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Firms Slam N7bn Suit on FCMB over Breach of Contract
Two limited liability companies, Sunlek Investment Limited and Sunsteel Industries Limited have slammed a N7billion suit on First City Monument Bank (FCMB) Plc over alleged breach of contract.
In a 126 -paragraph of statement of claim accompanied by 27 paragraphs of a witness’ sworn oath and filed before a Federal high court sitting in Lagos south west Nigeria by a Lagos lawyer, Mr. John Olusegun Odubela SAN ,the two companies alleged that they operated loan accounts with First City Monument Bank. It was from there disbursement was made for all letters of credit /loan facility granted to them by the bank for the importation of raw materials.
However since 23rd May, 2013 when the bank entered into an agreement to grant them loan, and open a loan facility account for them till date, they have not been given the particulars of the loan facility account neither has any statement of account of this loan account been made available to them.
The companies alleged further that by a commitment letter dated 23rd May,2013 and the term sheet for facility duly signed /executed by the two parties, FCMB committed and undertook to fund on fully-underwriten basis the debt finance (importation of goods) of $1.5 million and N422.5 million .Thereafter other loans facilities were granted to the companies by the bank.
The total amount of the letters of credit opened by the bank in favour of the companies is $8 million out of which sum the companies contributed 10% based on the terms of the grant of the various offers for facility utilized to open letters of credit from 22nd ,March 2013 to September, 2017. The loans facilities were well secured.
The companies contended that from the available records available to them,it was reflected that they have fully repaid their indebtedness to the Bank
However the companies were bewildered when they received the bank’s letter that their indebtedness to the bank as at 14th of March,2019 was in the sum of N1.1 billion that the debt should be liquidated within 14 days,despite the fact that they had fully repaid the loan they took from the bank.
Consequently, they engaged the services of an accounting firm to audit their account,the plaintiff by their letter and their solicitor’s letter requested for statements of accounts of the loan accounts from the bank, but the bank deliberately failed to make available the said statement of account.
However from the forensic analysis of their accounts, the plaintiffs contended that they are not in any way indebted to the bank.
From the forensic audit report it was discovered that there were two transactions carried out on letter of credit, wherein substantial volume of the product were damaged. The value of items purchased by the letters of credit was in the sum of $2million for the importation of cold rolled steel strips, galvanized steel strips and Zinc wire from Chemetals(HK) limited Unit 1105H/F Lippo Center 89,Queens Way Hong Kong.
FCMB is solely and unilaterally liable to undertake all the risk Insurance policy Clause A for the consignment/raw material to be imported by virtue of the letter of credit.
The bank solely negotiated insurance policy obtained for the products purchased and appointed Mansard Insurance Plc to provide insurance cover Clause C for the importation of the consignment.
Upon taking delivery of the consignment after payment of custom duties and port charges, it was discovered that large volumes of the said consignments were in various forms of damaged conditions.
The companies informed the bank about the damaged consignment and the need to pursue insurance claim for the damage,the bank requested for documents which were presented to them to pursue the claim.
However, the agent of the bank sent a report to the companies to inform them that from the nature of damages to some of the products, the insurance policy, being a Clause C policy as undertaken by the bank is not sufficient to cover the nature of loss from the said damages to the products. The total value of the consignment damaged is in the sum of $628,386.23 and N336.1 million.
The bank ought to have undertaken an all risk insurance policy cover with the insurance company. As a result of the damages to the consignment,they were not fit for use and could not be refined in the plaintiffs machine and remained in the factory as junk or waste material.
The companies averred that they had suffered financial loss as a result of the breach of contract in the sum of N884.9 million which has negatively affected their business operation since 2014 till date. They averred that they are entitled to claim damages for breach of contract against the bank that had by its various acts of breaches of the various letters of offer for facility caused great loss to their business.
Consequently the companies’ claim against FCMB jointly and severally are as follows :
General damages in the sum of N5billion.
