Ronchess Blames Challenges, Interest Charges as Keystone Bank Loan Goes Awry

By Lydia Oluremi

Ronchess Global Resources Plc said challenges faced by the project it used the loan obtained from Keystone Bank and ‘high and inexplicable interest charges’ from the lender affected its ability to pay back.

The Lagos-based company, which supplies and installs road traffic management equipment and traffic control devices, said on Thursday that it had been made aware of an online publication regarding a court ruling that allegedly froze the company’s assets.

It said: “We would like to provide context and clarification on this matter. In 2022, Ronchess obtained a facility from Keystone Bank in accordance with its governing articles of association. Unfortunately, the project for which the facility was used faced challenges, resulting in setbacks to the expected returns. Furthermore, the bank accrued high and inexplicable interest charges without any clear details of how it was arrived at despite our formal efforts at reconciling the figures which received no response.

“Despite these challenges, Ronchess demonstrated good faith by engaging the bank in multiple discussions to restructure the facility and establish a manageable repayment plan and some payments were made to that effect. It was thus surprising and concerning to discover an ex-parte court order pasted on our Gusau office premises on March 25, 2025, with the gates shut with no previous originating summons or motions served on us at any time prior to this. This action raises questions about the procedural propriety of the order.

“We wish to emphasise that the facility was obtained within Ronchess’ permissible bounds and for a legitimate capital project. Our Articles of Association authorise and empower us to borrow or raise money for corporate purposes on terms and conditions deemed fit by the directors. As a responsible corporate entity, Ronchess is committed to upholding the law, adhering to ethical standards, and maintaining responsible business practices. We have initiated engagement with the bank to resolve this matter. We urge all stakeholders to remain calm as the issue is being resolved amicably by both parties and appreciate their understanding and cooperation in this matter.”