FIJ
In 1983, Engr. Banji Daramola, who is now 80 years old, took a loan of N210,000 from the Nigerian Industrial Development Bank (NIDB), now the Bank of Industry (BoI).
Daramola told FIJ that the loan was to buy and import raw materials and plant machinery for production from abroad for his factory at the time called Industries General Nigeria Limited in Okemesi, Ekiti State.
He said his trouble began when BoI changed their currency of payment from Naira to the United States Dollar without prior notice. He said he objected to this new contract, which not only sank him deeper into debt but was also implemented without his notice.
“In 1983, I borrowed N210,000 from BoI, formerly NIBD, to buy raw materials and plant machinery from Germany and India,” Daramola told FIJ.
“I took two loans from them: one for the purchase of raw materials and the other for working capital. The working capital loan, $111,841, was taken in 1991.
“I had finished servicing both loans when BoI announced that they were changing the currency of servicing loans from Naira to Dollar, which was not part of the agreement.
I protested with a letter that I had finished paying both loans. They refused, and this was the beginning of our legal battle. I refused to honour their new terms and conditions.”
The former managing director said BoI not only locked his factory, Industrial General, but also sold it to Agbonna Industries Limited, which became the new owner of the property.
Industrial General was in the production of carbon brushes for industries and the maintenance of motors, generators and circuit breakers before its sale by BoI.
