First Bank of Nigeria Limited (FirstBank) has issued an official statement addressing recent media reports regarding a commercial transaction with General Hydrocarbons Limited (GHL), which is currently the subject of ongoing litigation.
As a law-abiding institution that respects judicial processes, FirstBank emphasized its inability to comment on matters pending before the courts. However, the bank clarified certain inaccuracies and false narratives circulating in the media.
The dispute stems from a series of credit facilities extended by FirstBank to GHL for the development of Oil Mining Lease assets. According to FirstBank, these facilities were backed by comprehensive loan agreements that clearly outlined the obligations of all parties and included robust security arrangements.
Despite diligently fulfilling its obligations, FirstBank highlighted governance and transparency concerns regarding the transaction. The bank stated that breaches by GHL, including diversion of proceeds, led it to request the appointment of an independent operator to manage the financed asset transparently. This request, which aligned with the terms of the agreement, was rejected by GHL, which instead demanded additional funding without adhering to the stipulated terms of the bank’s offer.
Following GHL’s rejection and initiation of arbitration proceedings, FirstBank revealed that it approached the Federal High Court to preserve assets, recover diverted proceeds, and protect its interests as a secured lender. The bank clarified that its substantive claim, filed at the Federal High Court, relates to subsequent credit facilities not covered by arbitration agreements.
The statement reaffirmed FirstBank’s dedication to providing exceptional services to its customers, maintaining its solid financial standing, and supporting legitimate business aspirations. With over 130 years of unbroken service, FirstBank assured stakeholders of its resolve to deliver gold-standard banking experiences.
Additionally, the bank expressed gratitude to shareholders for the successful oversubscription of its parent company, First Holdco Plc’s Rights Issue, during the first phase of its recapitalization exercise, and looked forward to an equally successful final leg.
FirstBank reiterated its commitment to upholding the trust of its customers and stakeholders while continuing to deliver unparalleled financial solutions both locally and internationally.
