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Industrial Court Urged To Jail Unity Bank CEO Tomi Somefun For Alleged Contempt

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The National Industrial Court of Nigeria (NICN) has been asked to commence committal proceedings against the Managing Director/Chief Executive Officer (CEO) of Unity Bank Plc, Mrs. Oluwatomi Somefun, and commit her to prison for allegedly flouting orders made by the court.

The request formed the relief in a motion filed by 25 ex-staff of the bank in whose favour the Lagos division of the NICN had given a monetary judgment on July 3, 2019.

The ex-staff, led by John Adeola Taiwo, stated, in the motion filed on December 2, 2019, that Unity Bank was in open disobedience to the orders made by the court on November 12, 2019, and therefore deserved to be committed to prison for allegedly being in disobedience of valid and extant court orders.

The ex-staff had individually sued the bank in 2016 alleging non- payment of some of their outstanding entitlements and gratuity.

The court later consolidated the suits with the consent of parties and on the grounds that the issues were related.

In a judgment on July 3, 2019, in the suit marked: NICN/LA/84/2019, Justice R. H. Gwandu held in favour of the ex-staff and ordered the bank to pay them various sums of money.

But rather than comply with the judgment, the bank appealed and applied to the court for a stay of execution pending the determination of its appeal.

In a ruling on November 12, 2019, Justice Gwandu granted a stay as prayed by the bank but upon certain conditions.

The judge, in the ruling, said: “By the powers vested in this Court under Order 64 Rule 8(3) and in the discretion of this court, I hereby grant the stay of execution of this judgment pending the outcome of the appeal.

“This goes with the condition that the judgment debtor pays the judgment sum into the account of the Chief Registrar, National Industrial Court (an interest yielding account), such judgment sum shall be released to the party that is victorious in the outcome of the appeal.

“The payment of the judgment sum is ordered to be made within five working days, failure of which shall be treated as contempt of orders of this court.”

The pronouncements of the judge are what Taiwo and others are now accusing the Unity Bank of flouting and in respect of which they seek the committal of the bank’s CEO in the fresh motion filed on December 2, 2019.

They argued, in court documents, that “the order of the court has been respected by the judgment debtor in the breach rather than observance, in spite of the stern warning by the court that failure to comply shall be treated as contempt.

“It is trite law that the order of a court of competent jurisdiction remains inviolate until set aside and so, anyone who an order is made against must obey it until the order is set aside or discharged. Once an order exists, it must be obeyed.

“It is a clear fact that, in spite of the clear and explicit order of this honourable court, directing the defendant/judgment debtor to pay the judgment sum into the court’s account with the name of the Chief Registrar, the defendant/judgment debtor has continued, with impunity, to do the exact opposite of the order of the court”.

They added that the alleged failure of the bank to pay the judgment sum into an interest yielding account within five days, as directed by the court, “is an outright disregard of the order of this honourable court, making the defendant/judgment debtor liable for contempt of court”.

They added that since the defendant/judgment debtor is not a natural person, the law allows that its principal officer is penalized.

“It is trite law that where the contemnor is not a natural person, it cannot be committed to prison, but the principal officer can.

“In this case, the defendant (a financial institution) is not a natural person, who can be committed for contempt thereby making any of its high ranking officers in the person of Mrs. Oluwatomi Somefun, being the Managing Director, liable to be committed to prison for contempt of court.

“We urge this honourable court to grant them leave to proceed against Mrs. Oluwatomi Somefun, the Managing Director of the defendant and to find her liable accordingly and commit her to prison for contempt of the order made on 12th November 2019”.

The bank is yet to respond to the fresh motion.

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CBN Fines 9 Banks N150m Each Over Scarcity Of Cash In ATMs

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The Central Bank of Nigeria, CBN, has issued fines to at least nine Deposit Money Banks for failing to ensure cash availability via automated teller machines, ATMs, during the festive season.

The fines total N1.35bn, with each of the banks fined N150m.

The banks were found culpable after spot checks revealed non-compliance with the Central Bank’s cash distribution guidelines.

A statement released by CBN acting Director of Corporate Communications, Mrs Hakama Sidi Ali, on Tuesday, read: “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make naira notes available through automated teller machines during the yuletide season.

“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”

The fine will be debited directly from the banks’ accounts with CBN.

 

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FG To Spend N8Bn On Orientating Nigerians On Payment Of Electricity Bills – Minister

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The Federal Ministry of Power is proposing to spend N8 billion to orient Nigerians on prompt payment of electricity bills in 2025.

The Minister of Power, Adebayo Adelabu, disclosed this while defending the ministry’s budget before the National Assembly joint committee on power on Monday, January 13.

According to Adelabu, the advocacy would be done through social, digital and print mediums in order to reach all Nigerians. Adelabu explained that many Nigerians need orientation to realise that the power sector is a national asset that needs protection.

“We are a people of over 200 million strength. So we need to go through all the loopholes, through social media, through digital media, through the print media, to actually orientate and do this advocacy. So we have N8 billion.

In terms of advocacy, we believe that our people need to be re-educated. They need to be re-orientated to know that the power assets are national assets, and we should all jointly own it.

Our people need to know that they should avoid power theft. When they see something, they must say something. Our people need to know that they must pay their bills regularly. All these need to be passed across. We believe that the power sector needs to do a lot of advocacy, re-orientation and re-education of our people” Adelabu said

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Why National Grid Will Continue To Collapse – FG

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Minister of Power, Adebayo Adelabu, has said that the national electricity grid will remain prone to collapse.

According to the Minister, this was due to the government’s inability to repair a crucial transmission line in the northern part of the country owing to persistent insecurity.

Adelabu said this on Monday during the 2025 budget defense session with the Senate Joint Committee on Power.

The Minister said that the Shiroro-Kaduna-Mando line, which had been out of service since a vandalism incident in October 2024, had caused immeasurable loss to the nation.

He pointed to this as a major reason for the frequent collapse of the national grid.

“The Kaduna-Shiroro-Mando line was one of the two major lines transmitting power to the north.

“The second, the Ugwuaji-Makurdi line, was also vandalized but has been repaired.

“The Shiroro-Mando-Kaduna line, however, remains down due to insecurity.

“This is why our grid is so fragile, as it relies on a single line, causing unnecessary strain,” he said.

Adelabu said the government can only work on quicker restoration when the power grid collapses.

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