Connect with us

Business News

Supreme Court Affirms IST’s Jurisdiction on Capital Market Disputes

Published

on

Share

By Tony Obiechina  Abuja 

The Supreme Court has affirmed the Investments and Securities Tribunal’s (ISTs) jurisdiction over capital market disputes in the country.

Director General of the SEC Mr. Lamido Yuguda, who disclosed this during an interview while reacting to the judgement, said the landmark decision confers exclusive jurisdiction on the IST to determine all issues listed in Section 284 of the Investment and Securities Act (ISA) 2007.

He said, “On January 13, 2023, the Supreme Court of Nigeria delivered a landmark decision with enormous implication for capital market dispute resolution. This was in the case of Mufutau Ajayi vs SEC with Supreme Court number SC/314/2007.

Many capital market practitioners have eagerly awaited the outcome of this case which remained pending at the Apex Court for 15 years before it was finally decided”.

The SEC DG stated that the Supreme Court while delivering its judgment in the appeal on January 13, 2023 after going through the facts and history of the matter and reviewing the submissions of the learned counsel representing both parties, found as a fact that the SEC took adequate and sufficient steps to notify the Appellant of the sittings and proceedings of the APC.

He said, “More so, SEC did not act as a judge in its own cause since it acted on a complaint by Sadiq Petroleum Limited (SPNC), a core investor that subscribed 30% of the shares of African Petroleum Plc. Accordingly, the Appellant cannot continue to seek for the grant of the order of certiorari when it was clear that the conditions for the grant were unavailable to him.

“More important however, was the decision of the apex court on the issue of jurisdiction over capital market matters. The Supreme Court held that the main issue in the appeal was that the Federal High Court declined jurisdiction in the matter, which decision was affirmed by the Court of Appeal. 

After reviewing the applicable laws on the actions of the SEC and its Administrative Proceedings Committee APC, the apex court stated, “Based on the foregoing, it implies that any grievance, whether on denial of fair hearing by the APC as in the present case, rule of law, equity, facts or law, etc., should be instituted in the Investment and Securities Tribunal (1ST). It is unequivocal that the proper forum with jurisdiction to hear and determine the case of the Appellant is the Tribunal and not the Federal High Court.” 

“The above decision of the Supreme Court has finally settled this issue. The jurisdiction conferred on the Investments and Securities Tribunal to determine all the issues listed in Section 284 of the Investments and Securities Act, 2007 remains exclusive and cannot be shared with any other court of law. One of such issues relates to any decision or determination made by the Securities and Exchange Commission in the operation of the Act”, he added.

In 2000, the National Council on Privatization offered for sale on behalf of the Federal Government 86,400,000 ordinary shares of AP Plc. A year later, (i.e. in April 2001), a core investor of AP Plc alleged in a press conference that the past management of the company had failed to disclose debts of N22.5 billion owed by the company to various creditors. It also alleged that the auditors of AP Plc were negligent in the auditing of the company.

The Securities and Exchange Commission (SEC) set up a Committee to investigate the allegation. The findings of the Committee affirmed that the sum of N10, 181,606 billion disclosed in the prospectus of AP Plc was less than what the company actually owed as at June 30 1999. 

Mufutau Ajayi was not a director in African Petroleum Plc but was the company’s Finance and Accounts Manager. The Administrative Proceedings Committee of the SEC found that Mufutau Ajayi, being an officer of AP Plc authorized the issue of the prospectus dated 30th March 2000 which contained an untrue statement to wit: that the total indebtedness of the company as at 30th June 1999 was N10.2 billion whereas subsequent revelations indicated otherwise, thereby contravening the provisions of sections 62 (1), (2) (d) and 63 of the ISA 1999.

Although Mr. Ajayi did not show up at the investigative hearing of the Administrative Proceedings Committee despite being invited, the Committee made the following findings against Mr. M.C. Ajayi namely that: although Mr. Ajayi was not a Director of the company, he was a principal officer who played a major role in obtaining the Commercial Papers (CPs) and Bankers’ Acceptances (BAs) that led to the concealed debt; his conduct prior to the offer for sale by denying the auditors access to relevant financial records during the auditing exercise is very reprehensible and highly unprofessional; that his role bordered on economic and financial crime; and that there was enough evidence to refer his matter to the Economic and Financial Crimes Commission (EFCC).

Consequent upon the findings, the Administrative Proceedings Committee directed as follows namely that: Mr. Ajayi be strongly reprimanded for his role in the debt concealment; He is therefore disqualified from being employed or participating, in any capacity, in the securities industry; Mr. M. C. Ajayi be referred to the Economic and Financial Crimes Commission (EFCC) for further criminal investigation and action; and the Institute of Chartered Accountants of Nigeria (ICAN) and all professional bodies to which Mr. Ajayi belongs shall be informed of his actions and this Decision.

