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The Business News

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UBA Seeks Jail Terms for Nine in ₦61.45 Billion WEMPCO Debt Dispute

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United Bank for Africa (UBA) has asked Nigeria’s Federal High Court to imprison nine individuals associated with Western Metal Products Company (WEMPCO) for allegedly violating a court order in a ₦61.45 billion ($42 million) debt recovery dispute.

The bank alleges that the individuals forcibly removed a court-appointed receiver-manager from WEMPCO’s steel plant in Ogun State and obstructed efforts to take control of assets covered by the order.

In an application reported by The Nation on October 27, UBA accused the respondents of deliberately disobeying a court directive issued on April 2. It asked the court to imprison them until they comply with the order.

The respondents are Lewis Shui Noor Tung, Phillip Shui Che Tung, Alhaji M.A. Ola Yusuf, Tung Lawrence Blake, Alli Aare Hadji Tokunbo, Paul Shui Po Tung, Robert Tung, CL Ip and Taiwo Alli.

The allegations have not been established in court. WEMPCO’s response to the latest application was not immediately available.

The dispute is part of UBA’s efforts to recover ₦61.45 billion that it says WEMPCO and associated companies owe the bank.

In its April 2 ruling, the Federal High Court ordered the freezing of funds belonging to WEMPCO and other defendants across 27 banks and financial technology platforms. It also appointed Romeo Ese Michael as receiver-manager over assets not already pledged under a 2019 credit agreement.

According to an affidavit filed by UBA, court bailiffs initially handed over the Magboro-Ibafo steel plant to the receiver-manager.

The bank alleged that the respondents subsequently brought men to the facility who broke the receiver’s locks and threatened his staff with serious injury.

UBA further alleged that the respondents continued operating the plant and diverting funds despite the court order, preventing the receiver-manager from exercising effective control over the business.

The April 2 order also directed banks and financial technology platforms, including Moniepoint, OPay and Kuda, to disclose and preserve balances belonging to the defendants. The receiver-manager’s mandate also covers two Wärtsilä power generators, wherever they may be located.

The proceedings include several other companies, among them Lagos Oriental Hotel Limited, United Rolling Mills Limited, WEMPCO Steel Mill Company and Prime Nigeria Tiles Company.

Court documents indicate that the parties attempted to negotiate a settlement before UBA filed its latest application.

On June 22, WEMPCO’s lawyers reportedly proposed a temporary standstill, a joint reconciliation of accounts and a structured repayment plan.

UBA’s lawyer agreed to meet the company’s representatives but questioned the proposed negotiations in light of the alleged incident at the steel plant.

The parties met at UBA’s headquarters in Lagos on June 26 and agreed to inspect the facility jointly on July 2.

UBA alleged that WEMPCO and its lawyers failed to attend the inspection and subsequently became unreachable. The bank maintained that the facility remained under the respondents’ control.

The latest application seeks to enforce the existing court order. The court’s decision will depend on its assessment of the alleged violations and whether the legal requirements for imprisonment for contempt have been met.

Lagos Court Sentences Former Banker to Five Years for ₦2.7 Billion Fraud

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A Lagos court has sentenced former banker Christopher Jackson Edeh to five years in prison for his role in a ₦2.7 billion ($1.8 million) fraud involving the unauthorised alteration of bank account details belonging to customers and public institutions.

Justice O.O. Abike-Fadipe of the Special Offences Court in Ikeja convicted Edeh on nine counts of fraudulent false accounting and unauthorised access to a computer system, according to a statement issued by the Economic and Financial Crimes Commission (EFCC) on Tuesday.

The court sentenced him to five years in prison without the option of a fine on each of the first seven counts, which involved fraudulent false accounting. It imposed two-year prison terms without the option of a fine on each of the remaining two counts, relating to unauthorised access to a computer system to facilitate criminal activity.

The judge ordered that all sentences run concurrently, meaning Edeh will serve five years rather than the cumulative 39 years imposed across the nine counts.

Edeh was arraigned on February 28, 2024, over allegations that he altered account details belonging to several customers and government-related entities to facilitate fraudulent transactions.

