A high court in Lagos, Nigeria’s largest city, has ordered the Asset Management Corporation of Nigeria (AMCON) to seize the assets of one of the country’s most prominent businessmen, Babatunde Folawiyo.
According to PM News, the asset seizure was ordered by the Federal High Court following an application by a Nigerian law firm as a result of Falawiyo’s unpaid debt of N727.9 million ($1.75 million).
According to reports, Folawiyo, a director of Compagnie de Logistic limited, allegedly spearheaded a N250-million ($602,000) credit facility from Spring Bank, which is now managed by AMCON.
The outstanding credit facility has grown to N533.4 million ($1.3 million), representing the total debt due and payable to AMCON, while the annual interest chargeable on the loan brings the total repayment from Compagnie de Logistic to N727.9 million ($1.75 million).
In its application, Seun Omotoba & Co. urged the court to allow the interim forfeiture of Folawiyo’s assets pending the final determination of the loan repayment suit.
In addition, the firm requested an order compelling Folawiyo, his agents, servants and creditors to deliver to AMCON possession of all his assets, bank accounts, or any other asset, wherever located, with interest.
After hearing the submission, Justice Lewis Allagoa granted the request as requested, including interim possession of the respondent’s property at Block 138, Plot 13, Tunde Joda Drive, Lekki Phase 1, Lagos State, all of which belongs to Folawiyo.
Aside from his ownership of Compagnie de Logistic, Folawiyo has a beneficial one-percent stake in MTN Nigeria, the most profitable subsidiary of the South African multinational telecom company, MTN Group.
As of press time, the market value of his stake in MTN Nigeria was N44.64 billion ($107.4 million), making him one of the Nigerian Exchange’s wealthiest investors.