DMO Sets 2017 Debt Limit For FG

Debt Management Office - DMO Sets 2017 Debt Limit For FGThe Debt Management Office has fixed the maximum limit for the federal government’s domestic and external borrowing at 22.08 billion dollars for the 2017 fiscal year.

This is part of policy recommendations of the Debt Management Office contained in its 2016 report of the annual national debt sustainability analysis.

According to the management office, new domestic borrowing has been pegged at 5.52 billion dollars, while new external borrowing is put at 16.56 billion for 2017.

The report explains that, the present value of ‘total public debt to GDP’ ratio for 2016 for the federal government is projected at 13.5 percent with an available borrowing space of 5.89 percent of the estimated GDP of 374.95 billion dollars for 2017.

The management office also recommends that government should explore other alternative and viable sources of financing for the country’s huge infrastructure requirements.

Court Orders Bank To Appoint Accountant In Case Of AMCON Vs. Jimoh Ibrahim

AMCON, Asset Management, Jimoh Ibrahim, Union BankA Federal High Court sitting in Lagos has ordered Union Bank of Nigeria to nominate a chartered accountant within seven days for the purpose of carrying out a forensic audit of statement of accounts on the alleged 50 billion Naira loan allegedly granted to businessman, Mr Jimoh Ibrahim by the bank.

The accountant will work with two other accounting firms nominated by the Asset Management Corporation of Nigeria (AMCON) and Mr Jimoh Ibrahim.

At the resumed hearing of the suit on Monday, lawyer to AMCON, Yusuf Ali (SAN), informed the court that AMCON has already nominated KPMG.

Counsel to the defendants, Chief Niyi Akintola (SAN) also stated that in compliance with the directive of the court, the defendants appointed the accounting firm of Adewale Folowosele & Associates.

The court has also ordered that the joint forensic audit is to be conducted by the three chartered accountant firms within a month at the Union Bank headquarters.

The matter has been adjourned till September 28 for a report of progress or settlement.

Justice Abdulazeez Anka had on July 11 discharged an interim order granted to AMCON to take over some assets belonging to Mr Jimoh Ibrahim.

This was after the business man had submitted that the exparte order was obtained via suppression and misrepresentation of material facts by the plaintiff (AMCON) and the order was obtained in bad faith against persons who are not parties to the suit.

The applicants had in a 24-paragraph affidavit in support of their application, deposed to by one Gbenga Onilude, a litigation officer, stated that none of the properties attached in the exparte order belong to any of the defendants; NICON Investment Limited, Global Fleet Oil and Gas Limited and Barrister Jimoh Ibrahim.

Alleged Debt: Court Discharges Order Freezing NICON, Global Fleet Accounts

NICON, Jimoh Ibrahim, Global fleet
Mr Jimoh Ibrahim

A Federal High Court sitting in Lagos has discharged an interim order granted to the Asset Management Corporation of Nigeria, AMCON to take over some assets belonging to businessman, Jimoh Ibrahim, over an alleged indebtedness.

Justice Abdulazeez Anka set aside the exparte order following an application by the lawyer to AMCON, Yusuf Ali, that parties have decided to explore amicable settlement of the dispute.

A sister court, presided over by Justice Saliu Saidu, had on June 14, 2016, granted to AMCON an interim injunction against NICON Investment Limited, Global Fleet Oil & Gas Limited and Mr. Jimoh Ibrahim.

But, NICON Insurance Limited, Nigeria Re-Insurance Hotels Limited, Abuja International Hotels Limited and NICON Hotels Limited had in a Motion on Notice, filed by their lawyers led by Chief Niyi Akintola (SAN) and Chief Bolaji Ayorinde (SAN) asked the court to set aside and discharge the exparte order on the grounds that AMCON deliberately failed to make full disclosure of all material facts before the court.

At the resumed hearing of the applications to discharge the exparte order today, AMCON’s lawyer told the court that since the provision of the Federal High Court rules encourages amicable settlement of dispute, parties have decided to meet and report back to court within two weeks.

“In the spirit of good faith to show that we are doing this to promote equity and justice we agree that the exparte order should be suspended so that parties can explore the issue of settlement.

“We have an agreement that each of the parties will nominate one chartered accountant each that will carry out forensic audit of the account.

“Since, Union bank is the principal bank that gave out the loan, the accountants will meet at Union Banks headquarters and they are to report back within two weeks,” Yusuf Ali said.

Confirming the agreement, Mr Jimoh Ibrahim’s lawyers also urged the court to set aside the exparte order so as to give parties unfettered access to meet and report back to the court.

“We have appointed Adewale Folowosele & Associates and await that of AMCON and Union bank respectively. Consequently, I apply that the exparte order of June 14, 2016 should be discharged and parties will return back to court within two weeks,” Niyi Akintola (SAN) told the court.

In a short ruling, Justice Anka discharged the order and adjourned the matter till August 1, 2016.

Before this ruling, lawyers to Jimoh Ibrahim in their applications had told the court that the properties attached by the interim order belongs to certain persons who were not parties to the suit filed by AMCON thereby making it illegal, unlawful and contrary to the provisions of Section 28 of the NICON Insurance Corporation of Nigeria Act, Cap N54 Laws of the Federation of Nigeria, 2004.

‘’We also submit that the only condition under which the hounourable court can entertain the application of a person who is not a party to the suit is when the party has first sought for and obtained the leave of the court before bringing the action,” Ayorinde (SAN) argued.

The applicants had in a 24-pragraph affidavit in support of the Motion on Notice deposed to by one Gbenga Onilude, stated that none of the properties attached in the exparte order belong to any of the defendants; NICON Investment Limited, Global Fleet Oil and Gas Limited and Barrister Jimoh Ibrahim.

According to the deponent, the exparte order was obtained via suppression and misrepresentation of material facts by the plaintiff (AMCON) and it was obtained in bad faith against persons who are not parties to the suit.