The affected accounts included those of the Kano State Government Power Intervention Fund, NNPC Trading Limited, Stallion Vision Ltd., the Lagos State Government’s Blue Line rail project, the State Contributory Pension Account and Chukwuemeka Odumegwu Ojukwu University.

Earlier reports on the case linked Edeh to alleged unauthorised access to Fidelity Bank’s Entrust portal. Dangote Cement Plc was also identified among the entities affected by the transactions.

During the trial, prosecution lawyer Z.B. Atiku called three witnesses and presented documentary evidence. The defence called one witness.

In her judgment, Abike-Fadipe ruled that the prosecution had proved its case beyond reasonable doubt before convicting Edeh on all nine counts.

BUA Chairman Credits FX Reforms With Ending Dollar Lobbying

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Abdul Samad Rabiu, chairman of BUA Cement, says reforms to Nigeria’s foreign exchange market have reduced the need for businesses to lobby the central bank for access to dollars, improving transparency in the allocation of foreign currency.

Rabiu spoke in Abuja during a media briefing following the company’s ninth annual general meeting, according to Economic Confidential.

He contrasted the current system with the previous framework, under which the official exchange rate often differed sharply from the parallel-market rate, while businesses struggled to obtain foreign currency through official channels.

“I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said, referring to the difficulties businesses faced under the former system.

He said the official exchange rate had stood at about 500 to 600 naira per dollar, while the parallel-market rate was closer to 1,000 naira, creating distortions and unequal access to foreign currency.

Under the current framework, businesses can obtain foreign exchange through commercial banks at market-determined rates, Rabiu said, adding that the changes had created a more level playing field.

He forecast further appreciation of the naira, predicting that it could strengthen to around 1,200 naira per dollar in the coming months. The projection was his personal assessment, not an official forecast by the Central Bank of Nigeria.

Rabiu also said the naira’s performance was helping to ease prices of some commodities, including cement and food. However, exchange-rate movements are only one factor affecting consumer prices, which also depend on production, energy, transport and distribution costs.

Addressing cement prices, he said foreign-exchange volatility, energy expenses and imported equipment had contributed to higher production costs. He added that BUA Cement had sought to limit the impact of those pressures on customers.

The company reported revenue of 877 billion naira in 2024, up from 460 billion naira in 2023, despite foreign-exchange losses of 93.9 billion naira, according to figures cited in the report.

Profit before tax rose 48.2% to 99.63 billion naira, while earnings per share increased to 2.18 naira from 2.05 naira in the previous year.

Rabiu said BUA Cement recorded a profit after tax of 81 billion naira in the first quarter of 2025, exceeding its earnings for the whole of 2024. He projected that full-year profit could reach 250 billion naira, citing improved operational efficiency, lower foreign-exchange losses and increased production capacity.

The company had no immediate plans to expand beyond its installed annual production capacity of 20 million metric tonnes, Rabiu said, following the commissioning of additional production lines in Sokoto and Edo states.

He also reaffirmed the company’s commitment to shareholder returns, citing a proposed dividend of 2.05 naira per share.

Yusuf Binji, managing director and chief executive of BUA Cement, said the company was working to manage energy costs through the development of a liquefied natural gas regasification plant with a capacity of 700 tonnes per day.

Binji also said the company had renegotiated service contracts to increase local participation and reduce its exposure to foreign-currency costs.

Nigeria’s foreign-exchange reforms have sought to improve market liquidity and transparency by reducing distortions associated with multiple exchange rates. Their wider economic effects, including the impact on inflation, business costs and household purchasing power, remain important measures of their effectiveness.

TCN Chief Re-elected Chairman of West African Power Pool

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The managing director of the Transmission Company of Nigeria, Sule Abdulaziz, has been re-elected chairman of the executive board of the West African Power Pool for another three-year term.

Abdulaziz was re-elected at the board’s 68th meeting, held on October 8 and 9 in Lomé, Togo, according to a statement issued by TCN management in Abuja.

In his acceptance speech, Abdulaziz thanked board members for their confidence and pledged to continue working with them to advance regional electricity cooperation.

He urged member utilities to strengthen compliance with the organisation’s rules and financial obligations, saying effective governance and reliable funding were essential to the development of a regional electricity market.

