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Court blocks Oyo State Govt.’s accounts in four banks over N3.4bn debt

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Makinde Explains Delay In Emergence of New Aalafin, Soun, Swears In New CJ

 A High Court of the Federal Capital Territory (FCT), Abuja has issued an order attaching funds standing to the credit of the Oyo State Government and its agencies in four banks.

Justice A. O. Ebong issued the order while ruling on a motion ex-parte for garnishee order nisi filed by the ex-chairmen and councilors led by Bashorun Majeed, Bosun Ajuwon and Idris Okusesi.

The affected banks are First Bank, United Bank for Africa (UBA), Wema Bank and Zenith Bank.

Justice Ebong ordered the banks to show cause why the order nisi should not be made absolute.

The ruling on the motion marked: FCT/HC/BW/M/238/2023, was delivered by the judge on March 2 and a certified true copy (CTC) sighted on Sunday in Abuja.

The funds, according to court filings, are to settle the outstanding balance of  N3,374,889,425.60 from the judgment debt owed some former Local Government chairmen and councillors sacked on May 29, 2019, before the end of their tenure by Gov. Seyi Makinde of Oyo State.

The garnishee proceeding, initiated for the chairmen and councillors by their lawyer, Musibau Adetunbi, SAN, is in execution of a judgment they got against the governor and six others from the Supreme Court on May 7, 2021.

The ruling reads: “A garnishee order nisi is hereby granted to attach the judgment debtors’ accounts with garnishees Nos. 1 to 4 in the motion ex-parte, for the purpose of settling the judgment debt outstanding in the sum of N3,374,889,425.60 as awarded by the Supreme Court and conceded by the judgment debtors in Exhibit 11 attached to the applicant’s motion.

“The garnishees (1st to 4th) shall file affidavits and attend court on the next adjourned date to show cause why the order nisi should not be made absolute.

“A copy of this order nisi shall be served on the judgment debtors as required by law. This matter is hereby adjourned to 4/4/2023 for continuation.”

It was gathered that the judgment creditors have since effected service of copies of the order on the judgment debtors as ordered by the court.

Listed as judgment debtors with the Oyo State Governor are the state’s Attorney General, the Commissioner for Local Government and Chieftaincy Affairs, the Accountant General, the House of Assembly, its Speaker and the Oyo State Independent Electoral Commission (OYSIEC).

The ex-Chairmen and Councillors were elected in the election conducted by OYSIEC on March 12, 2018, for a three-year term.

Upon learning that Makinde, who took office on May 29, 2019, had planned to sack them, the Chairmen and Councillors sued before the High Court of Oyo State to challenge the constitutionality of Sections 11 and 12 of the Oyo State Local Government Law 2001, which empowered the governor and the House of Assembly to dissolve LG executives in the state.

In its judgment on May 6, 2019, the Oyo State High Court declared Sections 11 and 12 of the state’s Local Government Law 2001 as unconstitutional, on the grounds that it violated Section 7(1) of the Constitution.

Despite the subsistence of the judgment, Makinde sacked the Chairmen and Councillors on May 29, 2019, and subsequently appealed the judgment.

The Court of Appeal, in its judgment on July 15, 2020, set aside the judgment of the High Court, a decision the affected Chairmen and Councillors appealed at the Supreme Court.

In its judgment on May 7, 2021, a five-member panel of the apex court, presided over by Justice Kudirat Kekere-Ekun, allowed the appeal marked: SC/CV/556/2020 and set aside the decision of the Court of Appeal.

The apex court, which awarded a cost of N20 million against Makinde, ordered that the ex-Chairmen and Councillors, who were unlawfully sacked by the governor, be paid their salaries and allowances from May 29, 2019, to May 11, 2021, when their tenure ought to have expired.

In the lead judgment by Justice Ejembi Eko, the Supreme Court came down hard on Makinde, who it found, acted arbitrarily and undemocratic.

Justice Eko said: “I will not conclude this appeal without commenting on the disturbing ugly face of impunity displayed by the Governor of Oyo State (1st respondent herein) on 29th  May 2019, tantamounting  to executive lawlessness, outrightly and vehemently condemned by this court in the case of the Military Governor of Lagos State v. Ojukwu.”

He noted that, even before appealing the High Court judgment, Makinde on May 29,  2019  “issued imperial directives dissolving all democratically elected local Government Councils in Oyo State in spite of the subsisting judgment of Oyo State High Court in the suit No. 1/347/2017.

“Series of applications were filed by the judgment creditors, the present appellants, to restrain, particularly the 1st respondent (the Governor), from embarking on the self-help designed to contemptuously frustrate the judgment of the High Court.

“He was not dissuaded. He proceeded in his imperial omnipotence to continue in his untrammelled, albeit invidious contemptuous, disregard for subsisting judgment of the High Court.

“It is unthinkable that a democratically elected government would embark on these unwholesome undemocratic tendencies. These tendencies no doubt endanger democracy and the rule of law.

“It is almost becoming universal phenomena that the democratically elected Governors have constituted themselves into a specie most dangerous to democracy in this country.

“They disdainfully disregard and disrupt democratically elected Local Government Councils and appoint their lackeys as caretaker committees to run affairs of Local Governments,” Justice Eko said.

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Economy

NGX Market Capitalisation Gains N836bn

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Tantalizers, NASCON lead the losers’ chart 

The Nigerian Exchange Ltd.(NGX) market capitalisation, which opened at N57.697 trillion on Tuesday, gained N836 billion or 1.45 percent closing at N58.533 trillion.

