Business
UNION BANK TAKES OVER SANI DANGOTE’S DANSA FOODS OVER N4 BILLION DEBT
This is not the best of times for Dana Foods boss, Sani Dangote who is the junior brother of one of
the Nigeria foremost Industrialist, Alhaji Aliko Dangote.
He is reported to have run into trouble waters as a commercial bank in Nigeria Union bank plc has appointed a Lagos Lawyer, Barrister Chukwudi Enebeli of Pinheiro and company as Receiver/Manager over his company Dansa foods limited.
The takeover of Dansa foods limited was as a result of inability of Alhaji Sani Dangote to pay back a loan of N4 billion he obtained from the bank.
Mr Chukwudi Enebeli was appointed under the deed of Denture to take over all assets of Dansa Foods limited a company incorporated in Nigeria and having its registered office at 1, Dansa Drive off
Badagry Expressway, Abule Oshun Lagos as a charge was created in favour of Union bank
over all fixed and floating assets of the company to secure the monies expressly borrowed.
By virtue of the said of the ALL ASSETS DEBENTURE, the balance of an outstanding sums thereby secured have become payable and the company has failed or neglected to pay the sums due in spite of repeated demands by the bank.
Consequently, further to the power set out in ALL ASSETS DEBENTURE the bank then exercise its power to appoint a receiver as set down in the said ALL ASSETS DEBENTUURE The Deed of Debenture appointing Mr Chukwudi Enebeli of Pinheiro and company 8A Taiwo Koya street. Ilupeju Bye- Pass Lagos has been filed and registered with Corporate Affair Commission at Abuja.
Meanwhile, due to the obstinacy and resistance of the Directors of Dansa foods company to allow the Receiver/Manager to perform his duty of running the company smoothly, the Receiver/Manager Barrister Chukuwudi Enebeli alongside Union bank of Nigeria Plc and Dansa Foods limited in Receivership have dragged Alhaji Sani Dangote and three other Directors of the company Alhaji Abdulkaarim Lawal Kaita, Alhaji Ahmed Shehu Yakasai and Alhaji Mohammed Sani Dangote before a Federal high court in Lagos,seeking the following orders of the court:
(1) A Declaration that upon the
appointment of Mr chukwudi Enebeli as
Receiver/Manager over Dansa foods Limited
the respondents who are Directors and
shareholders of the company have no power
or control over the company or any of its
assets.
(2) A Declaration that by virtue of
clauses 8 and 9 of the Deed of Debenture
dated 29th of May,2009 in favour of Mr
chukwudi Enebeli the Receiver/Manager
appointed by Union bank of Nigeria Plc is
entitled to perform all functions
specified in the deed of all assets
Debenture.
(3) An order directing all creditors of
Dansa foods Limited to pay and domicile
all monies due, incomes,or receivables
accruing to or due to the company into the
receivership account opened by the
Receive/Manager in Union bank Plc.
(4)A order of the court directing the
Receiver/Manager in exercise and discharge
of his function to take such steps as may
necessary and exercise such powers
including the powers to take over and
apply in realization of the company’s debt
to Union bank Plc all monies due to the
company
(5) An order restraining all the
respondents and their agents from
disturbing the Receiver/Manager from
exercising. Powers vested in him whether
by himself or his agents
(6) An order directing all Police Officers
of the Federal Republic of Nigeria or
other officers concerned with security and
enforcement of order to with “The
Inspector General of Police, Assistant.
Inspector General of Police and other
Police officers so instructed by the
Receiver/Manager to assist him in
performance of his duutes
In an affidavit sworn to by Mrs Olorunfunmilola Ayoola,head Food team of Union bank ,filed and argued before the court by Mr Kemi Pinheiro SAN,the Deponent averred that sometimes in 2008 Dansa Foods Limited was at its request granted loan of N5,200,000,000 by Union bank plc
The loan comprises of the following:
(1)Overdraft-N500million
(2)Short term loan for advertisement-
N500million
(3)Equipment lease-US$2,500,000,
(N300million)
(4)Equipment lease(sale and lease back)-US
$2,500,000(N300milion)
(5)Import Finance-US
$30,000,000(3,600,000,000)
The loan was disbursed to Dansa Foods company and fully utilized by the company.
