The word “teamwork” sounds cliché. However, it must be said that teamwork is a concept which cannot be overemphasised especially in the context of a modern day 21st century law firm.
Jide Babalola is a Senior Associate in the firm’s Corporate, Capital markets & Finance and Real Estate & Mining Practice Teams. Jide is based in the Abuja office and has over the years gained particular expertise on corporate finance and commercial transactions.
He has recently been involved in the following transactions:
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Since oil was discovered in Nigeria in the mid-1950s, coupled with the oil boom experience in the 1970s, oil income has played a significant role in the government’s revenue, particularly contributing over 9% to the nations GDP in the year 2015. However, due to dwindling oil prices in recent times, the Nigerian government is championing a drive to diversify the economy, with a view to ensuring it becomes less dependent on oil income.
As the quest for development by emerging markets like Nigeria deepens, the importance of infrastructure in various sectors of the economy cannot be over emphasised. However, a major deterrent for infrastructural growth is the shortage of funds for the successful execution of same. For example, in Nigeria, it is reported that an estimated sum of US$2.9 trillion is required to meet its infrastructural deficit by 2043.
Historically, barter, a system wherein goods and services are traded between two or more parties without the use of a medium of exchange such as money, was the hallmark of trade. This trading approach enabled parties to exchange mutually beneficial goods and services, despite the lack of hard currency. In modern times, even though bartering is no longer common place, the principles behind the concept still manifests in certain structured investments referred to as Payment In Kind (“PIK”) investments.
Security is crucial in virtually every loan transaction as it ensures that a lender is able to recover its costs in the event of a borrower’s default. Over the years, lenders have accepted various security packages in support of a borrower’s obligations including fixed and floating charges. A floating charge over the assets of a borrower may often be preferred by the borrower due to its nature as a form of security that does not hamper the borrower’s seamless conduct of its daily business operations whilst also serving as security for its obligations to lenders.