Finance
EFCC has no power to investigate or recover civil contract debts, court rules
BY: Justice Godfry
A Federal High Court, Ibadan, has ruled the Economic and Financial Crimes Commission (EFCC) has no power to arrest anyone or investigate cases of debt recovery arising from breach of contract.
Justice J. O. Abdulmalik in an April 1, 2019 damning judgment, a copy of which was obtained by The Nation, declared that the EFCC Act 2004 does not empower the commission to arrest, detain anyone or investigate cases of breach of contract in business transactions.
It held that the commission only has power to arrest, detain or investigate financial crimes, not civil transactions.
He gave the judgment in a case dragged before him by an Ibadan-based business man, Elder Francis Morakinyo Afolabi, through his lawyer, Mr. Joshua Olaniyan, against the commission and five others. Afolabi dragged the EFCC to court for his arrest, torture and freezing of his bank account based on a petition submitted on him by Mr Kehinde Olaniyan who trades under the name Kehinde R. Olaniyan Nigeria Enterprises over failure to fulfill his part of a business transaction worth N14 million with the latter in 2015.
The petition was submitted to the Ibadan zonal office of the commission, upon which it invited Afolabi.
Other respondents are three investigating officers of the commission and First Bank of Nigeria PLC in whose Afolabi’s Account was frozen.
The complainant was admitted to bail while his bank account was frozen pending the completion of its ‘investigations’.
But Afolabi dragged the commission and other respondents to court seeking a declaration of his arrest and freezing of account illegal as well as publication of a public apology in two national dailies that are popular in Ibadan.
He also sought N100 million damages against the six respondents in the case.
Citing the case of Lima versus Mohammed (1999) LPELR-1973 (Supreme Court), the judge declared that “an aggrieved party in a breach of contract is to seek for civil redress by way of insisting on actual performance of the contract or seek damages for the breach.” Justice Abdulmalik pointed out that it has become fashionable for some Nigerians to use law enforcement agents to retrieve debts arising from civil transactions instead of approaching the court to do so, possibly in an attempt to dodge lawyers’ professional fees.
The judge also held that Afolabi’s fundamental human rights were breached through his arrest and freezing of his bank account. He, therefore, awarded N500, 000 damages to the applicant but absolved the bank, stressing it was under obligation to honour the request from the EFCC for the account freezing being a commission empowered to do such.
The judge set aside the directive freezing Afolabi’s bank account.
For justice to be done, the court also held that Mr Olaniyan, who dragged Afolabi to the EFCC, should publish a public apology in a national daily whose circulation is popular in Ibadan.
Among the seven issues formulated, six were resolved in favour of Afolabi.
The court held that the commission has no power to investigate or resolve disputes arising from civil contracts, is not a debt recovery agency, declared freezing of Afolabi’s bank account illegal, declared his arrest as a breach of his fundamental human rights and a form of torture.
He declared: “On issues one, two, three and four of the applicants, there is no gainsaid that the 1st respondent (EFCC) does not have the power to resolve or and investigate disputes arising from contracts or civil transaction.
“Also, as reiterated in a plethora of judicial authorities, the 1st respondent is not a debt recovery agent.”
The judge referred to, among others, Section 6B of the EFCC Act 2004 Laws of Federation of Nigeria which states that the commission shall be responsible for the investigation of all financial crimes including advance fee fraud, money laundering, counterfeiting, illegal charge transfers, future market fraud, fraudulent encashment or negotiable instruments, computer credit card fraud, contract scam etc.
He insisted the transaction between Afolabi and Olaniyan was civil, pointing out failure to honour terms of contract does not amount to a crime.
He said it is strictly a civil transaction that is outside the powers of the commission irrespective of the garb the commission put on the matter.
“Carefully from the above facts, I do find that irrespective of the descriptive inventory lexicon employed by the 5th respondent Mr Kehinde Olaniyan) to title his petition or report to the 1st respondent, it does not dissipate the facts on the ground from being that of a civil transaction of contract which has gone wrong.
“To cushion my point, the 5th respondent’s report to the 1st respondent can be tantamount to a cry of ‘help me collect my money from the applicant’.
“Otherwise, the question will be ‘what does the 5th respondent really want the 1st to 4th respondents to investigate?’ There is no mystery about the fact, the 5th respondent supplied applicants goods worth N14,611,820:00 which has not been paid for…
“The ‘investigation power’ vested on the 1st respondent is in relation o the commission of a crime, and not a civil transaction, as simple as recovery of debt. The requisite sections of the E inimical and Financial Crimes Commission (Est) Act Laws of Federation of Nigeria 2004 as aforementioned all referred to instance and occasion of suspicion crime.”
Source: The Nation
Finance
Flutterwave Powers Local Businesses in Ghana Through Pay With Bank Transfer
Reporter: Ikenna Ugwu
Flutterwave, a leading payments technology company in Africa, has broadened its reach in Ghana through the integration of Pay With Bank Transfer, done in partnership with Affinity Bank.
With over 115 million bank transfer payments recorded in Ghana in 2023, this move will ensure that Flutterwave businesses in Ghana can now receive payments seamlessly and securely through a rapidly growing payment method. While Mobile Money leads as the preferred payment type for everyday transactions in Ghana, the recent growth in transactions for Pay With Bank Transfer symbolizes the expanding payment options available for Ghanaian businesses.
Flutterwave has a track record of driving innovation in the African finance ecosystem, and this new development promises versatility, thereby expanding the pool of customers available to businesses. As a preferred payment method, it also promises faster payments while providing access to a more secure process of transacting which benefits both the sender and the receiver (business).
“We are excited to extend our services to the Ghanaian market” says Olugbenga Agboola, Flutterwave Founder & CEO“At Flutterwave, we are driven by the vision of building Africa’s economy. By making payment options like Pay With Bank Transfer available for everyday use, we are expanding access to payments and enabling local businesses to thrive in the economy”
By establishing this strategic partnership, Flutterwave aims to drive the adoption of the Pay With Bank Transfer option in Ghana, using virtual accounts to allow for secure and transparent payments. This will provide enterprises and small businesses with a simpler way to receive payments and give their customers a seamless process of making payments.
Geoffrey Fiador, Manager, Country Operations and Partnerships, at Flutterwave stated: “By delivering essential payment options like Pay With Bank Transfer for businesses in Ghana, we’re providing an easy way for them to increase their revenue opportunities to grow their businesses. ”
This announcement comes at the heels of Flutterwave’s recent approval by the Bank of Ghana to provide inward remittance services. With a track record of success across Africa, Flutterwave continues to be a trusted partner for businesses in over 34 countries, providing the tools and expertise necessary for success in the dynamic African market.
Finance
Stanbic IBTC Capital leads Presco PLC’s ₦82.9 Billion Bond Issuance to drive West African market growth
Reporter: SANDRA ANI
Presco PLC (Presco or the “Company”), has achieved a significant milestone with the successful issuance of its ₦82,896,000,000 7-year 23.75% senior unsecured fixed rate Series I Bonds under its ₦150 billion bond issuance programme (the “Transaction”) with the Securities and Exchange Commission (“SEC”). Stanbic IBTC Capital Limited (“Stanbic IBTC Capital”) acted as the Lead Issuing House on the Programme.
The proceeds from the Transaction will enable the Company fund its acquisition of a 100% equity stake in Ghana Oil Palm Development Company (GOPDC), further supporting its strategic expansion objectives.
Speaking on the transaction registration, Mr Reji George, Managing Director / CEO, Presco PLC commented:
“The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. Aligned with our strategic objectives of increasing our planted area of palm oil and, to lead Africa in the fully integrated edible oil and fats business in the nearest future, the proceeds from this issuance will be primarily directed towards the acquisition of a majority equity stake in the Ghana Oil Palm Development Company (GOPDC).
This not only enhances our operational efficiencies, It also solidifies our market presence and competitive advantage in the palm oil sector beyond Nigeria. Most importantly, this will enable us to better serve our valued customers and deliver sustainable value to our shareholders. We extend our sincere gratitude to Stanbic IBTC Capital and all our advisors for their support throughout this process.”
Also speaking on the transaction registration, Oladele Sotubo, Chief Executive, Stanbic IBTC Capital, said:
“Stanbic IBTC Capital is proud to have advised Presco PLC on the successful issuance of its ₦82.9 billion Series 1 bond. As the largest local currency corporate bond issuance in the Nigerian market in recent years, this milestone underscores our deep expertise in capital markets and our commitment to delivering innovative, high-impact financial solutions.
Beyond reinforcing Presco’s strategic growth, this transaction enhances funding diversification within the agricultural sector, driving sustainable industry expansion. We appreciate Presco PLC’s trust in Stanbic IBTC Capital and the consortium of advisors who contributed to the successful execution of this landmark deal.
Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
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