Also, the All-Share Index rose by 1.45 percent or 1,480 points to close at 103,524.44, as against 102,044.84 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 38.45 percent.

Interest in Telco heavyweight and Tier-one banks such as MTN Nigeria, UBA, Access Corporation, Guaranty Trust Holding Company(GTCO), and sustained interest in Transcorp Power(TransPower) kept the market in the green.

Market breadth closed positive with 35 gainers and 14 losers.

On the gainer’s chart, UBA led in percentage terms of 10 to close at N25.30, followed by MTN by 9.98 percent to close at N243.50 per share.

Julius Berger also gained 9.71 percent to close at N61, While Access Corporation rose by 9.51 percent to close at N22.45 per share.

Veritas Kapital Assurance went up by 9.38 percent to close at 70k per share.

Conversely, Tantalizers led the loser’s chart by 7.89 percent to close at 35k, and National Salt Company of Nigeria(NASCON) trailed by 6.77 percent to close at N53.70.

Morison Industries Plc shed 6.62 percent to close at N1.41, C&I Leasing lost 6.45 percent to close at N3.48, while Cutix Plc dropped 6.30 percent to close at N2.53 per share.

However, analysis of the market activities showed trade turnover settled lower, relative to the previous session.

The value of transactions was also down by 16.76 percent.

A total of 565.79 million shares valued at N14.23 billion were exchanged in 11,519 deals,  compared to 436.90 million shares valued at N17.09 billion exchanged in 11,344 deals traded on Monday.

On the activity chart, Transcorp led in volume with 170.72 million shares traded at a value of N3.13 billion, Access Corporation followed by 48.57 million shares valued at N1.06 billion.

GTCO sold 39.04 million shares worth N165.80 million, Jaiz Bank traded 36.78 million shares valued at N72.51 million and UBA transacted 31.96 million shares valued at N796.24 million

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Economy

SIFAX Group Appoints Basil Agboarumi As Executive Director

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SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director of corporate and Intergovernmental Affairs.

Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

Basil Agboarumi, Executive Director, Corporate and Intergovernmental Affairs

After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange while many airlines, both local and foreign, signed business deals with the company due to its excellent and cutting-edge services which include passenger handling, ramp handling, and cargo handling.

Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.

He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

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Economy

NGX All-Share Index Crosses 100,000 Mark

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Guinness Nigeria and FTN Cocoa Processors lead the losers’ table

The All-Share Index, one of the performance indices of the Nigerian Exchange Ltd.(NGX), on Thursday, crossed a 100,000 mark for the second time in the year.

Having crossed the mark on Jan. 24, and later dropped, the All-Share Index specifically added 0.75 percent or 744 points to settle at 100,335.3, compared to 99,591.64 posted on Wednesday.

Consequently, investors gained N420 billion or 0.75 percent, as the market capitalisation which opened at N56.310 trillion, closed at N56.730 trillion.

Also, the Year-To-Date (YTD)return rose to 33.19 percent.

Improved buy interest in the shares of Dangote Sugar, MTN Nigeria, Transcorp Power, Oando Plc, and Cornerstone, alongside other top gainers drove the equity market to a positive terrain.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 9.11 percent.

However, market breadth closed negative with 33 losers and 25 gainers.

On the gainers table, Dangote Sugar and MTN led in percentage terms of 10 percent each to close at N50.60 and N201.30 per share, respectively.

Transcorp Power followed closely by 9.99 percent to close at N351.30, while Juli Plc added 9.96 percent to close at N4.97 per share.

National Salt Company of Nigeria (NSCN) rose by 9.92 percent to close at N47.65 per share.

On the other hand, Guinness Nigeria and FTN Cocoa Processors led the losers’ table by 10 percent each to close at N45.90 and N1.53 per share, respectively.

Transcorp also lost 9.95 percent to close at N17.10, Ikeja Hotel shed 9.93 percent to close at N6.08, while Redstarex declined by 9.87 percent to close at N3.38 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

A total of 554.72 million shares valued at N17.73 billion were exchanged in 9,708 deals, compared to 416.48 million shares valued at N19.51 billion exchanged in 9,338 deals.

On the activity table, Transnational Corporation (Transcorp) led both in volume and value with 301.36 million shares traded in value of  N5.65 billion.

Sterling Nigeria sold 33.32 million shares worth N150.78 million, while FBN Holdings traded 23.21 million shares valued at N773.91 million.

Also, United Bank of Africa (UBA) transacted 18.38 million shares worth N400.29 million and Zenith Bank sold 17.08 million shares valued at N583.93 million.

Reacting, a stockbroker with Premium Capital, Mr Victor Ibrahim, said that the improved performance of the equity market was due to renewed investors’ expectations from the current government’s policies.

Ibrahim stated in Lagos that investors were keying into the future benefits of the economy by boosting their investment in the equity market.

He said, “The stock market is a leading indicator of the Nigerian economy and as such, with government policies such as the free-flow economy, investors confidence in our market has been boosted.

“The artificial scarcity of dollars in order to underprice or devalue the Naira is also another indicator.

“This is because the price of stocks in the Nigerian equity market is cheaper for foreign investors and those local investors who have dollars in reserve.

“While the Nigerian economy may presently appear tough, investors are keying into the future opportunities in the current government’s policies with the belief in the capacity of President Bola Tinubu.”

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