…Multimillion Worth of Chemicals destroyed,3000 staffers stranded
All over the world, banks serves as support system to businesses, either local or international. But, in Nigeria, some sections of the financial sector have decided to become a clog in the wheel of progress of companies established by hardworking and committed personalities in the country. Such is the present situation of Necit Nigeria Limited, an internal commodity trading company that operates with the idea of creating strategic job opportunities for Nigerians, obtaining over ten lubricant licenses spread across the country with over a staff strength of 3,000 workforce and headed by legendary business tycoon, Dr. Emmanuel Iheagwazi, a visionary with a very strong focus of giving both the young and old the opportunity to put foods on their tables.
However, with all the patriotic efforts of Dr. Emmanuel Iheagwazi, Stanbic IBTC chaired by Dr. Yinka Sanni and managed by Mr.Wole Adeniy, a seasoned banker with over three decades of experience in financial operations, process management and business support to all industries in any sectors is not in any ways, supporting the positive cause of NECIT Nigeria Limited, a company reputed with track record of transparent transactions with optimum financial openness.
Mr. Wole Adeniyi
MD, Stanbic Bank
It is quite obvious and crystal clear that Stanbic IBTC has proven that it is a financial institution that has no base of support for any businessman or organization, no matter how important their ventures are. It is also very painful that Stanbic IBTC is erroneously planning to throw thousands of Nigerians into the labour market by threatening to shut down the factories of NECIT Nigeria Limited in Sokoto, northern part of Nigeria.
The company’s factory in Sokoto State was stormed by the receiver manager, appointed by Stanbic Bank Plc to lock up and take over the company’s assets. The day will always remain indelible as operations was on in the factory when security operatives and thugs were used to harass workers and forcefully send them parking, leaving billions of naira worth of chemicals used for production to be destroyed. It was indeed an eyesore and an act of irresponsibility from a seemingly reputable financial institution set up to assist businesses and individuals. For a bank that claimed to have 30 years of experience in banking and with reputable bankers, it is absurd that such a bank will stoop so low to aggravate the pains of over 3,000 Nigerians working in NECIT Nigeria Limited facility in Sokoto State.
The bank willingly, threw people out irresponsibly and forced them to be jobless, hungry and lacking, all which may result to crimes and criminals activities by those who are made jobless. Reputable institutions like the judiciary, police and other law enforcement agencies should be involved in this case to ensure optimum justice and democratic values. NECIT Nigeria Limited is a company that is promoting the Nigerian brand, enhancing humanity and building a very strong structure for the country’s economic base, but a bank from nowhere is illegally threatening the existence of the company. In a twist of fate, Stanbic IBTC is not helping any Nigerian business, rather, the bank is involved in supporting those that are not economically beneficial to the country.
According to Seyi Onanuga, the Financial Controller of NECIT Nigeria Limited, the relationship between NECIT and Stanbic IBTC started very okay with the performance of the company and the smoothness of business being done with them and that informed the bank to arrange a collateral management with NECIT in such a way that when we have products that we are bringing into Nigeria, we’ll open with 30% equity contribution which we call investors’ market today. That means we’ll provide at 110% cover which result to additional 10% cover on the LC value or on the invoice value. So, we have provided 30% cover on the transaction and after the negotiation, we are expected to balance the 70%. In actuality, we provided the actual amount by the time the vessel arrives and the products were manned by the collateral manager provided by the bank and the products were stocked in the tank farm and what they do is, as we pay money into their account, the bank will order the collateral manager to release the products.
Dr. Emmanuel Iheagwazi
Chairman, Necit Nigeria Ltd
As they release the product to us, we were also able to sell to our customers who pay and that smooth trend continue until 2020 when Stanbic IBTC told us that we have finished the cycle of the business that we have done and that is, there is an unsettled interest rate in the account after we have paid all the 10% and the question came that if we have done what we are supposed to do, we wouldn’t be having an outstanding interest of N540,000,000.00 (Five Hundred and Forty Million Naira) on the account and after the bank approached us, they pleaded for the management of NECIT to support them because if the company say it is not going to pay, it is on them to settle it.
