The loan dispute between General Hydrocarbons Limited (GHL) and First Bank of Nigeria Limited (FBN) has escalated into a court battle following GHL’s request for a fresh $53 million facility to finance the development of Oil Mining Lease (OML) 120.
This is according to information gleaned from a leaked letter purportedly signed by Nduka Obaigbena as well as court documents seen by Naijaonpoint.
The disagreement has triggered allegations, lawsuits, and freezing orders, deepening tensions between both parties.
Sources close to the matter informed Naijaonpoint that officials at First Bank have refused to honor the new loan request, citing concerns over GHL’s utilization of previous loans disbursed for the same project.
This refusal, coupled with growing mistrust, culminated in a Mareva injunction court ruling that temporarily froze GHL’s assets across multiple financial institutions in favor of FBN’s outstanding debt claims.
According to the leaked letter addressed to the Central Bank Governor (CBN), Yemi Cardoso, the conflict stems from an agreement between FBN and GHL initiated during the tenure of Oba Otudeko, the former Chairman of FBN Holdings Plc.
The firm claims that FBN declined to perform its obligations under the MOU and the Outstanding Exposure Tripartite Deed, contributing to GHL’s loss of the Blackford Dolphin drill ship for which GHL is currently facing claims exceeding $100 million in arbitration.
The current controversy revolves around GHL’s application for a $53 million loan on 28th August 2024, to continue its drilling and development activities.
Several sources who spoke to Naijaonpoint suggest the timing is significant, adding that a change in the risk management framework of the bank may have contributed to the decline of the fresh facility demand of GHL.
Naijaonpoint learned that mediators involved in resolving the dispute proposed a significant overhaul in GHL’s leadership, including appointing new Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs).
GHL objected, describing the move as an attempt by FBN to take control of its assets, including OML 120, and replace GHL’s management team and operations.
The disagreement has now spilled into the courts.
Meanwhile, the legal tussle continues to delay critical oil exploration and development activities under OML 120.
In a separate but likely related development, ThisDay Newspaper, owned by Nduka Obaigbena, Chairman of General Hydrocarbons Limited (GHL), reported on its front page that some minority shareholders are purportedly demanding an Extraordinary General Meeting (EGM) to oust FBN Chairman Femi Otedola and Julius B. Omodayo-Owotuga, a Non-executive/Deputy Chief Executive of Geregu Power Plc.
“This matter does not in any way impact the operations of the Company, and all the businesses within the Group continue to provide uninterrupted services to its customers,” the statement read.
Sources within the bank suggest that these related developments may be part of a broader strategy to pressure the bank into conceding to the demands.
Sources within the bank suggest that these related developments may be part of a broader strategy to pressure the bank into conceding to the demands.
As the dispute between General Hydrocarbons Limited (GHL) and First Bank of Nigeria Limited (FBN) intensifies, regulators have remained silent on the matter.
Meanwhile, social media is awash with discussions about the Mareva injunction and leaked letter from GHL to the CBN.
Critics argue that the situation points to deeper systemic issues within Nigeria’s financial system, with potential lapses in oversight and accountability by financial institutions and regulators alike.