Workers of Nigerian Braiding Manufacturers (NBM), Kano, established in 1962, have vowed to challenge the attempt by Asset Management Corporation of Nigeria (AMCON) to sell the company over N1.5bn debt.

They described the act as a breach of the court order issued by a Kano State High Court which calls for the maintenance of the status quo.

Speaking to Daily Trust, NBM’s accountant, Mr Lawrence Peter Kanu, alleged that the company with direct staff strength of over 500 and over 1000 casual workers was shut down on December 13 2018 without any form of formal or informal notice serve on its workers or management.

He said, the company had been in legal battle with a commercial bank for 12 years at a high court in Kano,  adding that it was the court that ordered that a status quo be maintained pending the outcome of the suit before it.

“For 12 good years we were operating based on the high court order which says a status quo should be maintained pending the court’s outcome. However, on 13th December, 2018, we were told that the company has been taken over by AMCON and therefore should be shut down; and we demanded for legal evidences to back their actions, they showed us an industrial court letter to that effect,” said Mr. Kanu.

The company accountant further stated that the legal battle was as a result of the exorbitant charges of interest on the overdraft acquired by the company which he said goes contrary to the rate agreed upon.

“The company has to take the issue before a high court to seek redress on the exorbitant charges of interest on the overdraft,” he said.

Also reacting, the state Chairman National Union of Textile, Garment and Tailoring Workers of Nigeria, comrade Ali Baba; said the issue had been taken by the union, adding that the lackadaisical approach to the matter by AMCON representative in Kano has not helped matters.

“When we came, we tried to locate AMCON’s office in Kano but we were told that they don’t have an office but there is someone in Kano handling the issue. We tried to contact him but he kept promising and failing to meet with us. This is a situation we will not allow to go like that, we will ensure that we follow it to a logical conclusion,” said Comrade Ali.

Reacting,  representative of AMCON, Dr Yakubu Fobur, stated that the issue is slated for ruling at a high court in Kano on the 7th of February, adding that the company will be re-opened soon.

“We have no intention to subject people to unwarranted hardship that is why we have reached a logical conclusion to re-open the company very soon though the matter was slated for ruling on the 7th February 2019,” Daily Trust reports.