The company duly executed a deed of all assets debenture in favour of Union bank
However, the company has failed to liquidate its indebtedness to the bank despite the services of several demand letters by the bank and its solicitors on the company.
Consequent upon the default of the company, the bank in exercise of its power under the clauses 8 and 9 of the all assets debenture appointed Mr Chukuwudi Enebeli as Receiver/Manager over the company,subsequently the said deed of appointment was filed at the Corporate Affairs Commission and a certificate of such filling accordingly issued.
Mrs Ayoola averred further that the loans granted the company are depositors funds and if same is not recover through the Receiver/Manager,the survival of the bank will jeopardized in view of the amount of the indebtedness consequently urged the court to grant the prayers sought by the bank so as to prevent the respondents who are directors and shareholder of the company from dissipating the assets of the company and for the effective discharge of the powers of the Receiver/Manager.
However, in a preliminary objection filed before the court by Mr Rickey Tarfa SAN on behalf of the respondents,he urged the court to strick out the suit on the ground that Mr ckuwudi Enebeli being a party in the suit,lacks the capacity to act as counsel for parties in the suit of the
instant application,in addition Mr Segun Odubela from the law firm of Ricky Tarfa contended that the court processes were signed by Chukwudi Enebeli as counsel acting for Union bank plc and Dansa Foods
Limited in receivership.
The presiding Judge Mohammed Yunusa has adjourned till 19th October, when
judgement will be delivered.
Business
FLOUTING CONTRACTUAL OBLIGATIONS, DEFYING COURT ORDERS, AND DISREGARDING ARBITRATION: THE FACTS BEHIND HADIZA BALA USMAN’S ABUSE OF OFFICE AS NPA MD
FLOUTING CONTRACTUAL OBLIGATIONS, DEFYING COURT ORDERS, AND DISREGARDING ARBITRATION: THE FACTS BEHIND HADIZA BALA USMAN’S ABUSE OF OFFICE AS NPA MD
By BUA Group | May 31, 2025
We have noted recent public statements made by Ms. Hadiza Bala Usman, the former Managing Director of the Nigerian Ports Authority (NPA), who was sacked from office. In her comments, she accused BUA Group and our Chairman, Abdul Samad Rabiu, of breaching a concession agreement and distorting facts. These claims were made in response to our Chairman’s interview and article, “Two Years of President Tinubu: A Business Perspective” (watch at https://bit.ly/pbatbua), which celebrated Nigeria’s reform trajectory and referenced prior instances of arbitrary disruptions to business operations, without naming anyone – a situation that has now been curtailed by President Tinubu’s no-nonsense approach to bringing sanity and stability to the business environment in Nigeria.
Ordinarily, we would not engage, but the distortions in her response necessitate this factual clarification, especially as they relate to her actions during her tenure as MD of the NPA.
THE CONTRACT AND WHAT SHE OMITTED
In 2006,
BUA entered into a valid long lease agreement with the NPA to rehabilitate and operate Terminal B at Rivers Port in Port Harcourt, Rivers State. Long before Ms. Usman’s appointment, BUA had begun formal engagement with the NPA to address outstanding remedial works and infrastructural deficiencies. These discussions were nearing their conclusion when she assumed office.
Rather than build on that process, Ms. Usman ignored BUA’s requests and obligations under the agreement. In 2016, BUA wrote to the NPA under Article 8.4 of the lease, mandating concessionaires to report environmental and safety concerns and to seek approval for remedial works. Rather than act constructively, Ms. Usman used that letter as a pretext to issue a termination notice and summarily shut down the terminal, without providing any prior warning, consultation, or invoking the dispute resolution clause.
She forgot or failed to disclose in her response that the NPA, under her leadership, was itself in material breach of core obligations including, failing to hand over critical portions of the port, leaving derelict iron ore on the berths, failing to dredge or repair quay walls, and neglecting to provide mandatory security. These lapses were significant impediments to BUA’s operations and, as a result, led to disputes between the parties.
ILLEGALITY, CONTEMPT, AND DISREGARD FOR CONTRACTUAL MECHANISMS
After the unlawful termination, BUA approached the Federal High Court, which promptly granted an injunction restraining the NPA from proceeding with termination. The NPA itself then referred the dispute to arbitration, as stipulated in Section 17.3 of the agreement, which clearly states:
“Any dispute, controversy or claim… shall be exclusively and finally settled under the dispute resolution process prescribed in this Article.”
