Stanbic IBTC Closes NECIT Nigeria Over Alleged Debt Dispute
Stanbic IBTC Bank has taken possession of NECIT Nigeria Limited’s factory in Sokoto State, citing unpaid debts related to a trade transaction concluded in 2021. The closure has reportedly left over 3,000 workers stranded and caused the destruction of multimillion-naira worth of chemicals, sparking outrage from NECIT and stakeholders.
The Dispute
NECIT Nigeria Limited, a downstream oil and gas company specializing in lubricant blending and distribution, claims it was operating under a structured financial agreement with Stanbic IBTC. According to NECIT’s Financial Controller, Seyi Okunuga, the arrangement involved a collateral management system where the bank controlled payments and product release to customers through a dedicated account.
NECIT alleges that despite fulfilling the terms of the agreement, the bank failed to liquidate its exposure promptly and later demanded additional funds after the devaluation of the naira in 2023. “The purported debt arose due to the bank’s ineptitude and unprofessionalism,” NECIT founder Dr. Emmanuel Iheagwazi stated.
He added:
“The goods sold through the bank in 2021 were not liquidated, and three years later, they are asking for extra money. It’s an unimaginable burden caused by their inefficiency.”
Allegations of Mismanagement
NECIT further accused Stanbic IBTC of unethical practices, including warehousing funds instead of bidding for foreign exchange and imposing inflated interest charges. The company claims the bank’s actions have jeopardized its operations and endangered the livelihoods of thousands of workers.
Dr. Iheagwazi described the takeover as a “dirty game,” alleging that security operatives and thugs were used to forcibly shut the factory while production was ongoing.
Stanbic IBTC’s Response
In response, Stanbic IBTC CEO Wole Adeniyi stated:
“NECIT Nigeria Limited is currently indebted to Stanbic IBTC due to trade exposure related to a business deal concluded in 2021. Despite our efforts to resolve the matter, the customer’s indebtedness remains outstanding. We had no option but to appoint a receiver manager to take over the pledged assets.”
The bank emphasized that the appointment of the receiver was in line with legal procedures to recover the outstanding debt.
Implications and Public Outcry
The factory’s closure and the job losses it has caused have drawn criticism, with stakeholders calling for intervention to mediate the dispute. NECIT, a company known for its contributions to Nigeria’s economy, asserts that it is not indebted and has provided documentation to support its claims.
Call for Resolution
Industry watchers suggest that both parties explore alternative dispute resolution mechanisms to avoid further economic and social disruption. The incident highlights the importance of clear financial agreements and the need for ethical banking practices to foster business sustainability in Nigeria.
The unfolding dispute underscores broader issues in the Nigerian financial and business environment, particularly the tension between lenders and borrowers in a volatile economic climate. FBI Extradites Nigerian Over S6m Cyber Fraud Allegation
