Tony Elumelu of Heirs Holdings took N41.5b loan at 15% interest rate per annum and defaulted, says CBN
The Central Bank of Nigeria (CBN) has revealed that Tony Elumelu, the founder and chairman of Heirs Holdings, took a loan of N41.5 billion from a commercial bank at an interest rate of 15% per annum and defaulted on the repayment.
This disclosure was made by the CBN in a letter to the House of Representatives Committee on Banking and Currency, which is currently investigating the alleged non-repayment of loans by some wealthy Nigerians.
According to the CBN, the loan was granted to Elumelu in 2014 to finance the expansion of his businesses. However, Elumelu failed to repay the loan, even after receiving several reminders from the bank.
The CBN’s letter to the House Committee further stated that Elumelu’s default on the loan has caused the bank a significant loss. The bank has been forced to borrow money at a higher interest rate to cover the loss, which has increased its overall cost of operations.
The CBN’s revelation has sparked outrage among Nigerians, who are calling on the government to take action against Elumelu and other wealthy Nigerians who have defaulted on their loans. Many Nigerians believe that Elumelu’s default is a clear case of economic sabotage and that he should be held accountable for his actions.
In response to the allegations, Heirs Holdings has issued a statement denying that Elumelu defaulted on the loan. The statement claims that Elumelu is in good standing with the bank and that he has been making regular repayments on the loan.
However, the CBN’s letter has contradicted Heirs Holdings’ claims. The CBN has stated that Elumelu has not made any repayments on the loan since 2018.
The CBN’s disclosure is the latest in a series of allegations of financial wrongdoing against Elumelu. In 2019, Elumelu was accused of diverting N2.5 billion from the coffers of the African Petroleum Plc (AP Plc), which he founded and chaired at the time.
The Economic and Financial Crimes Commission (EFCC) is currently investigating the allegations against Elumelu. If found guilty, Elumelu could face a jail term of up to 10 years.
The allegations against Elumelu have raised serious questions about the integrity of the Nigerian financial system. It is also a reminder of the impunity with which some wealthy Nigerians have been operating.
The Nigerian government must take swift action to address the allegations against Elumelu and other wealthy Nigerians who have defaulted on their loans. The government must also take steps to strengthen the Nigerian financial system and make it more difficult for wealthy Nigerians to engage in financial wrongdoing.
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