First Bank clarifies legal dispute with General Hydrocarbons Limited

Dr Adesola Kazeem Adeduntan Chief Executive Officer at First Bank Nigeria
Dr Adesola Kazeem Adeduntan Chief Executive Officer at First Bank Nigeria | Official website

First Bank of Nigeria Limited has addressed recent media reports concerning a legal dispute involving the bank and General Hydrocarbons Limited (GHL). The transaction in question, which involves credit facilities extended by FirstBank to GHL for oil mining lease development, is currently under litigation.

In its statement, FirstBank emphasized its commitment to legal processes, stating that it cannot comment on matters pending court determination. However, the bank sought to clarify certain points due to what it described as "sponsored but false narratives" in some media outlets.

The bank outlined that the dispute arose from its demand for governance and transparency in the transaction, which GHL allegedly rejected. FirstBank claims breaches by GHL, including diversion of proceeds, led it to request an independent operator for the financed asset. This request was refused by GHL, who instead demanded more funding without meeting the terms set by FirstBank.

According to FirstBank, GHL initiated arbitration proceedings and sought preservative orders from the Federal High Court while having no substantive claim there. In contrast, FirstBank filed a substantive claim against GHL at the same court concerning subsequent credit facilities not subject to arbitration.

The bank stated that allegations of abusing court processes are incorrect and detailed steps taken to preserve assets and recover diverted funds. It reiterated its long-standing support for customer financial needs while maintaining a strong credit culture where borrowers fulfill repayment obligations.

FirstBank reassured stakeholders of its stability and commitment to providing quality services. It also expressed gratitude towards shareholders for their participation in an oversubscribed Rights Issue related to its parent company’s recapitalization efforts.




Top