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EFCC Grills Arik’s Receiver Manager, Others Over Financial Impropriety

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The Economic and Financial Crimes Commission (EFCC), on Thursday, detained Asset Management Corporation of Nigeria (AMCON) Receiver Manager, Kamilu Omokide over alleged financial impropriety, asset stripping and other underhand dealings.

BN AFRICA understands that the Receiver Manager was detained for questioning after he finally responded to the EFCC’s invitation.

EFCC started investigating the Receiver/Manager following a recent petition written by Femi Falana SAN, who is Arik Nigeria Limited’s lawyer.

Also detained along with Omokide was Captain Samuel Caulcrick, in connection with the alleged illegal sale and tear down of $41 million CRJ 1000 aircraft, which was operated by Arik Air.

On his own part, Omokide was invited in connection with the tear down of the aircraft which he claimed the aircraft’s new owners, Alberta Aviation Capital (AAC), gave authorisation to that effect.

Falana in his petition dated April 27, alleged massive financial fraud and sale of assets reaching over N120 billion.

The petition in part read, “We are Solicitors to Arik Nigeria Limited (hereinafter referred to as “our client”), on whose behalf and specific instructions we write you. Our client operates an airline in the aviation industry by offering air transportation services for passengers and cargo in Nigeria and has been in business since 2006.

“In compliance with an ex parte Order of the Federal High Court, Lagos Judicial Division, the Asset Management Corporation of Nigeria (AMCON) appointed a receiver manager to manage our client’s assets due to its financial obligation to some banks.

“Pursuant to the said ex parte order, the said receiver manager has been overseeing the affairs of our client’s assets pursuant from 2017 to date. In the course of running the airline business, the receiver has engaged in financial mismanagement, diversion of monies, sales of assets and misappropriation of funds belonging to Arik Airline.

“The details of the financial management, diversion of monies, sale of assets and misappropriation of fund are set out below: 1. Fraudulent contracts awarded: a. Aircraft lease Agreement No. OLY-ARIK/ACMI/A321/202001-21 between Olympus and Arik Air-In-Receivership, executed on November 1, 2019 with the following details:

“Listed Lease Contracted Aircraft: A321 MSN1015 Reg# SX-ACP; Listed Contracted aircraft delivery date: 01 Feb 2020 and for consideration of the sum of N91,187,500.00 (Ninety-One Million, One Hundred and Eighty-Seven Thousand Five Hundred Naira) withdrawn from our client’s (USD) account domiciled at Keystone Bank with account No: 1006835708 on February 11, 2020. There has been no specific performance to the subject matter of the said contract up till date, no service has been carried out, nor was there aircraft or a refund of the consideration furnished for the said contract.

“A. Clobek Nigeria Limited with Company’s Registration No. 899094, a real estate firm with its registered office at Abuja purportedly entered into ACMI damp Lease Agreement with Arik Air-In-Receivership in a profit-sharing ratio of Arik 55% and 45% respectively, for one Unit aircraft B737-700 MSN 38127 (E1-GVW). However, Clobek Nigeria Limited, is neither registered nor licenced as an aviation services company by the Nigerian Civil Aviation Authority (NCAA), thereby unauthorised and ineligible to provide aviation services.

“The said company received questionable payments of N579,902,982.58 for flight operations services from Arik Air-In-Receivership. The Receiver Manager abandoned the several younger Arik Air new-generation aircraft for self-gratifying lease deals and a dubious profit-sharing arrangement. A. The receiver manager executed Aircraft Damp [A.C.M.I.J Lease Agreement with Eznis Airways LCC, a Mongolian registered airline lease of one unit Boeing 737-700 Reg No E1 – Engines (the same aircraft purportedly financed by Clobek Nigeria Limited in a profit-sharing arrangement. Some records of payments for Arik Air in Receivership to Eznis are questionable, e.g., multiple security deposits, maintenance, hotel accommodation etc for being duplicated to Clobek and conflicting with aircraft usage.

