FIRSTBANK CLARIFIES MISLEADING REPORTS, REASSURES CUSTOMERS OF GOLD STANDARD BANKING SERVICES

First Bank of Nigeria Limited (FirstBank) has noted with concern recent media reports concerning a commercial transaction between the Bank and General Hydrocarbons Limited (GHL), which is currently the subject of litigation.
As a responsible corporate entity committed to the rule of law and due process, FirstBank is unable to comment on issues pending determination by the courts, as these matters are sub-judice. However, it has become necessary to address certain false and misleading narratives being circulated.
At the heart of the matter is a commercial transaction where FirstBank, as lender, extended several credit facilities to GHL for the development of specific Oil Mining Lease assets. These facilities were governed by robust loan agreements that clearly outline the obligations of both parties and the security arrangements for the loans.
While FirstBank has fulfilled its obligations under these agreements, disputes arose when the Bank insisted on governance and transparency measures in the project to protect stakeholders’ interests. GHL rejected these measures, including the proposal for a mutually agreed independent operator to manage the financed asset. Instead, GHL refused to comply with the Bank’s stipulated terms for additional funding and initiated arbitration proceedings.
It is important to clarify that:
1. Legal Proceedings: GHL has no substantive claims pending at the Federal High Court. Its actions at the court were limited to seeking preservative orders pending arbitration.
2. Substantive Claims: FirstBank is the only party that filed substantive claims against GHL in the Federal High Court regarding subsequent credit facilities, which are not subject to arbitration.
3. Breach of Agreement: GHL diverted proceeds from crude off-taken from the Floating Production Storage and Offloading (FPSO) vessel, violating loan agreements. FirstBank’s legal actions aim to preserve assets, recover diverted funds, and ensure compliance with repayment obligations.
As Nigeria’s premier financial institution with over 130 years of unbroken service, FirstBank is committed to supporting legitimate businesses and fostering a strong credit culture. Borrowers must honor their obligations, and FirstBank will continue to use lawful measures to uphold its interests.
The Bank assures its customers, stakeholders, and the public of its unwavering commitment to providing exceptional services while safeguarding its reputation and financial stability.
Additionally, FirstBank extends its gratitude to shareholders for the successful first round of the Rights Issue by its parent company, First Holdco Plc (“FirstHoldco”), and looks forward to an equally successful completion of the recapitalization exercise.