A declaration that the plaintiffs are not indebted to the bank in any sum premised on the fact that they had settled all their indebtedness on the facilities granted to them by the bank.
A declaration that the bank breached the terms of letter of credit and is liable for the loss of the letters of offer on importation, in the sum of $2million.
A declaration that the bank is liable to refund to the plaintiffs N884.9 million,being the losses uncured on the damaged consignment purchased through letters of credits,and failure and refusal of the bank to obtain an all risk insurance policy for the shipment of the said consignment.
An order for the payment of N826.9 million being the total sum wrongly debited on the companies’ account by the bank.
An order of the court restraining FCMB from appointing and or registering any instrument of appointment of an official receiver or any instrument whatsoever made for the purpose of enforcing the security for the payment of alleged indebtedness in the sum of N1.1 billion being allegedly claimed against the plaintiffs by the bank .
Cost of litigation assessed at N250million


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Investors Affirm Support For Fidelity Bank Plc With 238% Oversubscription In The First Phase Of Equity Capital Raise

Leading financial institution, Fidelity Bank Plc, has announced the successful conclusion of the first tranche of its equity capital raise through its Public Offer and Rights Issue (the Combined Offer) following the completion of the capital verification exercise conducted by the Central Bank of Nigeria (CBN), and approval of the Basis of Allotment by the Securities and Exchange Commission (SEC).
A total of 108,046 applications for 23,791,687,463 Ordinary Shares totaling ₦231,968,952,764.25 were received on the Public Offer. Out of these, 107,588 applications for 23,768,724,000 Ordinary Shares totaling ₦231,745,059,000.00 were found to be valid based on the terms of the Offer and the CBN’s verification. However, 458 invalid applications for 22,765,143 Ordinary Shares totaling ₦221,960,144.25 were rejected, while 548 applications which included odd lots amounting to 198,320 Ordinary Shares (i.e. ₦1,933,620.00) were also rejected. The Public Offer was 237% subscribed and 150% allotted.
With respect to the Rights Issue, 7,559 applications for 4,430,290,237 Ordinary Shares totaling ₦40,980,184,692.25 were received of which 656 applications for 23,037,442 Ordinary Shares totaling ₦213,096,338.50 were invalid based on the terms of the Rights Issue. The Rights Issue was 137.73% subscribed and 100% allotted.
“We are delighted to announce the successful completion of the first phase of our capital raising initiatives through a Public Offer and Rights Issue. The positive result recorded in our Combined Offer is a testament to the strength of the Fidelity Bank franchise in the capital market. It is both gratifying and humbling to note this level of investor confidence in our Bank. We extend sincere gratitude to our investors for their continued confidence in the Bank, as evidenced by the 237.92% and 137.73% oversubscription of our Public Offer and Rights Issue respectively. As we go into the next phase of our capital raising drive, we reaffirm our commitment to providing cutting-edge financial solutions to our customers and sustainable returns to our stakeholders”, commented Dr Nneka Onyeali-Ikpe, OON, Managing Director and Chief Executive Officer, Fidelity Bank Plc.
The funds realised from this initial phase of capital raising will be deployed to local and international business expansion, enhancement of technology infrastructure and deepening customer service initiatives.
With the successful conclusion of the first phase of capital raising, the Board of Directors recently obtained the approval of shareholders to commence the second phase and is confident of meeting the new regulatory capital for banks with international authorisation before the CBN’s deadline of March 31, 2026.
Following the CBN’s publication of the revised minimum capital requirement for banks in March 2024, Fidelity Bank with its combined offer of June 2024, became the first financial institution undertake a public offer on the Nigerian Exchange Group.
