FirstBank Clarifies Reports on Litigation with General Hydrocarbons Limited, Reaffirms Commitment to Exceptional Banking Services

First Bank of Nigeria Limited (FirstBank) has addressed recent media reports concerning its commercial transaction with General Hydrocarbons Limited (GHL), a matter currently under litigation. While the Bank has refrained from commenting on sub judice issues, it has issued clarifications to dispel false narratives surrounding the case.

FirstBank, a reputable corporate citizen with a 130-year legacy, extended several credit facilities to GHL for the development of Oil Mining Lease assets. These facilities were governed by comprehensive loan agreements outlining clear obligations and robust security arrangements. Despite fulfilling its commitments, FirstBank raised concerns about governance and transparency issues in the transaction, which GHL declined to address.

The Bank discovered breaches, including the diversion of proceeds by GHL, and proposed the appointment of an independent operator for greater accountability. GHL rejected this request and instead demanded additional funding without meeting stipulated conditions. Subsequently, GHL initiated arbitration proceedings and sought preservative court orders. While some of these orders were granted, others were denied.

Contrary to claims of court process abuse, FirstBank emphasized that it initiated substantive claims against GHL at the Federal High Court. These claims involve subsequent facilities not covered by arbitration agreements but by Nigerian jurisdiction. As a secured lender, FirstBank sought legal remedies to recover diverted proceeds, prevent further breaches, and safeguard its interests.

Reiterating its commitment to supporting legitimate businesses and fostering a robust credit culture, FirstBank assures stakeholders that it remains steadfast in ensuring borrowers fulfill their obligations. The Bank also expressed gratitude to shareholders for the successful first round of the parent company’s Rights Issue and looks forward to the next phase of recapitalization.

FirstBank remains resolute in providing gold-standard banking services, assuring customers and stakeholders of its unwavering stability and excellence.