After a thorough deliberation by the company’s management, we wrote off about N90,000,000.00 (Ninety Million Naira) from the N540,000,000.00 and was restructured into N460,000,000.00 which was spread for two years, that’s 24 months. They also promise to prioritize our payment structure for us to have smoother relationship. Unfortunately, the relationship went soar and in 2022, we settled the term loan and the trade line is still outstanding. We have over 7 million dollars with the bank and after the settlement of the term loan for 24 months, paying roughly 22, 23 million naira every month, Stanbic IBTC still came back and lay the complain and this is after we have told our customers to pay directly into the bank’s account.
They promise to prioritize our transactions to the CBN and Stanbic IBTC was using our money and getting income and external revenues. We have written severally to the bank, complaining of their insensitivity and inactivity. As a matter of fact, we have gone to the bank to complain to them but the MD told us to relax that it’s a problem between them and CBN which they were yet to settle. In 2023, they came up that we are owing over 3 million dollars and this is quite frustrating and discouraging.
The founder and Chief executive of NECIT, Dr. Emmanuel Iheagwazi added his own comment by saying that he was told that the government stormed his company in Sokoto State with court injunction and they gave to the workers since I was not there at that particular time. Within two to three hours, they came up with another paper and they said is to possess the factory. I was surprised that bank can do this kind of dirty game and this bank, am not owing them. I was surprised of this kind of tactics. So when the staff refuse to sign the paper, they forcefully pursued the staff away and locked the company up. Funny enough, on that day, our raw materials came from Lagos and there was no way we can pack the raw materials that we use to work. So, we have to offload the raw materials by the compound of the factory.
The real issue is that I was one of the best customers of Stanbic IBTC. In 2016 and to my surprise, the bank came back and told us that we were owing them N450 million and I said no, because we are trading under the agreement between us. They even came up with the dubious fact that we are owing them up to N1.1 billion. I insisted that we are not owing them. I called the MD and the ED to inform them about our transaction which was utterly misquoted and mis-interpreted. They now told us that they can write off the N450,000,000 but that they can no longer do business with us but they can turn it into term loan and give us $7 million so that we can use it to be trading so that we can be able to pay that outstanding in quote. So, we quickly agreed since they said they are going to give us money to trade. We say, okay, give us the seven million dollars and turn the other N450,000,000 in quote to term loan. They also told us that they will give us the opportunity of paying that money without having issues.
We accepted and they gave us the seven million dollars and we imported another cargo and we did the same way we did other. So, after three months which doesn’t take us up to normal six months, we finished selling the goods. Our customers pay through the bank to buy our goods and the bank released the goods to the customers. So, we later discover that they did not liquidate the $7 million dollars we are doing business with which signified that we are still owing them,even after they know we have paid off. I have to arrange for an appointment with the MD and told him this. The MD replied me that he is not disturbing me and that they are having an issue with the CBN.
So, all of a sudden, the government was changed and the new government crashed the naira against the dollar. Now, the same bank wrote us that we should bring extra after they have devalued the naira to 500%. In another country, if devaluation happen only one percent, there will be revolution. Now, the bank wrote me that I should bring extra money and I asked if they are with their senses. The goods we sold through you in 2021, you have not refunded the money, after three years, you are informing us that we should bring extra money, from where would we get the money from. Thank God I went with the Financial Controller, so the bank’s MD cannot deny it.
However, as investigative journalists, we need to balance the story and hear from the side of Stanbic IBTC and this is the comment from the Chief Executive Officer, Mr. Wale Adeniyi who responded that “Thank you for reaching us, I can confirm that NECIT Nigeria Limited is currently Indebted to Stanbic IBTC due to trade exposure related to a business deal concluded in 2021. Despite our efforts to resolve the matter, the customer’s indebtedness remains outstanding. We were therefore left with no option than to appoint a receiver manager who has taken over the company’s pledged assets in Sokoto, Nigeria.