First Bank of Nigeria Limited has clarified its stance on a contentious credit facility involving Nduka Obaigbena’s General Hydrocarbon Limited (GHL). Valued at ₦1.024 trillion on the stock market, the bank remains committed to debt recovery following a soured loan agreement.
The Federal High Court in Lagos recently ordered Nigerian banks to freeze assets and accounts linked to Mr. Obaigbena, totaling $225.8 million. This ruling follows First Bank’s legal action to recover $718 million allegedly owed by GHL, a company tied to Obaigbena and his family members. Justice Deinde Dipeolu issued the Mareva injunction, instructing banks to halt transactions with the Obaigbenas and their associated businesses.
Obaigbena’s lawyers, Abiodun Layonu & Co., accused First Bank of seeking a Mareva order despite a prior injunction from Justice Lewis Allagoa, which prohibited enforcement actions against the Obaigbenas pending arbitration. They warned the bank of “grave legal implications” for bypassing this ruling.
In a statement, First Bank detailed its position, emphasizing that its actions were in line with loan agreements established with GHL for oil lease development. The bank claimed that breaches, including revenue diversion by GHL, led to the dispute. First Bank sought transparency by proposing an independent operator for the project, which GHL rejected, instead demanding additional funding.
First Bank clarified that it filed its claims at the Federal High Court for breaches related to subsequent credit facilities, distinct from matters submitted for arbitration by GHL. The bank accused GHL of diverting crude proceeds and obstructing repayment efforts, necessitating legal action to recover assets and safeguard interests.
The bank expressed confidence in the judiciary to uphold contractual obligations and prevent further breaches.
