Nigerian businessman Victor Osibodu gets dragged to court over alleged $19-million debt owed to Ecobank

Victor Osibodu, a Nigerian businessman and the founder of Vigeo Holdings Limited, has been sued by pan-African banking conglomerate Ecobank Transnational International for an alleged $19-million debt owed to the financial services conglomerate.

The debt is related to a $15-million and $1.75-million credit facility provided by Ecobank to Vigeo Holdings Limited, a Nigerian energy company led by Osibodu.

The facility was made available to the firm to facilitate the acquisition of shares and interest in a motor tug boat known as “Lady Margret,” now known as “Vigeo Olufunke,” from a Norwegian entity.

In a court document, Ecobank revealed that it granted Vigeo a total of N1.3 billion ($3.3 million) to support its working capital requirements with a tenor of 12 months and an interest rate of 16 percent per annum via another duly executed multiple credit facility offer.

The bank explained that Vigeo and Osibodu secured the credit facilities with a lien on blue-chip company shares worth N500 million ($1.2 million), a receipt of irrevocable conciliation of contract proceeds from oil majors in favor of the bank, and goods stocks worth N150 million ($360,542).

In the event of default, the Nigerian businessman backed the credit facilities with a personal guarantee and a duly notarized statement of a net worth of N2 billion ($4.81 million).

Ecobank informed Vigeo in a letter dated Sept. 2, 2014 that its current indebtedness stood at N798.2 million ($1.9 million) and $13.55 million as of June 25, 2013, with an additional $4.26 million, following several meetings regarding the indebtedness.

The bank is asking the court to declare that Osibodu and other related entities owe it $16.9 million and N862 million ($2.1 million) as of Dec. 1, 2016, with interest accruing at the agreed-upon rate, for a total debt of $19 million.

In light of the settlement agreement, the bank is also requesting that the court order the forfeiture of Vigeo House in Ikoyi, Lagos, which was valued at N800 million ($1.9 million) in August 2007, and another property at 16A Milverton Road in Ikoyi, which was valued at N700 million ($1.7 million) in August 2007.