Upon being notified of the decision of the SEC via a letter dated April 19, 2004, Mr. Ajayi approached the Federal High Court for judicial review of the decision in Suit No. FHC/ABJ/CS/285/2004 – MUFUTAU AJAYI VS SEC & ANOR. The Securities and Exchange Commission through its counsel raised an objection to the jurisdiction of the Federal High Court to hear and determine the case.

The Court upheld the objection and held that the proper venue for the Plaintiff to take the matter to was the Investments and Securities Tribunal and not the Federal High Court.

The Plaintiff being dissatisfied with the decision of the Federal High Court, appealed to the Court of Appeal in Appeal No. CA/A/200/M/2005 – MUFUTAU AJAYI VS SEC. The Court of Appeal affirmed the ruling of the Federal High Court in its judgment delivered on May 8, 2007.

The Plaintiff (now Appellant) took the matter further to the Supreme Court by a Notice of Appeal he filed on August 2, 2007.

Business News

CBN Shakes Up Banking Sector: A Paradigm Shift Unveiled

Published

on

dailyasset-greetings
Share

By Ademola Oyetunji 

In a surprising turn of events on Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards of three prominent commercial banks – Keystone, Polaris, and Union Bank. This move, although unanticipated, transpired despite the Central Bank’s recent endorsement of these banks’ financial soundness.

Governor Olayemi Cardoso, at his inaugural address during the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner last year, had lauded Nigeria’s financial sector’s resilience in 2023.

Stress tests conducted on the banking industry indicated its strength under various economic scenarios. However, Cardoso highlighted the need for banks to reassess their responsible banking framework, a sentiment echoed by President Tinubu.

President Tinubu’s evident discontent with the Godwin Emefiele-led CBN triggered a comprehensive review of the financial system. A special investigator, Jim Obazee, was appointed to conduct a forensic investigation into Emefiele’s tenure, with damning revelations emerging. Recent developments suggest the initiation of a full-blown financial system reform.

The CBN’s dissolution announcement and the subsequent appointment of new executives for the affected banks, including Yetunde Oni, Mannir U. Ringim, Hassan Imam, Chioma A. Mang, Lawal M. Omokayode, and Chris Onyeka Ofikulu, might mark the beginning of implementing the investigation’s recommendations – a significant cleanup of the financial sector.

Allegations surfaced during the investigation, suggesting non-cooperation from some bank executives and Emefiele’s questionable acquisitions through proxies and cronies. Cardoso may have secured presidential approval for the CBN’s decisive action.

The CBN cited various infractions by the banks, including regulatory non-compliance, corporate governance failures, and activities threatening financial stability. Despite the challenges, the CBN assured the public of depositors’ fund safety and its commitment to upholding a safe, sound, and robust financial system.

The Special Investigator’s report revealed documents pointing to Emefiele’s involvement in Titan Trust Bank and Union Banks’ acquisitions with ill-gotten wealth. The CBN’s swift replacement of the ousted chief executives received widespread commendation, especially from high-net-worth stakeholders aiming to avert a crisis of confidence within the affected banks.

Adewale Aderounmu, an industrialist, applauded the CBN for implementing effective policies under Olayemi Cardoso’s leadership, despite detractors’ actions against the Naira. Ayomide Deepak, an Abuja-based stockbroker, welcomed the action but emphasized the need for caution in handling revelations from the investigation to prevent further economic challenges.

As the CBN wields its regulatory hammer on these banks, the hope is that other bank executives and investors will learn valuable lessons for the sake of the economy. The CBN’s action is perceived as a strategic move aimed at revitalizing the economy and financial system, not a mere vendetta.

*Ademola Oyetunji writes from Ibadan.

Continue Reading

Business News

Firm Blazes The Trail To Revolutionise  Nigeria’s Transport Sector

Published

on

Share

Independent Capital, a visionary project finance firm has blazed the  trail in the country by championing green innovation and facilitating as well as  supporting green innovative projects in Nigeria.

This is coming on the heels of the plan by the Nigerian government to introduce gas-powered vehicles in the country as a fallout of the removal of fuel subsidies.

The Chief Executive Officer (CEO) of the firm, Dr.

George Nwangwu who announced this in a statement in Abuja on Tuesday, said it was aimed at  a transformative leap towards sustainable transportation in the country.

He said with the company’s fusion of financial expertise, a profound understanding of environmental and social impact, a commitment to reducing carbon emissions and  improving transportation quality, “the company aims to reshape the nation’s mobility landscape for a cleaner and more prosperous future”,adding that “it is charting new territories in the realm of sustainable finance by announcing ambitious plans that signify a paradigm shift in Nigeria’s approach to eco-friendly initiatives”.

