New Telegraph

N5.8bn debt: Omatek shareholders appeal to BOI for reopening

Shareholders in Nigeria’s indigenous ICT company, Omatek Ventures Plc, has appealed to the Bank of Industry to reopen the company, which it shut since 2017.

 

The shareholders made the appeal at the company’s combined five years Annual General Meeting for the year 2015, 2016, 2017, 2018 and 2019, which was held in Lagos. In December 2012, the firm had secured a term loan and working capital facilities totalling N5.81 billion from BOI for the purpose of financing the procurement of assembly components for the production of laptops.

 

But things went bad for the company and it could not service this loan, which made the lender to obtain a court order to take over premises of the tech company.

 

According to the shareholders, the closure of the company’s flagship factory in Oregun, Lagos by the BOI has halted the company’s opera  tions, thus making it impossible for the company to make any sales from which it could service its loans.

 

They appealed to the bank to engage the new management of the company on resolving the loan crisis rather than lock a productive factory with computer stocks valued at billions of naira for over three years. Worried by the state of the indigenous company, the  Nigeria Computer Society (NCS), the umbrella body of all ICT companies in Nigeria, had earlier appealed to the Federal Government to intervene in the BOI/Omatek row, noting that country was also losing as the shut company was a major employer of Nigerian youth.

 

Briefing the shareholders on the status of the company at the AGM, the Omatek’s Chairman, Dr. Timothy  Farinre, said shortly after the demise of the founder, Mrs Florence Seriki, the BOI appointed a receiver over some facility granted to Omatek. “As we speak, the case is still in court. BOI’s appeal is slated for hearing at the Federal Appeal Court in Lagos in June 2021. We have been on this court case since year 2017. The operation of the group had been constrained by the receiver order.

 

“The board and management had made appeals for an out of court settlement with BOI, but not successful thus far. Omatek is strategic to Nigeria’s ICT sector. We are the first indigenous company to be quoted on the Nigerian Stock Exchange and had sold several thousands of quality laptops, smart phones, tablets, AIO computers, several devices, LED lights etc. to several ministries, departments, agencies in public sector and in private sector.

 

“Omatek is the first point of call for graduating students from tertiary institutions for job placements. We also have several resource centers in several tertiary institutions in Nigeria to assist students develop their ICT skills from school. Locking up the factory with goods worth billions of Naira is not the better option,” the chairman said.

 

On efforts to reposition the company, Farinre said the board and management were looking at inviting fresh investors to inject working capital into the group. “The board is also looking at starting new activities around software business and our light and solar businesses.

 

We are looking at engaging consultants to help in resolving the debt crisis, so Omatek can take her rightful place in the development of Nigeria’s ICT sector. Omatek alone can employ over 1,500 of our teeming youth in our Oregun factory, both directly and indirectly if given the opportunity,” he said

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