Offa monarch to forfeit multimillion naira properties over N12bn debt

The Olofa of Offa in Kwara state, Oba Gbadamosi Muftau risked forfeiting his multi-million naira properties to the Asset Management Company of Nigeria (AMCON) following his inability to repay a debt of over N12 billion.

It was gathered that Monarch owed the sum of N12, 410,560,226.18, a loan facility obtained from the defunct Oceanic Bank, and one of his choice properties – Zarm Stores Limited – will also be seized by the corporation.

AMCON had dragged the Olofa of Offa and his two companies, Zarm Poultry and Feed Mills Limited and Zarm Stores Limited to a federal high court in Lagos in January 2018, in a bid to recover this debt.

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In a statement of claim filed before the court by a Lagos lawyer, OsayabaOsagie, it was alleged that pursuant to its enabling act, AMCON sometime in 2012 purchased certain Eligible Bank Assets of the former Oceanic bank in the sum of N1,859,654,737.00 and N4,586,369,001.47 respectively.

As of April 8, 2017, Zarm Poultry and Feeds Mills was indebted to AMCON to the tune of N3,027,486,610.59 being the unpaid principal and interest on a term loan facility of N2.3 billion that was given to the company sometime in 2006 by the former Oceanic Bank to finance Capital expenditure on its farm at Odonla, Ikorodu, Lagos, PM News reports.

The term loan was secured by the execution of a deed debenture over fixed and floating assets of the company which included the execution of a deed legal mortgage over Plots 407 and 408, Odonla Industrial Estate, Opposite LSDPC Housing Estate Odonla, Ikorodu Lagos.

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It was also reported that as of April 8, 2017, Zarm Store Limited was also alleged to be indebted to AMCON to the tune of N8,253,512,349.19 being the unpaid principal and interests on a restructured term loan facility of N3,055,764,554.71 granted to Zarm Stores Limited sometime in 2009.

The loan was subsequently further restructured to N4,462,589,667.33 to accommodate the debts arising from unpaid facilities granted Zarm Stores Limited’s other affiliates besides the one of Zarm Poultry and Feeds Mills Limited.

The further restructured term loan was secured by a legal mortgage over a piece of land measuring 818.058 square meters being Block 1B Osborne Phase 1, Lagos and the personal guaranteed of Oba Mufutau Gbadamosi who is the Chief Executive Officer and also the majority subscriber to the shares of the two companies.

It will be recalled that in 2019, the Vice President, Prof. Yemi Osinbajo worried that debtors owed the Nigerian government monies to the tune of N5 trillion. This prompted him to direct AMCON to ensure that everything within their power is done to recover these debts.

In response to this, AMCON released a list of the top 105 debtors in the country, of which popular Anambra Senator, Ifeanyi Ubah topped. Other names on the list were late Sen. Buruji Kashamu and Mr. Baba-Ahmed.