First Bank of Nigeria Limited has described media reports alleging that it abused court processes in its legal battle with General Hydrocarbons Limited (GHL) as false and misleading.
In a statement released on Tuesday, the bank clarified that it had fulfilled its obligations under the loan agreements. However, the dispute began when First Bank demanded good governance and transparency in the transactions—demands that GHL allegedly rejected.
The statement emphasized that, as a responsible and law-abiding corporate entity with deep respect for the judiciary, First Bank will not comment on matters currently before the courts, as these are sub judice. However, the bank expressed its concerns over what it described as “sponsored but false narratives” being circulated in some media outlets.
According to First Bank, the legal tussle stems from a commercial transaction in which it extended significant credit facilities to GHL to finance the development of certain Oil Mining Lease (OML) assets. The bank asserts that these facilities were governed by robust loan agreements that outlined the obligations of both parties and detailed the security arrangements.
The statement further alleged that breaches by GHL, including the diversion of proceeds, prompted First Bank to demand the appointment of an independent operator to manage the financed assets transparently. This request, the bank says, was in line with the terms of the agreement.
When GHL refused to comply, First Bank initiated a court case to protect its interests. The bank also accused GHL of pursuing “unnecessary arbitral proceedings” in response. First Bank maintains that its decision to take legal action was necessary to safeguard its assets, recover diverted proceeds, and ensure that similar breaches do not occur in the future.
The bank assures its numerous customers, stakeholders, and the general public that it remains solid, calm, steadfast, and unflinching in its resolve to continue providing first-class services to its teeming customers within and outside the country.
FirstBank also thanked its shareholders for the indicatively oversubscribed Rights Issue of its parent Company, First Holdco Plc, in the first round of its capital raise and looks forward to an equally successful final leg of the recapitalization exercise when First Holdco announces it.
Source: Channels