“Galactic Aviation, a Nigerian company purportedly leased 2 units of A320 aircraft A320 MSN 2388 with Registration No. LY-NZL and LY-CCK. The aircraft Reg No LY-NZL operated between April 2022 to Jan 2023 and the other aircraft Reg No: LY-CCK operated between Dec 2022 to March 2023 payments of about N4.3B were released to Galactic Aviation without records of reconciliation of accounts between flights operations and revenue management to determine equitable distribution.

“Israeli Aerospace received from Arik Air in Receivership payments of over N1.IB especially the sum of N309,500,000 for the repair of aircraft Engine R1505522 since 2018, whereas the purported engine has not been returned to base or released back into operation. This is in addition to another dubious payment for aircraft maintenance in the sum of N71,079,250.00.

“John T Aviation Solutions, a registered Nigerian company and consultancy but not a registered/certified engine service facility by the Nigerian Civil Aviation Authority. (NCAA). John T Solutions received payments of about N507,000,000 (Five Hundred and Seven Million Naira) purportedly expended for engines rental. These payments are questionable and not aligned with service consultancy.

“Global Engines sample payments reveal receipts of over N1.7B without verifiable contracts with suspected payment duplications for engines and also GEM- General Engine Maintenance sample payments reveal receipts of about N464,817,248.66 without verifiable contracts.

“Sale And Teardown Of Aircrafts – Sale and Teardown of CRJ900 MSN. 15058 with registration number, 5N-JEA. The last known location of the aircraft was, AlK Hangar Lagos. The value of the said aircraft is estimated at 31,000,000.00 USD, which was destroyed and sold without owner’s (JEM Aviation, UK) consent and regulatory approval.

“Sale and Teardown of aircraft B737-700 MSN 23640 with Registration Number 5N- MJI, the aircraft was estimated at 47,000,000.00(USD) (Forty-Seven Million U.S Dollars) was destroyed and sold without owner’s consent and regulatory approval“In the light of the foregoing, it is very correct to conclude that the receiver manager is duty bound to render account of his stewardship including but not limited to filing the statutory annual returns of the company at the Corporate Affairs Commission but has blatantly refused and/or neglected to fulfill his obligations by not filling the annual returns for the period of six (6) years of its operations.

“We have the firm instructions of our client to request you to embark on a full investigation of the criminal diversion of the sum N120,000,000,000.00 (One Hundred Twenty Billion Naira) and other financial improprieties arising from fraud, financial mismanagement and misappropriation of funds from the management of Arik Nigeria Limited Assets by the official receiver manager and his cohorts.

With His Midas Touch, Ashiru Redefines OICL’s Trajectory, Fortunes By Femi Soneye

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“Do you see a man who excels in his work? He will stand before kings; he will not stand before unknown men.” This is what the Bible says in Proverbs 22:29 (New king James Version) concerning men or women who are excellent planners, who produce excellent work, who push through obstacles, who are self-motivated and who show persistent and hardworking effort in doing something. The King James Version uses the word diligence in that chapter. Read it: “Seest thou a man diligent in his business? He shall stand before kings; he shall not stand before mean men.” The word diligence, aptly regarded as a combination of both hard work and patience, equally, perfectly approximates the major character trait of Otunba Bimbo Ashiru, the pacesetting Group Chairman of Odu’a Investment Company Limited (OICL).

Before Ashiru stepped in the chairmanship saddle at OICL, he had characteristically defined his eon with the magnitude of his accomplishments, crafting and recrafting positive narratives of how preparedness was always meeting with leadership and personal commitment or devotion to deliver on mandates. For Ashiru, the irreducible minimum in both public and private sectors engagements is hard work, together with more hard work in appreciation of rewards for his numerous exertions and achievements. This, perhaps, explains the dizzying pace at which he set out, garnered successes for posterity between June 2022 and May 2023, about a year of his ascendancy to the plum position. He is indeed restlessly embracing the future with a great optimism and reasonable expectations of what the Almighty God has in store for him.

But the command room guru is on top of his game, plotting an enviable trajectory in visioning for growth and development of the enterprise over which he presides. He is as passionate about the present state of OICL as he is about what the future holds. He has therefore, as an afficionado of worthy legacies, toed the path of stamping his imprimaturs on iconic projects that ramify all sectors in which the OICL has its presence. Whereas, he had represented Ogun State on the Board of the OICL, the seriousness with which he applied himself to the assignment would commend him for a higher calling as the intrepid Investment and Strategic Management expert was, on June 22, 2022, named as the OICL Group chairman.

