NOVARE APPEALS TO SUPREME COURT TO PROTECT ITS FOREIGN DIRECT INVESTMENTS IN FIRST GUARANTEE PENSION LIMITED IN NIGERIA

The Court of Appeal sitting in Abuja on Thursday, April 30, 2020 delivered Judgment in three related Appeals involving disputes between a foreign investor, Novare Holdings (Pty) Limited, the National Pension Commission (PENCOM) and First Guarantee Pension Limited, a Pension Fund Administrator.

Novare Holdings had over a decade ago, brought in foreign investments in First Guarantee Pensions Limited, and following shareholders disputes, PENCOM allegedly removed the management of the Company and took over same.

Novare Holdings had commenced an action at the Federal High Court, Abuja by way of fundamental rights claims following PENCOM’s refusal to grant it fair hearing prior to making and enforcing decisions that significantly affected Novare’s position in First Guarantee Pension Limited. Judgment  was delivered in favour of Novare Holdings stating that its right to fair hearing was breached.

PENCOM and First Guarantee Pensions Limited then appealed to the Court of Appeal, which in its judgment delivered today allowed the Appeal and held that the fundamental rights claim was only accessory and ancillary to the main claim and thus could not be brought under the Fundamental Human Rights Enforcement Rules.

The Court, further held that the main issue was breach of contractual rights and not substantially fair hearing and declined to consider or rule on the other grounds of appeal before it on the ground that technically, to delve into these issues would be merely to engage in an academic exercise.

Parties were not in court due to the Coronavirus lockdown in Abuja but were duly represented by their Counsels duringthe Judgment.

Our reporters gather that the appeals to the Supreme Court were promptly filed today against the Judgments of the Court of Appeal. It equally filed a motion seeking to restrain PENCOM, First Guarantee Pension Limited or anyone from interfering with the management or assets of First Guarantee Pension Limited pending the determination of the Appeal by the Supreme Court. PENCOM had for over 8 years not turned the company to either faction of shareholders because the dispute was on appeal at the Court of Appeal.

With the matter now on appeal at the Supreme Court, analysts are poised to see whether PENCOM will or will not maintain the same principle of respect of the fact of an appeal still pending, this time, before the Apex Court of Nigeria.

Today’s Judgment comes in the thick of the Coronavirus virus pandemic and lockdown, and at a time of economic challenges in Nigeria, worsened by dipping oil prices.