By: Momodou Justice Darboe
The Managing Director of Jah Oil company, Momodou Hydara, has contended that the liquidity position of Jah Oil company is stronger than that of many big businesses in The Gambia.
The Cement Importers and Traders Association of The Gambia (CITA), whose members were up in arms against Jah Oil as the company allegedly tried to exert dominance over the Gambia’s cement market, recently hinted that Jah Oil company’s liquidity position has weakened, and was re-capitalized by the government of The Gambia with over D3 billion.
Confronted on Monday with this claim and those of commentators, who claimed that the over D3 billion BADEA Loan Facility given to Jah Oil by the government sometime this year, was meant to resuscitate the company’s “weakening” liquidity position, Mr. Momodou Hydara said Jah Oil was on a sound financial footing with no reason to seek a financial bail-out.
“If people don’t know Jah Oil, let them go and do research. There is no business in this country that is more liquid than Jah Oil. This loan is given in tranches, not in bulk. When the noise over the loan became too much, he offered to withdraw and asked for his collateral security but no one was eligible for it. So, he went for it so that The Gambia would not be deprived of the opportunity,” stated Hydara.
“This guy [Hamidou] has made millions before this money. It’s not only in The Gambia he has businesses. And he is a millionaire in those regions,” he added.
Hydara said the loan was granted to Jah Oil fairly and transparently as all businesses were invited to the trade ministry as an opportunity to express interest.
On 26 April 2023, The Gambia and BADEA signed in Morrocothe Revolving Line of Credit Agreement following the Gambia’s request to the financing institution to provide a revolving trade finance facility of an amount not exceeding US$50M to be dedicated to the financing of importing of petroleum products, food and other essential commodities from African and Arab countries.