For Ashiru, it was business unusual ad he hit the ground running, positing an impressive record, on June 28, 2022, just six days after stepping in the saddle, of leading the top management of the company to the signing and handing over of the license of BITA Marginal Field covered by PPL 249 to Bita Exploration & Production Company Limited, BEPL, an event that took place in Abuja. BEPL is the Special Purpose Vehicle (SPV) jointly owned by OICL and Pioneer Global & Resources Limited that will be the operator of the issued license from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

Basking in the euphoria of the successful Abuja outing, Ashiru had on July 5, 2022 held an interactive session with OICL staff members at the company’s head office. He had taken the opportunity of the session to charge the management and staff members to work assiduously to achieve the corporate goal of turning the company into a world-class conglomerate. His charge was quite understandable and aligned with his commitment to honcho a productive team in his drive to reinvigorate the company and set it on the path of maximum productivity.

According Ashiru, “achieving the dream of making OICL a global brand will require the total support of staff members as well as loyalty, team spirit and creative engagement, so that the vision, mission and the core values of the company can be upheld.” In line with the set goals, he had on August 11, 2022 lead the management team to Lagos to present to the State Governor, Mr Babajide Sanwoolu, the State Government’s Odu’a Investment Share Certificate at the Lagos House, Ikeja, Lagos. He had taken the opportunity provided by the occasion to request for more support from the Lagos State Government. He had told the governor that “Odu’a is ready to partner and work with the state government for more business opportunities in hospitality, real estate, tourism and agriculture, especially the Imota Rice Mill.”

Ashiru’s development-seeking voyage transcends the domestic front. On September 6, 2022, he led OICL team on a visit to Canada to woo Canadian investors at the Nigerian House, Ottawa. On September 20, 2022, he had continued his positive Diasporic gambit by registering his significant presence at the African Union Development Agency-NEPAD in trade collaboration with the African Export-Import Bank Afreximbank at the UN General Assembly in New York. These strategic shuttles were emblematic of his progressive leadership.

He would later, on January 10, 2023, during the OICL Board business visit to vice-president Yemi Osinbanjo (now former) at the Presidential Villa in Abuja, explained that Odu’a Investment was being transformed into a lean non-operating investment holding company to enhance transparency, focus on investment management and sustainability, traverse a path of maximum impact, and leverage the models seen succeeded in similar institutions across the globe. It was big platform to convey the critical message that OICL was not a slush fund to promote and service personal aggrandizement and greed. Apparently, matching his words with action, Ashiru on February 9, 2023 got Osinbajo to inaugurate Phase 1 of the 67 residential units of Westlink Iconic Villa in Ibadan. Westlink Iconic Estate is a joint venture project OICL and Chapter 4 Estates Ltd. The Estate is located opposite Nigerian Breweries, Alakia, Ibadan, Oyo State.

Ashiru was surefooted in his presentation. He had assured Osinbajo and others present on the occasion that OICL was bullish about the immediate future of Nigeria’s real estate industry. Read him: “As one of the largest holders of real estate assets in the country, we see first-hand the immense opportunities across the residential, commercial and industrial segments of the sector. We plan to develop new and build on existing partnerships to help meet the growing demand for modern and first-class property and living environments and over the last four years, the Odu’a Investment Group has leveraged partnerships with developers such as Chapter 4 Estates.”

Ashiru’s forward-looking nature has fed perfectly into the potential for greatness hat abounds in the circumference of the ecology of the OICL. He is driving management and staff members to pursue the completion og ongoing projects and reinforce the possibilities that abound in future plans, programmes, and projects. One significant is agriculture and agribusiness. As part of efforts to promote agriculture which is one key priority, South West Agricultural Company (SWAgCO Ltd) was established to unlock unrealized agriculture and sub-optimized agribusiness value by transforming underinvested agribusiness opportunities within Nigeria into institutional-grade investment operations. On Ashiru’s watch, the Board and Management of the Holding Company has begun to ensure the actualization of SWAgCo’s corporate objective.

