Friday, while Nigerian oil fared lower amid huge inventory of unsold cargoes.

Nigeria continues to face some difficulty in the oil market, primarily due to sluggish demand from Europe; it has around 50 unsold cargoes of crude oil yet to be sold for the months of June and July.

Meanwhile, India has become one of the few buyers for the Nigerian oil. Indian oil firms bought about 5-6 million barrels of Nigerian crude oil last week and has bought about 2 million barrels as at Thursday this week.

Continue Reading

Business News

President Muhammadu Buhari reshuffles NNPC’s board of directors

Note that the former board included the late Chief of Staff to the President, Abba Kyari as a member. Stakeholders have since expected the President to reconstitute a new board to take over.

Published

on

President Muhammadu Buhari to address Nigerians on Monday, receives update and recommendations from PTF

President Muhammadu Buhari has approved the reconstitution of the board of the Nigerian National Petroleum Corporation (NNPC) after the expiration of the tenure of the current board.

The newly constituted board members are expected to serve for a tenure of three years, effective immediately. They will take over from the last board, whose 3-year tenure officially ended in 2019. Information about this development is contained in a State House press release that was published on the official twitter handle of the Nigerian Presidency on Saturday morning.

UBA ADS

READ MORE: Construction of ICT Parks nudges Nigeria into digital transformation

READ ALSO: CBN and NIPOST open pilot microfinance branches

GTBank 728 x 90

The newly constituted NNPC board is made up of six members from each of the geo-political zones in the country. The members include the following individuals:

  • Mallam Mohammed Lawal, representing the North West
  • Dr Tajudeen Umar from North East
  • Adamu Mahmood  Attah from North Central
  • Senator Magnus Abe from the South-South
  • Dr Stephen Dike from the South East, and
  • Chief Pius Akinyelure from the South West geo-political

READ MORE: Boko Haram: A protracted battle yet to be won?  

Of the six members, three are returning members on the board – Chief Pius Akinyelure, Mallam Mohammed Lawal, and Dr Tajudeen Umar from North East.

Note that the constitution of the new board is considered a welcome development, as it balances the representation of the six geo-political zones on the board. The previous constitution of the board was faulted for not being “balanced”.

READ ALSO: Full text of President Muhammadu Buhari’s 58th Independence day broadcast

app

Note that the former board included the late Chief of Staff to the President, Abba Kyari as a member. Stakeholders have since expected the President to reconstitute a new board to take over.

Patricia

Get the Nairametrics News App

Continue Reading