FORMER minister of power resources, Mr. Barth Nnaji, was among prominent former Nigerian government officials and businessmen who would not enjoy access to credit facilities from financial institutions in the country until further notice, according to a directive from the Central Bank of Nigeria on Friday.
Saying it was a move towards “strengthening financial stability and entrenching a culture of financial discipline,” the apex bank blacklisted 113 companies, including 419 directors and shareholders, as debtors who have reneged on loan agreements made with banking institutions in the country.
Other important personalities on the list include Mr. Femi Otedola, Alhaji Sayyu Dantata, Dr. Wale Babalakin, Sir Johnson Arumemi-Ikhide and Mrs. Elizabeth Ebi.
The directive was contained in a circular released on Friday, titled Prohibition of New Credit Facilities To Debtors of the Asset Management Corporation of Nigeria, denying the companies and said persons further access to credit facilities until their financial obligations to the asset management company is fulfilled, plus outstanding interests.
Financial Deposit Money Banks were also warned that any bank found circumventing or disobeying the directive would be required to pay the full amounts owed to the Asset Management Company of Nigeria.
The governments of Zamfara State and Cross Rivers states were also affected, allegedly because Tinapa Business Resort, owned by Cross Rivers state government, and the accountant-general of Zamfara, failed at meeting the terms of their loan agreements.
“Any DMB that is in breach of these guidelines shall be required to make an immediate provision of 100 per cent of total principal and interest outstanding in the account of the customer and related parties, in addition to whatever regulatory penalties the Central Bank of Nigeria may decide to impose,” read the circular, signed by Mrs. A.O. Martins, the Central Bank’s director of banking supervision.
A detailed list of the debtors included Zenon Petroleum, owned by Otedola, indebted to banks to the tune of N192.4bn; MRS Holdings Limited, belonging to Dantata (N119.98bn); Seawolf Limited (N98.32bn); Arik Air Limited, belonging to Arumemi-Ikhide (N85.481bn); NITEL Plc/M-Tel (N71.547bn); and Capital Oil and Gas Limited, belonging to Ifeanyi Ubah (N48.014 billion).
Others are Falcon Securities (N162.9bn); Rockson Engineering Limited, also owned by Arumemi-Ikhide (N60.475bn); BGL Securities (N6.44bn); Rahamaniyya Oil & Gas Limited (N46.38bn); Bi-Courtney Limited (N20.214bn); Geometrics Engineering, owned by Bart Nnaji (N19.76bn); Aero Contractors Company, belonging to the family of Olorogun Michael Ibru (N32.579bn); and Tinapa Business Resort (N18.509bn).
Also among the list of those who had their access to loan facilities withdrawn are Nestoil Limited, owned by Ernest Azudialu (N13.506bn); Dorman Long Engineering (N9.667bn); Ascott Offshore Nig. Ltd, belonging to ex-banker, Henry Imasekha and the Berkley Group (N64.728bn); Gitto Constuzioni (N11.838bn); and Dansa Foods (N14.880bn) whose directors, Sani and Abdul Dangote, are brothers of billionaire business magnate, Alhaji Aliko Dangote.