In the area of Hospitality & Tourism Destination, OICL, propelled by the Ashiru effects, has commenced discussions with international brand managers in developing OICL’s three hotels; Lagos Airport Hotel Ikeja, Premier and Lafia Hotels both in Ibadan into globally-acceptable standards. According to Ashiru, “The Redevelopment and Revamping of Premier Hotel by remodeling, renovating and upgrading the existing Premier Hotel structure from an 87-room hotel to a 150-room modern world class 5-star hotel commenced on January 16, 2023. The redevelopment is being done through a strategic partnership with a hotel developer and management expert having both technical expertise and financial capacity. The new 5-star Hotel which shall retain in its name the word “Premier” will have the following amenities: 150 rooms keys for deluxe rooms, executive rooms and suites, 4 nos. 2-bedroom apartments. Conferencing/meeting rooms of different capacities, 6 outlets for Food & Beverages Services, Leisure & recreation arena for games, gym & spa, and parking for 400 cars-multi-storey car park and surface parking.”

Another key area of productive engagement is the real estate. Apart from the Westlink Iconic Project, the company, on Ashiru’s watch, is undertaking different real estate development including the Westlink Supremacy Court at 81b Oduduwa Crescent, Ikeja GRA in Lagos, which is a Joint Venture Partnership development of OICL and Venison International Limited, an indigenous real estate firm that had completed a series of property developments in Nigeria. For transparency and accountability, the property, with the land size of 3446.5sqm is for construction of eight (8) numbers of 3-bedroom flats; eight (8) numbers of 2-bedroom flats and newly constructed four (4) numbers of terrace houses of 4-bedrooms with 1-maids room. The 20-household on the estate would share facilities/amenities which include Swimming Pool, Gym House, 24-hour CCTV, Water Treatment Plant, 24-hour power supply, green area for kids and gated premises.

There is also the West heritage Court at No 8/10 Ogunlesi, Palmgrove in Lagos, which is a joint venture development of OICL with Glenwood Development Company Ltd. The 1900sqm land is for the construction of two (2) new blocks of six (6) numbers of three (3) bedroom flats totaling 12 housing units. The facilities/amenities to be provided on the modern mini-estate would include Swimming Pool, Road, Parking and Landscape, Water Treatment Plant, Borehole and Water Reticulation, CCTV and fire alarm, Fence and 24-hour power supply.

Another property situated at 87, Oduduwa Crescent, Ikeja, Lagos, owned by OICL had been earmarked for redevelopment to unlock the potential of the property, located in a high-net-worth community with urban facilities and infrastructures. The property dilapidated block would be up-scaled and redeveloped to eight (8) numbers of 3-bedroom flats; eight (8) numbers of 2-bedroom flats and four (4) numbers of terrace houses of 4-bedrooms with 1-maids room with a detached 5-bedroom block. The households on the estate would share facilities/amenities which include swimming pool, gym house, 24-hour CCTV, water treatment plant, 24-hour power supply, green area for kids and gated premises.

There is also the Westlink Clinton’s Court, at Iyaganku in Ibadan, which is a joint venture development by OICL and Clinton’s Properties Limited. The 6,673.44 sqm land is being developed to four (4) blocks of four (4) numbers of terraces houses. Each terrace house would have four bedrooms (all en-suite) with an attached boys’ quarter. The shared facilities/amenities to be provided in the estate includes Swimming Pool, Gym House, 24-hour CCTV, water treatment plant, 24-hour power supply, green area for kids and gated premises. In all, a total number of 16-housing units would be constructed.

Other investment projects which are benefitting from Ashiru’s inspirational leadership are: Energy/Power Project, Oil and Gas, Pharmaceuticals/Healthcare, Logistics and Transportation, and ICT and Financial Services. As an active key player in the competitive trade and business world, opportunities abound in the Odu’a Group to local and foreign investors/technical partners seeking reliable partners in new business opportunities.