Similarly, Nwangwu said, its strategic approach combines financial expertise with a profound understanding of environmental and social impact, positioning the firm as a catalyst for positive change in the country’s transportation sector.

He added that the  cornerstone of Independent Capital’s visionary plans involves the unbundling of its three-wheeler Electric Vehicle (e-trike) which signals a significant move towards eco-conscious mobility.

 The CEO further said that the company is committed  to establishing a robust network of solar-powered charging infrastructure to support the operations of its e-trike fleet as the  innovative strategy not only tackles the obstacles associated with adopting electric vehicles but  would also actively contribute to the establishment of a sustainable energy ecosystem.

“We are dedicated to reducing carbon emissions, alleviating congestion and improving the overall quality of transportation for the Nigerian population. Independent Capital aims to create a greener and more efficient transportation ecosystem that enhances the lives of individuals and contributes to a cleaner environment, “he noted.

According to the firm’s CEO, in response to the recent removal of fuel subsidies, the Nigerian market is experiencing a fundamental shift, creating an opportune moment for innovative solutions in the e-mobility sector which “Independent Capital is well-positioned to capitalize on this shift by introducing sustainable transportation alternatives that cater to the evolving needs of the market”.

Also, speaking, the Chief Finance Officer (CFO) of the company, Mr.Moses Saromi said “with the e-mobility sector undergoing significant developments, driven by environmental concerns, technological advancements and shifting government policies our firm is poised to play a pivotal role in shaping the future of transportation in Nigeria,”

He revealed that  the demand for e-mobility solutions in Nigeria is projected to grow exponentially by 15% CAGR and thus, Independent Capital stands at the forefront of providing sustainable alternatives to traditional vehicles and that with  a focus on e-trikes, the company strategically positions itself to capture a significant share of the expanding market to  meet the diverse needs of individual consumers and delivery services to the Nigerian society.

He added that in  the pursuit of a cleaner and more efficient transportation ecosystem, Independent Capital remains a driving force in the nation’s journey towards a greener future.

Continue Reading

Business News

Dangote Refinery Port Facility Receives Maiden Crude Cargo

Published

on

Share

Dangote Petroleum Refinery and Petrochemicals plant has purchased 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.

The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

The maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.

The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

Dangote Petroleum Refinery can meet 100% of the Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have surplus of each of these products for export.

The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck loading gantries.

Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.

The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.

President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”

Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”

Continue Reading

Read Our ePaper

Top Stories

NEWS13 hours ago

FCT HOS: Why President Tinubu Extends Atang’s Tenure By 6 Months

ShareBy Laide Akinboade, AbujaPresident Bola Ahmed Tinubu, has approved the extension of Atang Udo Samuel, as the the Head of...

NEWS13 hours ago

FGGC Benin Emerges Winner of 2023 National Senior Secondary Schools’ Debate

ShareBy Tony Obiechina, AbujaThe Federal Government Girls College, Benin has emerged overall winner of the 2023 National Senior Secondary Schools’...

NEWS13 hours ago

We’re Meeting Our Targets on Airport -Kuje Road Construction – Wike

ShareBy Laide Akinboade, AbujaThe Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, haom Wednesday,  expressed satisfaction with the...

NEWS13 hours ago

Osun to Partner FG on Culture, Tourism Development

ShareFrom Kunle IdowuGovernor Ademola Adeleke has secured a partnership deal with the Ministry of Tourism on the development of tourism...

POLITICS13 hours ago

I Didn’t Call for Ganduje’s Resignation – Alia

ShareFrom Attah Ede, MakurdiGovernor Hyacinth Alia of Benue has denied calling for the resignation of Alhaji Abdullahi Ganduje, the All...

POLITICS13 hours ago

Mutfwang Meets PDP North Central Leadership Calls for Unity among Officials

ShareFrom Jude Dangwam, JosThe Executive Governor of Plateau State, Barrister Caleb Manasseh Mutfwang has called for unity a purpose among...

POLITICS13 hours ago

FG Seeks Swedish Govt Support on Technical Education

ShareBy Tony Obiechina, Abuja The Federal Government is seeking the support of the Swedish Government to help drive its ongoing...

Metro14 hours ago

FG Declares March 29, April 1, Public Holiday to Mark Easter Celebration

ShareThe Federal Government has declared Friday, March 29, and Monday, April 1, as public holidays to mark the Easter celebration.This...

NEWS14 hours ago

Nigeria Prepared to Expedite Sustainable Dev’t in Collaboration with Partners — Tinubu

SharePresident Bola Tinubu yesterday said his administration is committed to deepening democracy by ensuring adherence to the rule of law...

NEWS14 hours ago

Police Engage Bandits in Gun Battle, Kill two, Arrest One in Benue

ShareFrom Attah Ede, Makurdi Men of the Benue State Police Command yesterday engaged bandits in gun duel in Mba-Mtsar village,...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc