Innoson Motors threatens to seal up GT Bank’s head office over an alleged ₦8.8bn Debt

04/02/2019

Posted by: Oluwaseun Solomon

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GT Bank customers are currently confused as Innoson Motors threatens to seal up the bank's head office over an alleged ₦8.8bn Debt. The original debt is only ₦2.4 billion but the court has ordered the bank to pay 22% interest rate per annum which adds up over 6 billion more. More details below!

Guaranty Trust Bank (GT Bank) is currently the fastest growing banking enterprise in Nigeria with leading-edge technology and advancement in banking facilities available to all of its customers.

Is it possible to find a neighbourhood or any organizational setting in Nigeria including Naijauto.com without at least one GT Bank’s customer in it? We don’t think so.

Over the years the bank has been able to garner a huge number of customers for itself all of whom are thrown into confusion a few days ago as the most popular automobile manufacturing company in Nigeria – Innoson Motors threatens to seal up the bank’s head office over an alleged ₦8.8 billion Debt.

GT-bank-office

Innoson Motors’ agents have already sealed up 7 GTB offices in Enugu and Awka and aim for its Lagos Headquarters

On Saturday 30th of March 2019, Cornell Osigwe – Innoson Motors’ spokesman said in an interview that this week, the company will move on to GT Bank’s headquarters in Lagos to seal it up in effect of the court’s judgement in their favour over this debt case.

Things even got scarier as agents of Innoson Motors had already sealed up seven branches of GT Bank in Enugu and Awka which is a clear indication that their threats for the headquarters aren’t empty ones or a bluff.

How could a whole bank like GTB be owing to a Nigerian motor company such a gigantic amount of money?

Osigwe’s words in the above-mentioned interview were;

“From next week, we shall move to GTB head office to enforce the judgement of courts. We will sell those properties to get our money back.”

GTB Plc, however, claims that the court judgement which Innoson Motors has been acting upon is not against it but a customer of the bank itself which is “Nigeria Customs and Excise Board”. Eric Obebeduo, GT bank’s secretary said in a press statement that the “garnishee order” in question has risen from a judgement declared by a Nigerian Federal High Court in Ibadan, Oyo State.

Innoson-Motors’-CEO-Innocent-Ifediaso-Chukwuma

With all the current feud, Innoson Motors’ CEO - Innocent Ifediaso Chukwuma is yet to give a public statement

However, Obebeduo said;

“It is important to state that the Judgement allegedly in issue is in respect of Garnishee Proceedings against the account of the Nigerian Customs Services Board domiciled with the Bank and not against the Bank as an entity.

The Bank as a law-abiding corporate citizen is taking all necessary legal steps to address this situation and ensure that no illegal or fraudulent execution is carried out.”

Nonetheless, Innoson Motors Nigeria claims that its actions of sealing up about seven offices of GT Bank in Enugu and Awka is actually followed after the Supreme Court’s judgement in its favor by affirming that earlier ruling of the Appeal Court and High court in Ibadan.

Innoson Motors’ spokesman, Cornell Osigwe, in a press statement on Friday said;

“The Chairman of Innoson Group, Chief Dr. Innocent Chukwuma, OFR hast through a Writ of Fi Fa taken over Guaranty Trust Bank PLC for and on behalf of Innoson Nigeria Ltd as a result of the bank’s indebtedness to Innoson Nigeria Ltd,

“In a landmark decision on February 27th 2019, the Supreme Court of Nigeria had dismissed GTB’s appeal in a suit number SC.694/2014 — against the judgment of court of Appeal, Ibadan Division.

“The Court of Appeal, Ibadan division had in its decision of 6th February 2014 dismissed GTB’s appeal against the Federal High Court, Ibadan Division.

“Thus, the Court of Appeal affirmed the judgment of the Federal High Court, Ibadan Division which ordered GTB by way of Garnishee order absolute to pay N2.4billion to Innoson with a 22 percent interest per annum, on the judgments until the final liquidation of the debt.

Rather than obey the judgment of the Court of Appeal, GTB approached the Supreme Court to challenge the Court of Appeal’s decision”

“The Judgment debt of N2.4bn has accrued an interest of about N6,717,909,849.96 today, which results to about N8.8 billion,”

“Based on the Supreme Court’s decision of 27th February 2019 the counsel to Innoson , Prof McCarthy Mbadugha ESQ, approached the Federal High Court Awka Division for leave to enforce the judgment having obtained certificates of Judgment from the Ibadan Division of the Federal High court,”

Just like everyone else, we are not yet sure of the facts in this case so far but we do hope the two industries find an even ground soon to avoid a major disaster on Nigeria’s economy.

We though assure that, as soon as more reliable information surfaces, we will be the first to let you guys know.

>>> To see more up-to-date news and reports like this, navigate to our car news, auto-launch, and automotive industry updates.

Oluwaseun Solomon
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Oluwaseun Solomon

Oluwaseun Solomon

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Oluwaseun Solomon is a prolific and diligent automobile writer at Naijauto.com. He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

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