According to OICL: “We seek to enter new businesses in these chosen sectors with high potential for growth, profitability and sustainability. The basis of these new entities is strategic partnership with technically proven and financially capable partners.” The OICL is a going concern, which is lucky to enjoy the superintendence of an astute businessman, a shrewd investor, an accomplished banker and a pacesetting marketer. Otunba Bimbola Ashiru, the man in the saddle, was born in Ijebu-Ode to the illustrious Ashiru family. His father, the late Pa Simeon Adeyemi Ashiru, was a distinguished Ijebu statesman while his mother ‘Omo’ba (Princess) Moradeun Ashiru, is from the Fidipote royal family of Ijebu Ode and the ruling house of Owu-Ijebu.

He has academic degree in Marketing, Purchasing & Supply, and a Masters’ degree, to boot, in Strategic Management. With this background, he entered the services of the then Chartered Bank in the year 1989. In a successful career that has spanned two decades and taken him to various institutions, he had served in various management capacities, including Head, Private Banking Unit; Branch Manager; Head, Institution and Professional Banking; Regional Coordinator; Country Director, Personal and Business Banking; Director, Corporate Affairs and Corporate Social Investments; until his last position of Group Head, Public Sector with Stanbic IBTC Bank. He was the pioneer head of the department.

Otunba Ashiru, a man with a Midas touch, is also a man of seemingly limitless eleemosynary acts and charitable works, with an almost tangible desire for developing people around him, and this virtue had translated into his appointment as the representative of the Awujale of Ijebuland on the Ijebu Development Initiative on Poverty Reduction (IDIPR). He has distinguished himself in this field and has, so far, effectively represented his people to the best of his ability.

He is a member of The Metropolitan Club, Ikoyi Club 1938 and a member of the Ijebu Heritage Group and Ijebu Renaissance Group. A Fellow of the Chartered Institute of Bankers [FCIB]; Institute of Strategic Management of Nigeria; National Institute of Marketing of Nigeria [FNIMN] and Chartered Institute of Commerce of Nigeria, Ashiru has made his marks in all his endeavours. In recognition of his selfless service to society and having distinguished himself as a true son of Ijebu land, he was presented with the royal title of Otunba Adeona Fusigboye of Ijebuland in December, 2006 by His Royal Majesty, The Awujale and Paramount Ruler of Ijebu Land, Oba (Dr.) Sikiru Kayode Adetona, CFR, among other numerous accolades and feathers in his cap. His current exertions at OICL remains his most significant effort yet as he chairs the business interests of six southwest states. Without a doubt, he is a perfect fit for the job.1

– Soneye, a public policy expert and publisher of Per Second News, writes from Abuja.

NLC proposes ‘Udoji’ wage award amid negotiations with Tinubu’s government

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The Nigeria Labour Congress (NLC) says it has proposed a wage award to President Bola Tinubu’s government to cushion the effects of petrol subsidy removal on average Nigerians.

NLC president Joe Ajaero disclosed this on Wednesday at the ongoing 111th Session of the International Labour Conference (ILC) in Geneva, Switzerland.

Mr Ajaero said the proposal was part of the agreement reached with the Tinubu government during the negotiation on the removal of fuel subsidy, stressing that the agreement “we had with them is not minimum wage” but “wage award and it must be understood clearly.”

“We have proposed to them a wage award, which could be implemented immediately without waiting for the statutory period for the minimum wage law or for it to expire,” explained Mr Ajaero. “What we are going to do is to look at the rate at which this wage award will be, whether it will be N100,000 or N20,000.”

He stated that this would not stop the minimum wage review, which will be due “by early next year,” reiterating that it “is good we draw this demarcation.”

Mr Ajaero added, “We will ensure to review minimum wage statutorily because they have taken action by removing subsidy without providing anything. That is why they are talking about minimum wage.”

He pointed out that early this year, the federal government gave workers a form of wage award of about 40 per cent to cushion the effects of COVID-19.

“Now that we are having the effect of this subsidy removal, we will look at an award that will cushion it. In this country, even in the 1970s, we had the Udoji award and others,” the labour union leader in Nigeria added. “So, that is the purpose, whatever we are going to come up with at our next meeting with the government, but not minimum wage.”

