No Loan Was Given to Me by FCMB, Algrain Foods Managing Director Tells Court

Victoria Ojiako 

The Chairman/Chief Executive Officer of Algrain Foods Limited,Chief Anthony Obidulu, has maintained his stand before a Lagos High Court sitting in Osborne that First City Monument Bank (FCMB) never advanced any loan to him.  

He said rather, the money in question was the one hundred million naira (N100million) Small and Medium Enterprises Credit Guarantee Scheme facility granted his company by the Federal Government in which FCMB acted as agent as required by the guidelines issued by CBN. 

He also told the court presided over by Honourable Justice  (Dr.)R.O Olukolu recently while being led in evidence by his counsel,  Chief Aloy C. Ezenduka ,that the money in contention was not just dropped into his accounts, but was paid upon request. 

Algrain Foods Limited and its Chief Executive Officer, Anthony Obidulu, had sued the Bank and the Receiver, Mr. Emmanuel  Adeyeye, Oyebanji, SAN before the Court, claiming among others that the Receiver committed acts of trespass to Chief Obidulu’s property which is not part of the All Assets Debenture (Plant & Machinery) pledged to the bank to secure the facility as provided in the CBN guidelines and that the Court should appoint independent auditors, and grant the sum of N20 billion against the Bank.

The defendants are First City Monument Bank Plc and Mr. Emmanuel Adeyeye Oyebanji as 1st and 2nd defendants, respectively.

He further told the court that he has been denied access to his personal premises since the dispute occurred.

According to Obidulu “there is a difference between his personal property and the property of the company, saying that it is only the plant and machinery that belongs to the company. 

He contended that “the structures and the premises belong to me and I have the Certificate  of Occupation (C of O) which is in my name  but it is in the custody of the bank.”

He maintained that if they need the document, they can always ask from the bank. 

He also said that the money he collected was guaranteed by CBN 80%. with 7 years tenure from draw down.

He was however cross-examined by the defence counsel, Mr Taiwo Osipitan , SAN.

The Claimant is also seeking the following claims: “The annual rent of N29million  (Twenty Nine Million Naira) for the 1200 square meters on the premises leased to Mathan Nigeria Limited and six years rent  totalling N174 million.

“The annual rent of two warehouses measuring 60 x 20 in length and width respectively at a joint current going rate for N60 million per annum for six

years which gives a total N360million.

“The annual rent of three warehouses measuring 40 x 15 in length and width respectively at an annual leasehold rent for N15million  for each of them is N45,000,000.00 for six years totalling N270million.

“The annual rent of six Nos. 3 bedroom flats for living quarters at

N1.5million per annum for each flat for six years totalling N54million.

The annual rent for two Nos. 4 bedroom flats for living quarters at

N2million per flat for six years  totalling N24million, among other claims.

Recall that in a press conference in March 2024, the Algrain boss had appealed to President Ahmed Tinubu and other authorities to intervene in the matter so as to return assets of the company illegally sold by the FCMB and its receiver manager.

Further hearing on the matter was adjourned to 26th November, 2024.