First Bank of Nigeria Limited has refuted allegations of court process abuse in its legal dispute with General Hydrocarbons Limited (GHL), describing such reports as false and misleading. The bank clarified that the legal battle arose from its demand for governance and transparency in transactions, which GHL allegedly rejected.
In a statement issued on January 14, 2025, First Bank highlighted its fulfillment of obligations under the loan agreements governing the financing of Oil Mining Lease (OML) assets for GHL. The agreements reportedly included detailed terms outlining obligations and security arrangements. However, the bank claims GHL breached these agreements, including diverting proceeds meant for the financed assets.
The breach led First Bank to demand the appointment of an independent operator to ensure transparency, in line with the terms of the agreement. When GHL failed to comply, the bank took legal action to protect its interests and recover diverted proceeds. First Bank criticized GHL for initiating “unnecessary arbitral proceedings,” which it views as counterproductive.
While the matter remains sub judice, First Bank expressed concerns over what it described as “sponsored but false narratives” aimed at tarnishing its reputation. The bank emphasized its commitment to the judiciary and assured stakeholders that its actions were necessary to safeguard assets and prevent future breaches.
First Bank also reiterated its commitment to providing excellent services to its customers globally, noting that it remains financially strong and operationally resilient. The bank thanked shareholders for the oversubscription of the Rights Issue by its parent company, FBN Holdings Plc, during the first phase of its capital raise. It expressed optimism for the success of the final phase of the recapitalization exercise.
