Indications have emerged that some billionaire debtors, who were barred by the Central Bank of Nigeria alongside their firms, directors and shareholders from securing further credit facilities from local banks, are still getting loans.
In a move aimed at instilling discipline in the banking sector, the CBN barred banks in the country from extending further credit to 113 companies and 419 directors/shareholders as a result of their reluctance to pay back their previous loans despite the purchase of the debts at an agreed price by the Asset Management Corporation of Nigeria
Our correspondent gathered on Tuesday that although some of the debtors had commenced negotiations with AMCON, others had devised different methods of getting credit from the banks.
Investigations by our correspondent revealed that while some of the companies were using top directors not affected by the CBN ban to secure loans, others were using subsidiaries of the main companies to get credit facilities.
Our correspondent also gathered that the banks were not oblivious of the methods devised by the companies to secure loans.
When contacted, the Director, Corporate Communications, CBN, Mr. Ugo Okoroafor, said the directive by the CBN was still effective.
He said, "I'm not aware of this development, the debtors remain barred from getting loans. However, if a debtor has met his obligation with AMCON, he should be able to get loans from banks.
"But that depends on the bank if it is willing to grant such customer further credit. But AMCON should know the debtors that have loan obligations."
On his part, the Head, Corporate Communications, AMCON, Mr. Kayode Lambo, said, "The directive was given by CBN and not AMCON. But if the debtors have met their obligations, they are free to get fresh loans from banks. There are many who have met their obligations, and of course, they can get loans from banks."
A circular by the CBN last year had said that the restriction would apply to companies where the outstanding value of loans purchased by AMCON amounted to N5bn or above as at the day of purchase, without regard to the actual amount paid by AMCON.
The circular, which was signed by CBN's Director, Banking Supervision, Mrs. A. O. Martins, stated, "It has become necessary to stop debtors, who failed to repay their loans to banks and had these loans subsequently transferred to AMCON, from further enjoying credit facilities from Deposit Money Banks until they fully repay agreed outstanding sums to AMCON."
A detailed list of the blacklisted debtors showed that the worst hit by the directive were Zenon Petroleum, owned by Mr. Femi Otedola, which was indebted to banks to the tune of N192.4bn; MRS Holdings Limited, which belongs to Dantata, with N119.98bn indebtedness; Seawolf Limited, N98.32bn; Arik Air Limited, belonging to Mr. Arumemi-Ikhide, N85.481bn; NITEL Plc/M-Tel, N71.547bn; and Capital Oil and Gas Limited, which belongs to Mr. Ifeanyi Ubah, N48.014bn.
Others are Falcon Securities, whose Managing Director, Mr. Peter Ololo, was arraigned alongside several bank executive officers in 2009 by the Economic and Financial Crimes Commission, N162.9bn; Rockson Engineering Limited, owned by Arumemi-Ikhide, N60.475bn; BGL Securities, N6.44bn; Rahamaniyya Oil & Gas Limited, N46.38bn; Bi-Courtney Limited, N20.214bn; and Geometrics Engineering, owned by former Minister of Power, Prof. Bart Nnaji, N19.76bn.
The restriction also applies to Aero Contractors Company, owned by the family of Olorogun Michael Ibru, N32.579bn; Tinapa Business Resort, N18.509bn; Nestoil Limited, belonging to oil and gas entrepreneur, Mr. Ernest Azudialu, N13.506bn; Dorman Long Engineering, N9.667bn; Ascott Offshore Nigeria Limited, belonging to former 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 the brothers of business mogul, Alhaji Aliko Dangote.
