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NDIC Drags Businessman To Court Over N40m Debt

Federal High Court in Lagos

Nigeria Deposit Insurance Corporation (NDIC), the liquidator of Metropolitan Bank Limited, has renewed its legal battle against Lagos-based businessman Iwajuokwu Samuel and his company, Corporate Oil and Gas Limited, over alleged unpaid debt of N40,536,457,89.

Joined as co-defendant is a Director of Corporate Oil and Gas Limited Iwuajokwu Uche.

In an amended statement of proof of claim sworn to by an assistant manager of NDIC, Mr Oguntoyinbo Oluborode, and filed before a Federal High Court in Lagos by Lagos lawyer, Barrister Okey Uzoho, it was alleged that Corporate Oil and Gas Limited, its Managing Director Iwuajokwu Samuel, and a Director of the company, Iwuajokwu Uche, all of Block D, Flat 1, Eko Court Kofo Abayomi Street Victoria Island, Lagos southwest Nigeria secured N800m credit facility from Metropolitan Bank Limited (now in liquidation).

Theloan which was obtained in July 20, 2004 was for the purpose of enhancing the working capital requirement of Corporate Oil and Gas Company and import finance for the importation of 10,000 high tensile deformed reinforcing bars.

The credit facility was granted, while the credit facilities were secured by the personal guarantee of Samuel Iwuajokwu backed by his statement of his net worth, power of attorney and warehousing agreement, corporate guarantee of Unigate Investment Limited and legal mortgage over property situated at Mobolaji Johnson road, Oregun Industrial Estate, Alausa, Ikeja belonging to Unigate Investment.

As at April 2010, the outstanding indebtedness of the respondents stood at N40,536,457.89.

Consequently, NDIC urged the court to issue order of specific performance directing the respondents to pay the sum of N40,536,547.89, plus interest at the rate of 22.5%

The cost of the suit was assessed at N5.3million.

The presiding judge, Olawale Faji has adjourned the case for hearing.

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