Despite this, Ms. Usman, against the advice of her agency, unilaterally decommissioned the berths, thereby violating both the agreement and a court injunction. To be clear, the concession agreement granted her no such power to decommission. If she believes otherwise, we invite her to publicly cite the specific clause that authorizes this action.
To further compound the illegality, BUA, after providing the guarantees and indemnities requested by the NPA, was permitted to resume operations briefly. Merely three weeks later, the terminal was again shut down, this time by Ms. Usman’s instruction. This left no doubt that her actions were motivated not by due process, but by personal animosity and abuse of office.
BUA subsequently filed contempt proceedings and was looking at estimated losses of over $10 million. These proceedings were only withdrawn out of respect for national interest and following the intervention of well-meaning Nigerians within and outside the government.
PRESIDENT BUHARI WAS NOT MISINFORMED—HE ACTED ON FACTS AND LAW
Ms. Usman’s claim that former President Muhammadu Buhari was “misinformed” when he reversed her actions is false, disrespectful, and disingenuous.
Following a meeting that our Chairman had the privilege of holding with President Buhari in 2018, he presented the matter to the President, who then directed the Office of the Attorney General of the Federation to conduct a thorough legal review and investigate the situation. The AGF invited all parties, including Ms. Usman, to several meetings. We never saw her at any of them.
Nevertheless, the AGF proceeded to undertake a comprehensive review of the contract, the litigation, the arbitration clause, and all correspondence and actions by BUA and NPA. The legal advice (attached herewith) found that the termination was unlawful, the decommissioning was without any legal basis, and that BUA’s rights should be reinstated.
It was on this basis that President Buhari ordered the reversal of her unlawful actions. His intervention preserved the sanctity of the contract, saved over 4,000 jobs, and BUA’s $500 million integrated investment cluster involving flour, pasta, and sugar processing facilities, which were all dependent on terminal access. For this, we remain deeply grateful to former President Buhari.
As our Chairman said in his interview, imagine if he weren’t privileged to have access. Nonetheless, this culture of impunity has been significantly curtailed under President Tinubu’s leadership, as many are aware that they could be dismissed or imprisoned if they abuse their positions.
POST-HADIZA: DUE PROCESS RESTORED, INVESTMENT RESUMED
Following Ms. Usman’s removal from office, the NPA, under new leadership, implemented the AGF’s position. In 2022, BUA was granted formal approval to resume reconstruction works. The contract was awarded to TREVI, and BUA has since invested over $65 million—entirely self-funded and with no recourse to public funds or subsidies. Work is ongoing, and completion is expected in the first quarter of 2026.
THE REAL DANGER: INVESTOR CONFIDENCE AND THE RULE OF LAW
We must state clearly that this matter goes beyond BUA. Had Ms. Usman’s actions been allowed to stand, it would have sent a disastrous signal that contracts in Nigeria are worthless, court orders are optional, and public institutions or individuals can act unilaterally without consequence. We must never return to that era.
Nigeria’s reform success today is rooted in respecting contracts, due process, and investor confidence—principles being restored under President Tinubu’s administration, under which BUA has committed over $1 billion in new investments across energy, food processing, manufacturing, infrastructure, and social interventions.
We wish to emphasise that Ms. Usman is entitled to her opinions, irrespective of how distorted they may be. However, she is not entitled to distort the facts or rewrite history. We do not seek a public spat and would like her to concentrate on fulfilling her duties in her new role under the strong leadership of President Tinubu.
We therefore simply restate the facts that Ms Hadiza Bala-Usman had no authority to decommission Terminal B unilaterally. She also acted in defiance of a court injunction and contractual procedure, and her actions caused significant economic loss of over USD10 million, reputational risk to BUA, and investor concern for Nigeria.
Our core message remains the same: public office should be viewed as a position of trust rather than a platform for personal biases. Those granted public power need to resist the temptation to let prejudice, ego, and vendetta influence their actions.
If Ms Hadiza Bala-Usman believes she acted lawfully, we challenge her to cite the specific clause or clauses that guided her unlawful actions. If not, let the facts remain where they belong — in the public record.
Signed,
BUA Group
May 31, 2025
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