First Bank of Nigeria Limited has dismissed media reports alleging it abused court processes in its ongoing legal dispute with General Hydrocarbons Limited (GHL), describing such claims as baseless and misleading.
In a statement issued on Tuesday, the bank clarified that the case stems from a commercial transaction in which First Bank extended credit facilities to GHL for the development of Oil Mining Lease assets. The bank emphasized that the facilities were governed by robust loan agreements, with obligations and security arrangements clearly outlined.
The dispute reportedly began when First Bank demanded greater transparency and good governance in managing the financed assets. The bank alleged that GHL rejected its proposal for an independent operator to manage the assets, citing breaches such as the diversion of proceeds.
GHL, on the other hand, initiated arbitration proceedings and approached the Federal High Court for preservative orders. First Bank clarified that it has also filed a substantive claim at the Federal High Court regarding subsequent credit facilities, separate from the arbitration matter.
The bank defended its actions as a secured lender, asserting that it sought legal remedies to recover diverted funds, preserve assets, and prevent further breaches. “It is incorrect to assert that FirstBank abused the process of the court,” the statement read.
First Bank reiterated its commitment to supporting legitimate businesses and fostering a strong credit culture where borrowers meet their obligations. The bank assured its customers and stakeholders of its unwavering commitment to delivering top-notch financial services while adhering to legal and ethical standards.
The bank also expressed gratitude to its shareholders for their support in the ongoing recapitalization exercise under its parent company, First Holdco Plc.