Abdulaziz said the board’s decisions must be implemented within a sound legal, institutional and financial framework that safeguards the interests of the organisation and its members.

He stressed that contributions from member utilities were essential to maintaining the organisation’s independence and operational capacity. He also urged the secretariat to pursue cost-saving measures without compromising its core functions.

The chairman identified synchronisation of electricity networks and the launch of the regional electricity market as key priorities. He said successful integration would require coordinated system operations, appropriate security arrangements and the readiness of participating utilities and other stakeholders.

He added that the regional market would depend on clear operating rules, reliable data, sound financial arrangements and independent governance.

WAPP Secretary-General Abdoulaye Dia said the organisation had continued to implement measures to strengthen its institutions and advance plans for an Independent System and Market Operator.

The proposed operator is intended to support the development of the regional electricity market, while the WAPP Information and Coordination Centre maintains operational continuity during the transition.

Dia said the organisation had attracted new partnerships as its work progressed. He reaffirmed the secretariat’s commitment to building an integrated, reliable and competitive regional electricity system ahead of the planned launch of the market’s second phase in early 2027.

He also urged member utilities to settle outstanding contributions, saying predictable funding and sound financial management were essential to the organisation’s credibility and performance.

The board reviewed a study on the proposed system operator and adopted a charter for the Forum for Women in Energy in West Africa, alongside a memorandum of understanding with the Millennium Challenge Account Côte d’Ivoire.

It also considered membership applications from four utilities in the region, including Nigeria’s Konexa, Senegal’s SOGESART and SOGEOH, and Niger’s HOLDEN. The applications are expected to be submitted for ratification by the WAPP General Assembly before the end of 2026.

Environmentalists Call for Probe Into Tremors in Bayelsa, Rivers

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Environmentalists have called for an investigation into renewed earth tremors reported in communities across Bayelsa and Rivers states in southern Nigeria, saying the cause of the ground vibrations remains unknown.

Environmental Conservation Agriculture and Rural Development (ECARD) made the call after its field team visited affected communities to document residents’ experiences following the vibrations reported on October 8.

The team, led by Alagoa Morris and Emmanuel Ezue, visited Kalaba, Ikarama, Mbiama and Iluma on October 10. Residents said the tremors shook buildings, displaced household items and caused panic, forcing some people to flee their homes and businesses.

In Mbiama, vulcaniser Chimezie Madu said residents rushed towards the East-West Road because they feared a heavy structure had collapsed.

Fruit seller Benita Douglas said the vibrations damaged another trader’s table, scattering goods and causing her to fall to the ground.

In Iluma, trader Innocent Ezebuwo said people abandoned their shops to investigate the shaking. He called on government authorities to determine its cause, adding that his community had experienced similar incidents several times about four years earlier.

Another resident, Caroline Theophilus, said she fled her home in fear when the ground began to vibrate.

In Kalaba, 51-year-old Freeborn Roland said the shaking occurred between 1 p.m. and 2 p.m., affecting his house and roofing sheets. He initially suspected strong winds.

Residents of Ikarama also reported intense vibrations affecting the ground and buildings. Christian Johnson, 48, said he initially feared an earthquake.

The traditional ruler of Freetown, Gbaka Moses, said the incident caused widespread concern and that cracks had reportedly appeared in some buildings. He called for a thorough investigation.

ECARD said records showed that similar tremors had been reported in the affected areas in June 2014 and July 2016. The earlier incidents reportedly affected several communities across Bayelsa and Rivers states.

The organisation said previous tremors had raised suspicions of possible links to seismic activity associated with oil industry operations, particularly during the 2016 incidents.

However, ECARD said its latest observations had not identified nearby seismic activity that could explain the renewed vibrations. It cautioned against attributing the incidents to oil exploration or production without scientific evidence.

The organisation urged state and federal authorities, scientific institutions and relevant professional bodies to investigate the incidents and provide reliable information to affected communities.

It said an investigation should establish the cause of the vibrations, determine whether they pose a risk to residents and identify any measures needed to protect lives and property.

ECARD also called for greater government attention to environmental monitoring and scientific research, warning that recurring incidents should not be overlooked simply because their causes remain uncertain.