Elon Musk is reportedly at risk of defaulting on the money borrowed to fund his acquisition of Twitter, now rebranded as “X.”

The acquisition, finalized in October for a staggering $44 billion, was partly financed with a $13 billion loan from major financial institutions, including Morgan Stanley, Bank of America, and Barclays.

These loans were secured by a portion of Musk’s Tesla stock.

In the year since Musk assumed ownership of X, the platform has encountered a series of challenges. The changes he brought to the platform have exacerbated revenue problems, resulting in a soured relationship between X and advertisers. Advertisers, unhappy with content moderation and other changes following Musk’s takeover, have departed in significant numbers and have yet to return. The marketing consultancy firm Ebiquity reported that only two of the world’s top 100 advertisers chose to advertise on X in the previous month.

The world’s wealthiest person has made several attempts to recoup his investment, including monetizing certain features of X, with a particular focus on verification badges. He has also strived to transform the platform into a financial hub, part of his broader “everything app” concept. Despite these efforts, the monetized features have not yielded the expected revenue, and user adoption has been slow.

Moreover, concerns have arisen about X’s user growth, which reports suggest has been declining, contrary to claims made by Musk and CEO Linda Yaccarino. App downloads fell by nearly 30% between July and September, according to data from Apptopia.

These challenges have led to concerns that Musk may default on his loan payments, as reported by Insider. Fidelity, an asset manager holding a stake in the company, has drastically reduced its valuation of Twitter, marking it down by two-thirds, reducing the company’s estimated worth to approximately $15 billion.

The Wall Street Journal has reported that Musk’s lenders are taking steps to unload the debt. Bankers involved in the transaction have suggested that X could receive a junk bond rating, indicating a heightened risk of loan default. This assessment arises from concerns regarding Musk’s unconventional management style and a sluggish advertising market.

Insiders familiar with the matter informed the Journal that the banks anticipate absorbing a 15% loss, totaling $2 billion. For major stakeholders like Morgan Stanley and Bank of America, this would translate into hundreds of millions in losses.

While Musk has acknowledged that it may take time for his changes to produce financial results, the burden of X’s revenue shortfalls is likely to be shouldered by the lending banks.

This article will be dealing with the revocation of rights of occupancy under Nigerian law, particularly :-

– The extent of a governor’s power to revoke titles of occupancy under Nigerian law

– Overriding Public Interests

– Compensation payable on revocation of rights of occupancy under Nigerian law

What is the extent of a governor’s power to revoke rights of occupancy under Nigerian law?

– It shall be lawful for a governor to revoke a right of occupancy for overriding public interests.

– The governor shall revoke a right of occupancy in the event of the issue of a notice by or on behalf of the president if such notice declares such land to be required by the Federal Government for public purposes.

What exactly are overriding interests?

– Overriding public interests in the case of a statutory of occupancy means :-

a). The alienation by the occupier contrary to the provisions of the act or any regulations.

b). The requirement of the land by the governor of the state, or the requirement of the land by the government of the federation for public purposes of the federation.

c). The requirement of the land for mining purposes or oil pipelines.

– Overriding public interests in the case of a customary right means :-

a). The requirement of the land by a governor or local government of the state, in either case for public purposes within the state, or the requirement of the land by the Federal Government for public purposes of the Federation.

b). The requirement of the land for mining purposes or oil pipelines.

c). The requirement of the land for the extraction of building materials.

d). The alienation by occupier without the consent required.

What are the grounds for the revocation of a statutory right of occupancy?

– The governor may revoke a statutory right of occupancy on the grounds of :-

a). A breach of any of the provisions which a certificate of occupancy is by the Land Use Act deemed to contain.

b). A breach of any term contained in the certificate of occupancy or in any contract made under the Act. 

c). A refusal or neglect to accept and pay for a certificate which was issued on evidence of a right of occupancy buy has been cancelled by the governor. 

What is the provision of law on compensation payable on revocation of a right of occupancy by a governor?

– If a right is revoked for the reasons mentioned above (public purposes), the holder and the occupier shall be entitled to compensation for the valie at the date of revocation of their inexhausted improvements.

– Where mining or oil pipelines are involved, the holder and occupier shall be entitled to compensation under the appropriate provisions of the Mineral & Mining Act or the Petroleum Industry Act or subsidiary/subsequent regulations.

– If the holder or the occupier entitled to compensation under the

Land Use Act is a community tje governor may direct that any compensation payable to it shall be paid :-

a) . To the community

b). To the chief of leader of the community to be disposed of by him for the benefit of the community in accordance with the applicable customary law, or

c). Into some fund specified by the governor for the purpose of being utilized or applied for the benefit of the community.

What exactly is the extent of compensation applicable under Nigerian law?