He disclosed that some state governors had yet to abide by the National Minimum Wage Act to pay N30,000 as the least salary.

Meanwhile, NLC wants the subsidy regime investigated. Mr Ajaero complained about its opacity.

“We did not even want to go into the politics of subsidy because we knew that as far as NLC is concerned, we do not know the people that are receiving the subsidy. We do not know people importing and exporting. So, it is exclusive to them,” the NLC chief stated.

He added, “But we have asked them to investigate the subsidy regime because it is not enough to say subsidy is gone and we cover it up. Let us know those involved. Let us know what they did or what they are doing.”

Mr Ajaero said the meeting also discussed the issue of modular refineries, just like in some states, which brought down diesel prices.

“There are areas in Akwa Ibom today where diesel sells for about N300 or N400 from the modular refinery. While we buy diesel in Lagos and Abuja for N800, they buy between N300 and N400. So, if you have all these modular refineries, it will bring down the cost,” the labour leader said.

He stated that NLC “have all insisted that the Warri and the Port Harcourt refineries that they have awarded contracts must be concluded as soon as possible.”

Nigeria’s inflation hits 22.41% amid increase in food prices

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Nigeria’s annual inflation rate has risen to 22.41 per cent amid increase in food prices, according to the National Bureau of Statistics (NBS).

In its report revealed on Thursday, the NBS explained that the inflation rate had risen from 22.22 per cent in April to 22.41 per cent in May.

The Bureau noted that within a year, the rate had accrued a difference of 4.70 per cent from May 2022, where the inflation was 17.71 per cent, until May 2023.

Items like food and non-alcoholic beverages (11.61 per cent), housing, water, electricity, gas and other fuel (3.75 per cent), clothing & footwear (1.71 per cent), transport (1.46 per cent), among others contributed largely on the divisional level to the increase in the headline.

Also, the report on the food inflation rate showed that food inflation rate quickened from 24.61 per cent in April, to 24.82 per cent in May and on a year-on-year basis, was 5.33 per cent points higher compared to the rate recorded in May 2022 (19.50 per cent).

The bureau explained that the increase in prices of food on a year-on-year basis was as a result of increase in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruits, meat, vegetables, and spirits.

However, the report added that the core inflation, which excludes the prices of volatile agricultural produce stood at 20.06 per cent in May 2023 on a year-on-year basis; up by 5.16 per cent when compared to the 14.90 per cent recorded in May 2022.

Further stating that the highest increase were recorded in prices of gas, passenger transport by air, liquid fuel, vehicle spare parts, fuels and lubricants for personal transport equipment, medical services, passenger transport by road etc.

Exchange Rate: Naira traded N791 to dollar, drops to N664 at I&E window

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Naira on Wednesday depreciated against the dollar at the investors and exporters window, exchanging N664.04 to $1.

The naira dropped by 40.78 per cent compared with N471.67 it exchanged for $1 on Tuesday.

The depreciation followed the Central Bank of Nigeria (CBN) directive to banks to remove the rate cap on the naira at the Investors and Exporters’ Window.

The directive would allow a free float of the nation’s currency against the dollar and other global currencies.

The open indicative rate stood at N473.83 to the dollar on Wednesday.

An exchange rate of N791 to $1 was the highest rate recorded within the day’s trading before it settled at N664.04.

The naira sold for as low as 461 to $1 within the day’s trading.

On Wednesday, a total of $193.33 million was traded at the official Investors and Exporters window.

Meanwhile, Ndubisi Nwokoma, a director at the Centre for Economic Policy Analysis and Research, University of Lagos, said the CBN directive for a free naira float was a good development.

“The CBN decision is a good development, hoping that unnecessary arbitrage (round-tripping) would be eliminated from the market. We expect that the foreign exchange rate will trend downwards when foreign capital inflow increases, following these,” Mr Nwokoma noted.

The economic expert explained that the negative side “is that many assets or foreign sectors related to naira prices, like external debt, among others, will be adjusted upwards” with minimal effects on inflation.

“Inflationary effects may not be much, given that many economic agents had been sourcing for their foreign exchange at the parallel market before now,” Mr Nwokoma stated.