From an offer price of N9.75 per share for the Public Offer and N9.25 per share for the Rights Issue in June 2024, the Bank’s shares traded at a high of N21.15 on February 7, 2025, a growth rate of over 116%, the highest for any financial institution in the banking industry.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 251 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. It was also recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
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Video: I Won’t Apologise For Your ‘Forgetfulness’ – Naja’atu Muhammad dares Ribadu

Founder and Chairman board of trustees of the Northern Star Youth Initiatives, Hajia Naja’atu Muhammad, has reacted to reports of the National Security Adviser (NSA), Nuhu Ribadu, demanding apology over her viral TikTok video.
Naja’atu, in a recent video sighted by our correspondent, dared the NSA to go to court if he has issues with her statement, saying she’s not ready to apologise for his ‘forgetfulness’.
Meanwhile, Hajia Muhammad, in the viral TikTok video, claimed that the current NSA is serving in President Bola Tinubu’s government, whom he had criticised as ‘corrupt’ when he was the Chairman of the Economic and Financial Crimes Commission (EFCC).
However, Tribune Online reports that the NSA Ribadu, through his lawyer, Dr Ahmed Raji (SAN), said he never publicly or privately accused Tinubu of being a corrupt government official.
The NSA therefore urged Naja’atu Muhammad to tender an unreserved apology, noting that the damage had been done to his reputation.
But Naja’atu Muhammad, while responding, said she stood by her original statement and would never be intimidated by those she referred to as “attack dogs” from the NSA.
She said, “There’s no retreat. No surrender. No apologies to Nuhu Ribadu. I’m speaking in response to the recent threats and intimidation by Nuhu Ribadu using his attack dogs and his lawyer, Ahmed Raji and Co.
“Regarding my statement that the then chairman of the EFCC had publicly accused the then Governor of Lagos State, Ahmed Bola Tinubu of being and I quote ‘a corrupt government official who will not escape justice’.”
Continuing, she noted her acknowledgment of the possibility of Nuhu Ribadu to have forgotten or retracted his past comment, but stated that her words accurately reflected her views on the matter already in public domain.
“While I acknowledged that Nuhu Ribadu might have forgotten or chosen to retract his comment from the past, I stand by my statement and do not believe an apology is warranted. Apology to whom exactly? To President Tinubu for the earlier comments made by his now National Security Advisor? Or apology to Nuhu Ribadu for his forgetfulness and master-serving mindset.
“I stand by my original statement and will not be retracting it. My words accurately reflect my views on the matter based on what is already in the public domain. And I do not believe an apology or retraction is necessary,” Naja’atu Muhammad added.
The Northern Star Youth Initiative leader urged the NSA to approach the court as he has threatened, saying, “I will not compromise my position to appease Nuhu Ribadu and his attack dogs. I will not retract my statement nor will I apologize for speaking the truth as I see it. You have issues, as you’ve threatened; please go straight to the court. But nothing will silence me.”
Video:
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Speaker Mojisola Meranda Calls For United Action To End Female Genital Mutilation

Lagos Speaker Mojisola Lasbat Meranda has reaffirmed commitment to ending Female Genital Mutilation (FGM), calling for a united front against the practice.
In a statement marking the International Day of Zero Tolerance for Female Genital Mutilation, Meranda condemned the violation of human rights that affects millions of girls and women worldwide.
Meranda emphasised the need for accelerated efforts to end FGM, stressing that it’s a responsibility that goes beyond governments to every individual. She vowed to push for policies that raise awareness and protect potential victims, ensuring the health, dignity, and rights of young girls are safeguarded.
She said: “This year’s theme, #StepUpThePace, is a call to action. We must accelerate efforts to end this barbaric practice once and for all. It is not just the responsibility of government but of every individual – whether you are a legislator, a healthcare worker, a professional or simply a concerned human being.
“We must unite to protect the future of our daughters and ensure their health, dignity and rights are safeguarded. I commit to pushing for policies that protect girls, raise awareness and put an end to this atrocity.”
The Speaker urged everyone to take action in their respective capacities to put an end to FGM, emphasizing that together, a world free of this harmful practice is possible.
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