Why Globacom & Conoil may be shut down

Nigeria’s second richest man, Mike Adenuga, and some of his companies may be shut down due to tax evasion, debts and administrative titubation.

Mike Adenuga is reported to be owing many companies tens of billions of naira.

He has refused to pay up too.

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The situation surrounding Adenuga’s debt has so deteriorated that some creditor companies are already seeking legal redress.

One of such companies have effectively secured an interim order from a federal court to place one of Mr. Adenuga’s companies under receivership.

Adenuga, an oil magnate and telecom mogul, has forced some of his creditors to close shop due to Adenuga’s inability to pay up.

According to Forbe’s magazine, Adenuga made almost $5 billion dollars last year alone.

Some of the companies Adenuga owes includes Depthwize, Baker Hughes, and Total oil.

All debts run into billions.

People are baffled why Adenuga has declined paying Total the $28.5 million it owes her.

Total operates the OML 136 asset for ConOil.

This particular asset is reputed to be one of the largest gas fields in Nigeria, with a proven reserve of 11 trillion cubic feet of gas.

Adenuga is also owing a British oil firm called Vitol, over its alleged failure to pay a $60 million debt.

Vitol secured a court judgement in the UK regarding the debt, but was unable to enforce it in Nigeria.

The reason is because Adenuga secured a stay of execution of the court order from a Nigerian court.

ConOil seem to be having serious administrative issues. For instance, the oil giant was granted exploration license for OPL 257 in 2005 by the federal government.

The company is yet to commence operations till date.

That license has expired.

Adenuga’s companies have also had tax issues in the recent past.

ConOil office was sealed off some years ago over non payment of taxes.

The Federal Internal Revenue also shut down Adenuga’s Globacom office for taxes amounting to N24.3 billion.

This year, Osun State Internal Revenue Service (OIRS) sealed Globacom’s offices for tax fraud too.

The Asset Management Company of Nigeria (AMCON) also has Adenuga as one of its debtors.

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Adenuga made a profit of $5 billion dollars last year alone, but how he refuses to pay his debtors beats our imagination.

It is believed the Buhari led administration may have to shut down Adenuga’s operations till he clears up his debts; particularly that of AMCON.