BY KINGSLEY OMONOBI

Fastfood firm,Chiro Nigeria Limited, has  petitioned the Central Bank of Nigeria (CBN) over alleged illegal withdrawals totaling over N15 million from its account by a commercial bank , saying the action has crumbled its business.

Addressing newsmen, yesterday, the chairman of the company, Felix Nwabueze, explained that Chiro, a franchisee of Mr. Biggs in Garki, Abuja, obtained a N60 million loan to expand the  food business but rather than expand the company, the loan has grounded the business.

Disclosing that the terms and conditions of the loan taken in January 2011 include a prime lending rate (PLR) of 15% per annum, with the loan packaged expected to be repaid in 36months, Nwabueze said, in October, 2011, the term of the loan was repackaged as N41, 666,666.67 term loan for 71 weeks but with the same terms and conditions.

“To our utmost surprise, the bank applied 17 per cent per annum on the loan from commencement instead of 15 per cent per annum as contained in the offer. In addition to excess interest rate, we discovered there were other overcharges”, he said.