The Asset Management Corporation of Nigeria (AMCON) has initiated legal proceedings against Beracah Lubrications Nigeria Limited in the Federal High Court in Lagos, seeking repayment of a debt amounting to N9,960,479,265.

The lawsuit also names the company's directors—Sola Oluwadare, Osadare Edebisi Williams, and Kola Adesina—as co-defendants, highlighting their roles as significant shareholders and decision-makers within Beracah Lubrications.

According to the claim filed by AMCON's attorney, Chineme Nweke from Anfield Solicitors, the debt originated from credit and overdraft facilities totaling $10,000,000 extended to Beracah Lubrications by two former banks, Spring Bank PLC and Bank PHB Plc.

AMCON asserts that it has made numerous attempts to recover the debt, but the defendants have allegedly evaded communication and disregarded all forms of notice, both verbal and written.

The loan was reportedly secured by a vessel named ‘MT Oragreen.’

However, a search with the Nigerian Maritime Administration and Safety Agency (NIMASA) indicated that the vessel has been removed from their records, making it untraceable, possibly due to its unseaworthiness or its conversion to scrap.

Furthermore, a property located at Plot 1b, Block 104, Peninsula Residential Scheme, Eti-Osa, Lagos, was pledged as collateral for the loan.

AMCON claims that this property was fraudulently offered as security by Sola Oluwadare without the approval of its legitimate owner, Akintayo Abiodun Sokunbi.

As of December 2022, the total outstanding debt owed by Beracah Lubrications and its directors amounts to N9,960,479,265, inclusive of accrued interest.

AMCON is seeking a court order for the payment of this sum, along with an additional interest rate of 24% per annum from June 2022 until the judgment is rendered, and 21% per annum thereafter until the debt is fully settled.

Additionally, AMCON is requesting an order to freeze any funds associated with the defendants in Nigerian banks to fulfill the judgment amount. The hearing for this case is set for October 29, 2024.