– Compensation shall be as respects:-

a). The land, for an amount equal to the rent,if any, paid by the occupier being the year in which the right of occupancy was revoked. 

b). Buildings, installation or improvements thereon, for the amount of the replacement of the building, installation or improvement, i.e. such cost as may be assessed on the basis of the prescribed method of assessment as determined less ant depreciation, togerher with interest at the bank rate for delayed payment of compensation and in respect of any improvement in the nature of reclamation works, being such cost thereof as may be substantiated by documentary evidence and proof to the satisfaction of the government.

What is the provision of law on the reference of disputes as to compensation?

– Where there arises any dispute as to the amount of compensation calculated in accordance with the provisions of the Land Use Act, such dispute shall be referred to the appropriate Land Use Allocation & Committee .

– Debts due to the government will not be extinguished by a revocation concerning such right of occupancy.

What is the extent of the governor’s powers to offer resettlement in case of revocation of a right of occupancy in lieu of compensation?

– An offer of resettlement in lieu of compensation based on the discretion of a state governor or local government chairman.

– Where the resettlement value is higher than the monetary value of the original landed property being the subject of a revocation, the balance will be automatically taken as a loan from the state government. 

President Bola Tinubu has welcomed the judgment of the Supreme Court upholding his presidential election victory on Thursday.

Presidential candidates of the Peoples Democratic Party (PDP), Atiku Abubakar, and the Labour Party (LP), Peter Obi, filed an appeal at the Supreme Court, challenging the earlier judgment of the Presidential Election Petition Tribunal (PEPT), which upheld Tinubu’s victory.

A seven-man panel of Justices led by Inyang Okoro upheld the judgment of the Presidential Election Petition Court.

In his statement, Tinubu commended the court’s impartial handling of the case, stating that it solidifies Nigeria’s electoral and constitutional framework. Tinubu expressed unwavering confidence in the judiciary, emphasizing its commitment to justice for all Nigerians.

He noted that the ruling put to rest any doubts about the legitimacy of his election and reaffirmed that his party, the All Progressives Congress, rightfully won the people’s mandate. Tinubu accepted the victory with a sense of responsibility and a determination to address the nation’s challenges.

He pledged to serve all Nigerians regardless of their political affiliations, tribes, or faiths, and to work towards a more united and prosperous Nigeria. Tinubu also called for collective efforts in building a stronger and more prosperous nation, highlighting the importance of diversity and unity.

He expressed readiness to welcome contributions from all Nigerians to foster progress and improve living conditions.

Tinubu extended his gratitude to the citizens for entrusting him with the mandate, promising to exceed their expectations in governance.

Read his full statement below:

I welcome the verdict of the Justice John I. Okoro-led Panel of the Supreme Court on the Presidential Election petitions filed by the candidates of the Peoples Democratic Party and the Labour Party, challenging the ruling of the Presidential Election Petition Tribunal.

The court has done justice to all issues put up for consideration in the petitions on the merits of the law, without fear or favor.

There is no doubt, with the profound judgment of today, that our electoral jurisprudence and constitutional democracy are further consolidated and embedded more indelibly in our national identity because of the diligence and undaunted professionalism of the Honourable Justices who presided over the matter.

While the verdict of today has laid to rest the agitating discourse over who truly won the 2023 Presidential election and met the constitutional requirements as laid out by law, I want to reiterate that my faith in our nation’s judiciary has never been shaken, not even for a moment, because I know that our hallowed courts of law will not fail to administer justice to all Nigerians in all matters and at all times.

Despite the fusillade of pressure and attempts at intimidation by some political actors, the judiciary demonstrated its unequivocal commitment to upholding the rule of law for the upliftment and defense of humanity.

It was affirmed once more today, that my party, the governing All Progressives Congress, had freely and fairly won the popular mandate of Nigerians, which has since given rise to my leadership of this great nation at a tumultuous period of unprecedented reforms in our history as a nation.

With deep gratitude to God Almighty, I solemnly and humbly accept today’s judicial victory with an intense sense of responsibility and a burning desire to meet the great challenges confronting our people.

The victory of today has further energized and strengthened my commitment to continue to serve all Nigerians of all political persuasions, tribes, and faiths, with honour and total respect for the diverse opinions and uniting values of our citizens.

Our Renewed Hope agenda for a greater and prosperous Nigeria has further gained momentum and I will continue to work from morning to night, every single day, to build a country that meets our collective yearnings and aspirations.

We are all members of one household, and this moment demands that we continue to work and build our country together. The strength of our diversity and the great citizenship that binds us must now compel us forward in directing the energy of our people toward building a virile, stronger, united, and more prosperous country.

In the days and months ahead, I trust that the spirit of patriotism will be elevated into supporting our administration to improve the living conditions of Nigerians. I am prepared to welcome the contributions of all Nigerians to foster and strengthen our collective progress.

I send my immense gratitude to all Nigerians for the mandate to serve our country. I promise again to meet and exceed your expectations in service delivery and good governance, working with my team and trusting in the grace of God.

May God continue to bless the Federal Republic of Nigeria.

Bola Ahmed Tinubu

President and Commander-in-Chief, Federal Republic of Nigeria

October 26, 2023